rebecca 
If you are looking to start a business in India, it is important to understand the process of registering a public company. There are many mistakes that can be made during this process, which can lead to delays or even failure. In this blog post, we will discuss 10 of the most common mistakes made while registering a public company in India. By avoiding these mistakes, you can make the process much easier and ensure that your business gets off to a successful start!
1. Not doing proper due diligence: It is essential to do adequate research on the company before you register it as a public limited company. You should obtain financial statements and analyze them to understand the nature of its business and its associated risks.
2. Incorrectly filing documents: All forms and documents required for registering a public company must be filled out accurately and completely. If there are any mistakes, the application may be rejected or delayed.
3. Not complying with Indian regulations: It is important to follow all regulations and laws as required by the Indian government when filing documents for a company’s registration.
4. Not appointing professional directors responsible for managing the company: It is mandatory to appoint at least two professional directors who are responsible for managing the affairs of the public limited company.
5. Not choosing a proper name for the company: The name chosen for a public limited company must follow Indian regulations and should not be identical or similar to any existing companies.
6. Not obtaining adequate capital: A minimum of Rs. 5 lakhs must be deposited in a bank before the company can start its operations.
7. Not appointing auditors to audit accounts: The company must appoint an auditor within 90 days of its registration, who will be responsible for auditing the accounts of the company annually.
8. Not filing annual returns and other documents: A company must file its annual return within 30 days of the end of a financial year along with various other required forms and documents.
9. Not maintaining proper books of accounts: The company must maintain proper books of accounts in accordance with Indian regulations and laws.
10. Not paying taxes and other dues: The company must pay all applicable taxes, fees and other dues on time to remain in compliance with Indian regulations.
By avoiding these mistakes while registering a public company in India, you can ensure that the process is smooth and successful! Good luck!
