Public Limited Company Registration in Lucknow, Uttar Pradesh – Features, Difference, Process, Eligibility Criteria, Benefits, Disadvantages, Documents Required

Overview of Public Limited Company registration in Lucknow, Uttar Pradesh

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 Lucknow, Uttar Pradesh.

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 Uttar Pradesh

Located in northern India, Uttar Pradesh is famously known as the Heartland of India. It is because of its rich culture and historical traditions. This state is the most attractive tourist destination for both Indians as well as non-Indians. This state shares its boundaries with Rajasthan in the west, Haryana, Himachal Pradesh,Uttarakhand, and Delhi in the northwest, Bihar in the east, Madhya Pradesh in the south, and feebly touches the states of Jharkhand and Chhattisgarh in the southeastand an international border with Nepal in the north. This is the most populous state in the country and also the most populated country subdivision state in the world. Uttar Pradesh is the 4th largest in terms of the area constituting about 7.3% of the total geographical area of India. As per the demographics, Hinduism is practiced by more than three-fourths of India’s population, the following is Islam the next largest religious group. Though there are many languages spoken in Uttar Pradesh, among them, Hindi is the most widely spoken and officially acknowledged language.
Uttar Pradesh is the home of various pilgrimage sites, historical monuments, spots of various religious faiths, and several Hindu holy temples. Uttar Pradesh has a rich history with untold and known mysteries that is related to ancient times. This is the land where the great sages have taken birth, the world-famous destination of two great epic Battles of India i.e. Ramayana and Mahabharata. It has popular destinations such as Varanasi (the spiritual capital of India), Allahabad (the holy Sangam of two major rivers – Ganga and Yamuna and iconic Kumbh Mela gatherings held once in 12 years), Agra (the epitome of Mughal architectural perfection and is one of the seven wonders of the world- the Taj Mahal), many other exhilarating tourists. These scenic beauties and heritage sites attract the interest of travelers and represent every facet of Indian culture and ethnicity.
In the past few years, the state has experienced substantial economic growth. Agriculture Sector provides the leading occupation to the population of Uttar Pradesh and plays an important role in the economic development of the state. As per the latest report on net state domestic product (NSDP), Uttar Pradesh is the 2nd largest economy in India after Maharashtra. Uttar Pradesh is the 3rd largest contributor to the economy in terms of GSDP (Gross State Domestic Product) about 8.4 percent of India. According to the census of 2014-15 released by the India Brand Equity Foundation (IBEF), Uttar Pradesh has a 19% share of the country’s total food grain output. This state is the noble hub for the Information Technology (IT) industry, software, and electronic industry, media, and financial institutions such as Noida, Kanpur, and Lucknow. As a result, this state attracts most of the foreign direct investment showing interest in the above-mentioned fields.
Capital- Lucknow
Top Business ideas in Uttar Pradesh
As we know, Uttar Pradesh is the fourth largest state in India in terms of area, it is the noble hub of various industries like Information Technology (IT) industry, Software, and Electronics Department. Uttar Pradesh is enriched with various useful products, applicable to boost the overall production and manufacturing efficiency of the state. We are aware of the fact that in the agriculture sector, Uttar Pradesh is an 18.9 percent contributor to the food grain production of the country. In the past few years, this state has witnessed rapid industrialization and sharp advancement in technological assets. According to the survey of the World Bank and KPMG, Uttar Pradesh is in 10th rank among the Indian States on the ease of doing business and 5th rank in accordance with the labor regulations. Given below are the list of business idea in Uttar Pradesh are: –
Battery Reconditioning Business
As Uttar Pradesh is moving towards industrialization, it caters to various semiconductor industries and research & development centers. Hence, It is a service-based business that offers a lot of opportunities. This is best for the small-scale business idea where very less capital investment is required. Battery renovation work is done by replacing the battery parts and adding some Chemicals by using simple methods. Given below the list of proceduresfor how to start a battery reconditioning business in India –
• Skilled and experienced labor
• Prepare a well-structured business plan for battery reconditioning
• Necessary raw materials and equipment
• Registration of the business
• Selection of a location for the business
Fashion design business
As you all know that Uttar Pradesh is well-known for the handicraft and handloom industry. We have administered that in the past few years Uttar Pradesh has contributed in this field. Hence it is an excellent business idea for cost-effective and scalable production. Specially incorporated by those who have perfect knowledge of fashion and creative design.
Mention below is the list of procedures for how to start a fashion design business in India –
• Gathering of the information related to various fashion industry opportunities
• Prepare a robust and self-explanatory business plan
• Set up and decide the course you want to offer
• Look for the promotion possibilities
Startup Ecosystem in Uttar Pradesh
Uttar Pradesh state is one of the leading and largest contributors in the field of Information Technology, software development, and the electronic sector. This state is also focusing to work collaboratively with the citizen on developing infrastructure, human capital development, and effective policy implementation. This is done to create a productive ecosystem for the entrepreneurs and investors in the state.
From 2017 to 2022, Uttar Pradesh state initiated the Uttar Pradesh information technology and startup policy. It is the flagship policy of the state government to focus on the core objectives to create an environment that will stimulate the growth of investors entrepreneurs and startups.The vision of this policyis to develop a comprehensive socio-economic environment and focus on creating employment promoting entrepreneurship innovation and enhancingthe quality standard life in the state. Hence to crater the entire startup ecosystem, the state has come up with aninfuse model(Incubators-Fund of funds-Startup Entrepreneurs).
With this vision of empowering innovation and entrepreneurship in the state, the state government has collaborated with various prominent institutionslike IIT-Kanpur, IITBHU, IIM-Lucknow (Noida), KNIT Sultanpur.

Salient Features of a Public Limited Company registered in Lucknow, Uttar Pradesh

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 Lucknow, Uttar Pradesh

There are several differences between a private & Public Limited Company registered in Lucknow, Uttar Pradesh 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 Lucknow, Uttar Pradesh

Step 1-Obtain DSC for the proposed Company in Lucknow, Uttar Pradesh

As a first step towards registration in Lucknow, Uttar Pradesh, 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 Lucknow, Uttar Pradesh

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 Lucknow, Uttar Pradesh

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 Lucknow, Uttar Pradesh

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 Lucknow, Uttar Pradesh

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 Lucknow, Uttar Pradesh

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 Lucknow, Uttar Pradesh

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 Lucknow, Uttar Pradesh

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 Lucknow, Uttar Pradesh

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 Lucknow, Uttar Pradesh

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 Lucknow, Uttar Pradesh

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 Lucknow, Uttar Pradesh

Therefore, a Public Limited Company registered in Lucknow, Uttar Pradesh 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.