Public Limited Company Registration in Srinagar, Jammu and Kashmir– Features, Difference, Process, Eligibility Criteria, Benefits, Disadvantages, Documents Required

Overview of Public Limited Company registration in Srinagar, Jammu and Kashmir

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 Srinagar, Jammu and Kashmir.

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 Jammu and Kashmir

Popularly known as the “Heaven on Earth,” Jammu and Kashmir are known for their mind-blowing and breathtaking views, snow-covered mountains, exquisite and pertinent monuments, exhilarating wildlife, and local handicrafts. After the Reorganization Act was passed on 31 October 2019, J&K regained its statehood and emerged as a union territory of India. It is located in the northern part of our country, and Jammu and Kashmir share their national boundaries with Ladakh, Himachal Pradesh, and Punjab and its International boundary with Pakistan.
Jammu and Kashmir is a beautiful and picturesque place for tourists from all over the world. Places like Vaishno Devi Temple, Shalimar Gardens, Dal Lake, Amarnath Cave, and many other places are among the major tourist spots. Jammu is known for its temples, whereas Kashmir is known for the lakes, valleys, and gardens. Demographically, there is various language, but the most widely spoken language is Kashmiri. Muslim comprise the majority of the population of Jammu and Kashmir.
The climate in J&K is favorable for agro-based products, horticulture, and floriculture. Horticulture is famous and widely used in rural areas, providing employment to many local inhabitants. This is a crucial and viable step toward fostering the rural economy and enhancing the production of exotic handicraft and handlooms. Jammu and Kashmirare well-known for their small-scale industries such as carpet weaving, silks, shawls, basketry, copper and silverware, pottery, and walnut wood. The Gross State Domestic Product (GSDP) has increased by 8.51% between 2015-16 and 2020-21.
Capital- Srinagar (Summer) and Jammu (Winter)

Top Business Ideas in Jammu and Kashmir
Jammu and Kashmir is a land full of opportunities where one can set up multiple business models. It is stretched from horticulture to the tourism sector and handicrafts. So, one can find numerous business ideas, employing the inhabitants, especially the local women. Given below is the list of ideas by which to start a business: –

Horticulture Business
If you are willing to find a flourishing and thriving business, then horticulture is the best business idea. As per the latest survey report, horticulture is the largest business idea as it constitutes 23% to 25% of the GDP of the Jammu and Kashmir alone. You can create substantial employment opportunities for the young generation through this business. Jammu and Kashmirare rich in mineral soil layers and contain various rivers and water bodies. As a result, Jammu and Kashmir are among the best places for agro-business or farming-related businesses.
You can choose any of the items mentioned below to start your business:
Onion
Vegetable Seeds
Mushroom
Apple
Strawberry
Saffron
Almond
Potato

Handicraft Business
Handicraft is one of the key strengths of Kashmir. In the business of handicrafts, local customization comes in handy. Hence, this state has a huge potential in the field of handicrafts. There are various business products such as carpet weaving, silks, shawls, basketry, etc. Hence, it would be best to have skilled labor and raw materials to start the business. As per the latest records, more than 3.4 lakhs of craftsmen are engaged in this business. So, if you are considering starting your business, a handicraft business is a good choice. As a fact, local handicraft is available in abundance here.

Sericulture Business
From ancient times, Jammu and Kashmir have been well-known for their silk generation as they have various scopes to succeed in the business paradigm. As a fact, Kashmir has the best quality Bivoltine Mulberry silk in India. This silk is famous for its superior quality, soft texture, extended length, and adaptability to all climate changes. The business model possesses a good position in the growth and contribution of the state GDP.

Fishery Business
States like Bihar, Jammu, and Kashmir are also blessed with the water assets stretched around their territory of about 0.4 lacs hectares. This constitutes various high-altitude lakes, rivers, springs, torrential streams, and reservoirs. As we know, stream water is good for fish growth and accumulation, making fisheries an amazing and ideal business model for Kashmir and Bihar.

Poultry Farming Business
Local poultry farming is a thriving and ever-growing business in Jammu and Kashmir. Jammu and Kashmirare well-known for producing the best quality poultry creatures. As a fact, the local people seem fairly interested in consuming more poultry products. You can increase the business reach to various states and cities by expanding the farms and exporting to other states. So, by this method, you can make your lucrative business model within the state.

Startup Ecosystem of Jammu and Kashmir
Scattered pearls cannot make the necklace on their own, so you need to weave them in a common thread that adds elegance, poise, and beauty to the necklace and the pearls. The Jammu and Kashmir state has a similar story. As per the latest changes, the Startup India team thinks the support could be extended to the entrepreneurs. There are over 100 technology-based startups registered with DPIIT and the startup India working across sectors. Various other volunteer organizations, such as Jammu Startup Community and ThinkPods. There is an NIT (National Institute of Technology) that has the required potential to ignite innovation among the bright and young students who study there.
Attempting to accomplish this startup ecosystem task, the government of Jammu and Kashmir government is focusing on various sectors such as food processing, agriculture, renewable energy, and handicrafts by promoting startups in these crucial sectors.
Startup JK is an online platform for all the startup ecosystem stakeholders in J&K, including investors, mentors, accelerators, service providers, and government bodies. This platform provides a medium to connect with other members of the ecosystem and access crucial resources like information about pertinent government schemes, Learning, and Development program, discuss issues, the latest news, and blogs, among others.

Salient Features of a Public Limited Company registered in Srinagar, Jammu and Kashmir

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 Srinagar, Jammu and Kashmir

There are several differences between a private & Public Limited Company registered in Srinagar, Jammu and Kashmir 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 Srinagar, Jammu and Kashmir

Step 1-Obtain DSC for the proposed Company in Srinagar, Jammu and Kashmir

As a first step towards registration in Srinagar, Jammu and Kashmir, 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 Srinagar, Jammu and Kashmir

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 Srinagar, Jammu and Kashmir

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 Srinagar, Jammu and Kashmir

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 Srinagar, Jammu and Kashmir

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 Srinagar, Jammu and Kashmir

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 Srinagar, Jammu and Kashmir

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 Srinagar, Jammu and Kashmir

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 Srinagar, Jammu and Kashmir

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 Srinagar, Jammu and Kashmir

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 Srinagar, Jammu and Kashmir

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 Srinagar, Jammu and Kashmir

Therefore, a Public Limited Company registered in Srinagar, Jammu and Kashmir 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.