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- A Public Limited Company allows raising capital from the general public.
- Minimum 3 directors and 7 shareholders are required.
- Ideal for businesses planning for IPO or large-scale funding.
- Shares are freely transferable (especially if listed).
- Registration requires DSC, DIN, name approval, and SPICe+ filing.
Introduction
Establishing a business in India assumes the proper legal basis. One such is what is called a Public Limited Company (PLC). A business deciding to raise capital from the general public and have a wider base of ownership would consider this one of their best options. If you want to take your work public or want to raise large-scale investment into the organization, Public Limited Company Registration is likely your best option.
In this article, we aim to explain a Public Limited Company, its types, advantages, its registration process, and how Diligence Certification can assist you in making a smooth start.
What Is a Public Limited Company?
A Public Limited Company is a company where the shares are offered to the general public with limited liability. The company is mainly governed by the Companies Act, 2013, along with all relevant rules and regulations prescribed by the Ministry of Corporate Affairs and Securities and Exchange Board of India (in the case of listed companies).
A minimum of three directors and seven shareholders are required to constitute a PLC; however, there is no limit to the maximum number of shareholders. It can be listed or unlisted on a stock exchange.
Why Register as a Public Limited Company?
1. Ease of access to capital
Many people recognize the benefit in a PLC’s ability to issue equity shares or debentures or convertible instruments to the public. PLC’s are set up for scaling quickly, especially if you’re in the infrastructure-heavy sectors of manufacturing, logistics, or fintech.
2. Brand Credibility
Many B2B clients, especially government organizations or PSUs, will only work with a PLC as they value the governance structure and reporting requirements of a PLC.
3. Limited Liability
Like private limited companies, PLC directors and shareholders have limited liability which protects their personal assets in a situation where their business’ worth is less that what creditors are now owed and they are not able to repay their creditors.
4. Ability to list the company on a stock exchange and provide liquidity
Once registered, the PLC may apply for an IPO. Shareholders can trade the PLCs shares on either the NSE or BSE where the trading is based on supply and demand driven values.
Types of Public Limited Companies in India
- Listed Public Companies : Truly public companies list their shares on stock exchanges like the NSE or BSE and may issue shares to the public through an IPO.
- Unlisted Public Companies : These are not listed on stock exchanges but uphold the compliance framework for public companies.
- Government-Owned Public Companies: Comprising governmental ownership of over 51% of its shareholding.
- Converted Public Companies: Private companies which have converted into public companies to obtain public capital.
Eligibility Criteria for Public Limited Company Registration in India
To successfully register a Public Limited Company in India, one must meet eligibility requirements outlined in the Companies Act, 2013.
Minimum Members: Registration of a public limited company has no restriction for the maximum number of shareholders but requires a minimum of 7 shareholders to register a public limited company.
Minimum Directors: A minimum of 3 directors must be appointed as a part of a public limited company.
Minimum Paid-Up Capital: A public company should have a minimum paid-up capital of ₹5 lakh (this minimum may be regulated as per amendments).
Unique Company Name: the name must be unique, and the name must be approved by the Ministry of Corporate Affairs (MCA).
Registered office address: A valid address within India is required for official communication.
Digital Signature Certificate (DSC): All directors must have DSC to sign electronic documents.
Public Limited Company vs Private Limited Company
| Feature | Public Limited Company | Private Limited Company |
| Minimum Members | 7 | 2 |
| Maximum Members | No limit | 200 |
| Share Transferability | Freely transferable | Restricted |
| Capital Raising | Public issue, IPO | Private funding only |
| Compliance | High | Moderate |
Choosing between the two depends on your business goals, funding requirements, and readiness to handle higher compliance.
Benefits of Registering a Public Limited Company
- Capital Availability: Funds may be raised from the public by way of shares or debentures.
- Enhanced Credibility: It is viewed as a more transparent and stable form of business organization.
- Perpetual Succession: An independent legal identity continues with the change of ownership.
- Limited Liability: Shareholders are liable only to the extent of their shareholding.
- Easily Transferable: Shares can be traded freely on stock exchanges (if listed).
Documents Required for Public Limited Company Registration
- PAN and Aadhaar of all directors and shareholders
- Passport-size photographs
- Address proof of directors (Electricity Bill/Bank Statement)
- Registered Office Proof – Rent agreement, utility bill, NOC from the owner
- Digital Signature Certificate (DSC) of all proposed directors
- Director Identification Number (DIN)
- Memorandum of Association (MOA) and Articles of Association (AOA)
Step-by-Step Procedure for Public Limited Company Registration
- Obtain Digital Signature Certificate (DSC) – Required for filing forms electronically with MCA.
- Apply for Director Identification Number (DIN) – Unique ID issued to proposed directors.
- Name Approval – Apply for name reservation using the RUN or SPICe+ Part A form.
- File Incorporation Documents – Submit MOA, AOA, and other required forms via SPICe+.
- Receive Certificate of Incorporation – Issued by the Registrar of Companies (ROC).
- Apply for PAN and TAN – Needed for taxation purposes.
- Open a Bank Account In the name of the company to start operations.
Post-Incorporation Compliances for Public Limited Companies
- Appoint an auditor within 30 days
- Conduct board meetings and Annual General Meetings (AGMs)
- File annual returns (Form MGT-7) and financial statements (Form AOC-4)
- Maintain statutory registers and records
- Adhere to SEBI and listing regulations if listed
How Diligence Certification Helps You
When it comes to Public Limited Company Registration, Diligence Certification is your best partner to take care of the whole process for you. From the beginning of our consultation until you receive your Certificate of Incorporation, our teams of professionals will draw together all of the necessary documentation without any errors, with filings compliant with MCA regulations; here’s how:
- Name Approval & Documentation: We will check the proposed Names to rule out the possibility of your name being rejected by the MCA, and we will prepare all the documentation (MoA, AoA, DIR forms) for your company in accordance with these findings.
- Digital Signatures & DIN: We will help you in obtaining a Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) for your directors.
- Filing with MCA: Our individuals will file for the SPICe+ forms, AGILE-PRO-S, and allied registration timelines (PAN, TAN, GST) of your company.
- Compliance Timelines: We will help you for all matters of compliance, and any filings that need to be submitted such as opening a bank account, issuing of share certificates, filing of INC-20A and appointing auditors.
- Cost & Time Reduction: We reduce costs and save you time by eliminating the likelihood of you making mistakes, re-filing and lodging documents with the MCA.
- Future-Ready Structure: Our team of consultants will also ensure that your company structure is future-ready, in the event you go to an IPO, or wish to undertake future investment with a clean cap sheet and governance clarity.
Conclusion
On behalf of the entrepreneur, Public Limited Company Registration in India is one of their major strategic decisions and aims for high performance, credibility, and capital access. It provides substantial corporate structures under which transparency, compliance, and investor trust are standard features. Public Limited Company Registration becomes much easier and gratifying if done under the right guidance and documentation.
Diligence Certification manages the entire process – Digital Signature Certificate (DSC), DIN, name approval, documentation, ROC filing, and post-incorporation compliance, all items attached to setting up a company in India. Our consultants are experienced and well-informed in ensuring that the registration of your public limited company is not only fast and efficient but also 100% compliant with Indian regulatory frameworks.
Call now if you’re all “fired up” to begin venturing forth into building your next great venture entirely as a Public Limited Company with our expert advice and end-to-end support. Diligence Certification: Your trusted partner for corporate compliance and registration.
Frequently Asked Questions (FAQs)
How many members are required to form a public limited company?
At least 7 members and 3 directors are required.
Is it possible to convert a private company into a public limited company?
Yes, by passing a special resolution and completing ROC proceedings.
Is it compulsory that a public limited company should list itself on the stock exchange?
No, unlisted public companies are also allowed.
What is the validity of DIN and DSC?
DIN shall be issued for a lifetime, while DSC is valid for a period of 1-2 years and is subject to renewal.
What is the registration process?
It normally takes between 10–15 working days, as on the readiness of the documents.
Can NRIs or foreigners become directors in a public limited company?
Yes, but at least one must be a resident director of India.
What is the government fee for PLC registration?
It depends on the authorized capital. A Diligence Certification gives a complete fee structure
Does the registration of a public limited company require a Digital Signature Certificate (DSC)?
Yes. It is a requirement for digitally signing incorporation papers.
What does a Director Identification Number (DIN) mean and what is its utility?
DIN is an exclusive identity for directors given by MCA. It is mandatory to serve as a director in any company.
What data are needed to set up a public limited company in India?
Identity proof, address proof, registered office proof, DSC, DIN, MOA, and AOA.
