Public Limited Company Registration in Imphal, Manipur – Features, Difference, Process, Eligibility Criteria, Benefits, Disadvantages, Documents Required

Overview of Public Limited Company registration in Imphal, Manipur

Starting a business of your own may be a huge accomplishment for you to finally gather courage & take a leap of faith in the right direction regardless of its scale of operations. But, you would want to ensure that you choose a business structure that could offer maximum benefits for you and you might want to look for options to choose from. Accordingly, if a business entity will need huge capital investments, may opt to be registered as a Public Limited Company in Imphal, Manipur.

But, what is a Public Company? As per Section 2(71) of the Companies Act, 2013 a Public Company means a company that is not a private company. Further, a private company that is a subsidiary of a Public Company shall be deemed a Public Company.

In other words, a Public Limited Company is a company that doesn’t meet the definition of a private company i.e. it has at least seven members and at least three directors on its board and there is no upper ceiling for the maximum number of members as in the case of a private company.

Incorporation of a Public Limited Company with the Ministry of Corporate Affairs online portal grants legal recognition as well as affords all other privileges that are allowed to a body corporate such as limited liability, perpetual succession & a separate legal status. Not only this, a Public Limited Company is permitted by the law to raise capital from the public in general by listing their shares in a public stock exchange in India as well as from abroad.

However, since there is a larger amount of public interest involved in a Public Limited Company, it is often subject to more stringent compliances with many of the restrictive provisions of the Companies Act.

Public Limited Company in Manipur

Manipur is one of the states among the seven sisters of northeast India. Nagaland, Mizoram, and Assam border it and share international borders with Myanmar. During British rule, Manipur used to be a princely state. The state joined India on 11th August 1947 after the signature of the instrument of accession by Maharaja Budhachandra. The state’s official language is Manipuri, and the state consists of a 41% tribal population. There are different ethnic groups in Manipur that practice a variety of religions. As per the 2011 census, Hinduism is the major religion of Manipur, followed by Islam, Christianity, Buddhism, Judaism, and Sanamahism.
The state’s economy is primarily dependent on agriculture and has significant hydroelectric power generation potential. Imphal airport is an international airport that connects the state to the whole world. The natural climate and soil of Manipur are ideal for horticulture crops. Many rare and exotic medicinal and aromatic plants are found in Manipur. Major cash crops grown in the state are cashew, lichi, walnuts, lemon, papaya, pineapple, orange, peach, plum, and pear. The majority of cultivators in Manipur are women. The people of Manipur still follow the traditional cultivation method, so agricultural modernization is yet to be founded in Manipur. The best tourist season to visit Manipur is October to February. The state has rich culture and values. It is said that Polo, the royal game originated in Manipur.
Capital- Imphal

The startup ecosystem of Manipur
Manipur is slow but steadily began to take the initiative towards creating a robust startup ecosystem. The Manipur government outlined its startup policy in 2016. The startup policy of Manipur is known as the ‘Manipur startup policy.’ The vision of the startup policy is to make Manipur a top startup destination in the north-eastern region by taking different initiatives.
Under the startup policy, the Manipur government has established a startup cell in the state planning department. The motto behind establishing the startup cell is the implementation of the startup policy of the state. Through the startup policy, the Manipur government targets to build a strong startup ecosystem by assisting startups at various stages like pre-idea, idea, or prototype.
Through the startup policy, the state wants to create a Network of Entrepreneurship Development Centres (NEDC) with universities and institutions of higher education. The state will create a mentor expert network for startups. The valid startup policy of Manipur is yet to be notified, and the policy’s implementation date and guidelines will be drafted post-launch.

Top business ideas in Manipur
Manipur is known as ‘India’s gateway to the East.’ The state has an agricultural economy. Besides agriculture, it is dependent on industries, tourism, and mining for its economic development. The different crops grown in Manipur includes pulses, wheat, maize, rice, etc. If you aspire to set up a small business in Manipur following are the best options: –

Craft making
Manipur has a rich culture, and the craft of Manipur is famous worldwide. Women of Manipur make different decorative items and crafts. These are not random and ordinary crafts, but they reflect the culture and tradition of Manipur. The traditional decoration supplies and handicrafts of Manipur will always be in high demand, so setting up a craft-making business in Manipur can make you huge profits with less investment.

Handloom business
The Handloom industry of Manipur is famous for its colorful and cultural textures. For the local people, the handloom industry is a major source of livelihood. The women of Manipur are majorly engaged in the handloom industry; they have inherited this skill from their ancestors. Above all, the Manipur Handloom and Handicraft Department Corporation and the state government are also trying to market local artisans’ handloom products. So, a handloom industry in Manipur is also a good startup option. To establish the handloom industry in Manipur, you must contact local artisans, especially women.

Food processing business
Manipur is agricultural land, so the food processing industry is an ideal option in Manipur. Even the Government of Manipur is also trying to promote and develop the food industry by implementing different schemes under the central sector schemes. Besides, the state government is planning an initiative to open a food park at Nilakuthi. With the state government’s schemes, the food processing business will surely make good profits. This is a low-investment business but will help you make long-term profits.

Bamboo industry
Manipur has a lot of bamboo as it is rich in bamboo production. Majorly women are involved in the production of bamboo. By setting up, the bamboo industry you will create employment opportunities for local artisans. Besides this, bamboo is a crucial part of traditional cuisine in the North-Eastern states. So, it is surely a good small-scale business idea, especially for ladies living in rural areas as they know bamboo production and related activities.

Salient Features of a Public Limited Company registered in Imphal, Manipur

Number of Directors

Unlike a One Person Company or a private limited company, the primary requisite for starting a public limited company which will need at least three directors with no upper ceiling for the maximum number of directors.

Body Corporate

Since a Public Limited Company is a body corporate it enjoys limited liability, perpetual succession, and a separate legal status apart from its members in the eyes of law. Accordingly, in the event of debts or losses, the liability of any member could not go beyond his agreed contribution which is unlike in the case of a partnership firm or a sole proprietorship firm where the partners and business owners are jointly and severally liable for the debts of the business.

Paid up Capital

To start a Public Limited Company, there must be a minimum paid-up capital of Rs. Five or any higher amount prescribed by the Government under the Act.

Addition of word ‘Limited’ with name

Unlike a private company, which adds a ‘private limited’ after its name, every Public Limited Company must add ‘Limited’ after its name in every official publication.

Difference between Private & Public Limited Company registered in Imphal, Manipur

There are several differences between a private & Public Limited Company registered in Imphal, Manipur which have their own advantages & disadvantages in each of them. Hence, every entrepreneur may choose their business structure before establishing their company by analyzing each concept in depth. The primary differences have been provided below-

Process of Public Limited Company Registration Online in Imphal, Manipur

Step 1-Obtain DSC for the proposed Company in Imphal, Manipur

As a first step towards registration in Imphal, Manipur, the company should first obtain a class 3 category digital signature certificate from a government-recognized certifying authority available online, which takes around one or two days. DSC is the most important part of filling incorporation application online with MCA as it enables the company to e-verify its documents & attachments online.

Step 2- Make an application for allotment of DIN in Imphal, Manipur

Next, at least three directors of the proposed directors of the Public Limited Company will be required to obtain DIN to become directors of the company. Basically, there are two ways to apply DIN from the MCA portal-

i. File a separate application for DIN allotment through DIR-3 in Imphal, Manipur

The Form DIR-3 is an e-form filed for the purpose of making an application online for the allotment of DIN for a single individual director who wishes to become a director in an existing company. To file this form, proof of identification such as PAN, Aadhaar Card, etc, and address proof of the proposed director are required.

ii. Apply for DIN through the incorporation form SPICe+ in Imphal, Manipur

From 23.02.2020, the proposed director of a new company who is going to become a director for the first time could apply for DIN allotment within the SPICe+ form for up to three directors and doesn’t need to file the form separately.

Step 3-File the multipurpose form SPICe+ for incorporation in Imphal, Manipur

The SPICe+ form for the incorporation of a new company which came into effect on 23 February 2020, is a multi-purpose web-based application that not only facilitates the incorporation of the company but also offers facilities in two parts A & B for –

• Application for allotment of DIN (up to three directors)
• Reservation of company name (RUN)
• Application for PAN and TAN (mandatory)
• Application for EPFO registration (mandatory)
• Application for ESIC registration (mandatory)
• Application for Professional tax registration (for Maharashtra only)
• Application for opening a bank account (mandatory to file)
• Allotment of the GST identification number (GSTN)

To start the process of incorporation, all these e-forms have to be downloaded in PDF format, filled & signed digitally, and submitted online. Further, the user has also to download & fill SPICe+ form and affix a digital signature followed by a certification of the fulfillment of all compliances from a professional such as CA/CS or CMA. There is no fee applicable for the incorporation of a company with less than 10Lakhs of authorized capital.

Step 4- Filling & Submission of MOA & AOA in Imphal, Manipur

Next, the proposed company needs to file the drafted Memorandum of Association (MOA) & the articles of association (AOA) of the company in e-format. Memorandum & Articles of Association which represent the primary charter of the company as well as its bye rules for internal organization. The format for MOA & AOA has been prescribed in the form e-MoA (INC-33) and e-AoA (INC-34) respectively. After putting digital signatures by the subscribers to the Memorandum and Articles of Association, they could be submitted.

Earlier, the MOA & AOA needed to be filed physically, but now these have also been integrated with the incorporation form SPICe+.

Step 5-Approval & Getting COI in Imphal, Manipur

After submission of the SPICe+ form along with all required documents & attachments, the MCA authority will carry out verification of the documents & on being assured of its genuine, may issue the Certificate of Incorporation which contains a unique CIN number along with PAN & TAN number & other unique identification numbers as allotted after approval of the SPICe+ Form by way of an email on the registered e-mail address.

Eligibility Criteria for Public Limited Company Registration in Imphal, Manipur

i. Minimum amount of shareholders & directors- To start a Public Limited Company, the company needs to have at least seven members who subscribe to the Memorandum of Association of the company and at least three directors on its board. Though, there are no restrictions regarding the maximum number of directors or members a Public Limited Company can hold.

ii. Resident Director-The another requirement to start a Public Limited Company in India is having at least one resident director i.e. who has resided for at least 182 days during the immediately preceding year irrespective of their citizenship, who will be primarily responsible for the compliance of the company. It is to be noted that the number of days required for the calculation of 182 days could be in phases.

iii. Registered Office Address-Every Public Limited Company should have a temporary address at the time of registration of the company for communication purposes. Further, within a period of 30 days, the company needs to have a registered office address and proof of address must be submitted online.

iv. Unique Name of Company– For the purpose of eligibility, the company so proposed should be unique i.e. it should not be too closely similar to any already existing business and should not be a name in violation of the National Emblems Act 1950. The name of the company should suggest its business objectives which could be either a single objective or a multifaceted object.

v. Legal Object– The proposed company shall also have a legal object of business for its incorporation and not for any illegal purpose or posing any not misuse or harm the society, which should be described in the object clause of the Memorandum of Association (MOA) of the company.

vi. DIN for all Directors- As provided under sections 153 and 154 of the Companies Act, 2013, the Director Identification Number is a unique number mandatorily required to be obtained by a director in a company by making an application to MCA in e-form DIR-3.  However, for a first-time director for a new company, an application for DIN allotment could be made along with the incorporation form SPICe with MCA.

vii. Digital Signature Certificate (DSC)-Since all the documents & attachments have to be filed online, it will be mandatory for the directors of the Public Limited Company to obtain a DSC. A DSC helps to verify the authenticity of filling documents filed & submitted during incorporation and thereafter.

viii. Certificate of Compliance– After all the documents are drafted & prepared, the prospective Public Limited Company will need to obtain a certificate of compliance from a professional such as a CA/CS/CMA, that all the declarations for incorporation of a Public Limited Company have been genuinely made.

Benefits of Public Limited Company Registration in Imphal, Manipur

i. Limited Liability- Unlike a partnership firm, a Public Limited Company is a legal person whose assets& liabilities are separate from its members and thus the members of the company have limited liability towards the debts of the company, which cannot go beyond their agreed contribution to the capital of the company made by them in correspondence to the nominal value of their shares.

ii. Transparent & trustworthy– Since there is a larger public interest involved in a Public Limited Company in the form of investment, hence it is subject to higher compliances such as fillings of financial statements & annual returns, the Government demands more transparency from such companies in the form of compliances and intimations about changes from time to time.

iii. Easier Transfer of Shares- As per the provisions of the Companies Act 2013, the members in a Public Limited Company have no maximum limit, thus the shares of a Public Limited Company could be easily transferred from one person to the other. Especially for listed public companies, the prices of shares are quoted on a stock exchange, thus it is easier for anyone to sell or buy shares in the company

iv. Perpetual Succession– Unlike a partnership firm, a Public Limited Company enjoys perpetual succession, which means irrespective of the events like death, insolvency or any disability of its partners shall not affect its legal status. It continues to live until & unless it is legally dissolved through the prescribed procedures.

v. Ease to raise funds- A Public Limited Company having more members than any other business entity has access to more capital which also helps them in obtaining loans from banking & financial institutions and even from investors who join as a shareholder. Due to this, they can even enter negotiations to demand favorable rates of interest and conditions for repayment of loans. Additionally, a Public Limited Company can also offer debt securities for the purpose of extra funds for business expansion purposes.

vi. Better Growth and Expansion Opportunities-Compared to any other business entity, a Public Limited Company has several sources of gaining capital such as the fresh issue of shares, issue of debt securities, and loans from banks & financial institutions, there is always a strong probability of strong market presence and growth opportunities. Thus, it is significantly easier for a Public Limited Company to expand its business operations and get growth opportunities as compared to entities like private companies or LLPs who have to work relatively harder to raise funding or get investments.

Disadvantages of a Public Limited Company registered in Imphal, Manipur

1. Higher cost of Compliances– As aforementioned, in the case of a Public Limited Company, there is more public interest attached to the business management decisions and their consequences. Accordingly, it has to fulfill more compliances than other business entities, and hence there are higher costs of compliances.
2. Problems with Decision Making- Unlike a private company, where the number of members is limited, the number of shareholders is significantly larger, and no key decision related to the business could be made without the approval of shareholders. Thus, for making any business decision, the board of directors has to lay it in front of the shareholders and pass a resolution for carrying matters forward, which takes a longer time & effort.

Documents Required For Public Limited Company registration in Imphal, Manipur

i. Proof of Identification of all the proposed members and directors;

ii. Proof of residence of all the proposed directors and shareholders.

iii. Address Proof for the proposed registered address of the company such as utility bills.

iv. PAN Card of the proposed members;

v. In case the office property is rented, a NOC from the owner of the property

vi. Copy of proposed memorandum & articles of association of the company;

vii. DSC (Digital Signature Certificate) & DIN (Director Identification Number) of all the proposed directors.

Conclusion of Public Limited Company registration in Imphal, Manipur

Therefore, a Public Limited Company registered in Imphal, Manipur is a business entity that allows benefits of better funding & growth opportunities for entrepreneurs, which could be incorporated by following a simple and convenient process. So, get your company incorporated and start your journey today.