Public Limited Company Registration

 

Public Limited Company Registration in India –

Starting a business with large-scale expansion plans often requires a strong legal structure capable of raising capital from the public. A Public Limited Company Registration is one of the most trusted business structures in India for companies aiming for higher credibility, investment opportunities, and long-term growth.

Under the Companies Act, 2013, a Public Limited Company offers limited liability protection to shareholders while allowing the business to raise funds through public shareholding. This structure is commonly preferred by enterprises planning future expansion, institutional funding, or stock exchange listing.

This comprehensive guide explains the registration process, eligibility, required documents, compliance requirements, benefits, and important legal aspects of incorporating a Public Limited Company in India.

What is a Public Limited Company?

A Public Limited Company (PLC) is a company registered under the Companies Act, 2013 that can legally invite the public to purchase shares of the company. It operates as a separate legal entity from its shareholders and directors.

Unlike a Private Limited Company, there is no restriction on the transfer of shares in a Public Limited Company. It can also raise capital from the general public, venture capital firms, financial institutions, and stock markets.

The name of every Public Limited Company must end with the word “Limited.”

Features of a Public Limited Company

Separate Legal Entity

A Public Limited Company has its own legal identity separate from shareholders and directors.

Limited Liability Protection

Shareholders are liable only up to the amount of shares subscribed by them.

Perpetual Succession

The company continues to exist even after the death, resignation, or transfer of ownership by shareholders.

Easy Transferability of Shares

Shares can be transferred freely without affecting company operations.

Fund Raising Capability

A Public Limited Company can raise large-scale capital through public issues, investors, or stock exchanges.

Higher Corporate Credibility

Banks, financial institutions, investors, and government authorities generally consider Public Limited Companies more credible and transparent.

Minimum Requirements for Public Limited Company Registration

Before applying for Public Limited Company incorporation in India, the following minimum requirements must be fulfilled:

Requirement Minimum Criteria
Shareholders Minimum 7 Shareholders
Directors Minimum 3 Directors
Resident Director At least 1 Indian Resident Director
Paid-up Capital No minimum capital requirement
Company Name Suffix “Limited” Mandatory

A Public Limited Company can have unlimited shareholders, making it suitable for large-scale business operations.

Documents Required for Public Limited Company Registration

Documents of Directors and Shareholders

PAN Card

PAN Card is mandatory for all Indian directors and subscribers.

Identity Proof

Any one of the following documents can be submitted:

  • Aadhaar Card
  • Passport
  • Driving License
  • Voter ID

Address Proof

The address proof should not be older than 2 months. Accepted documents include:

  • Bank Statement
  • Electricity Bill
  • Mobile Bill
  • Telephone Bill

Passport Size Photographs

Recent passport-size photographs of all directors and shareholders are required.

Registered Office Address Proof

The company must provide a registered office address during incorporation.

Required documents include:

  • Electricity Bill or Utility Bill
  • Rent Agreement (if rented property)
  • No Objection Certificate (NOC) from property owner
  • Property Tax Receipt (if applicable)

 

Step-by-Step Process for Public Limited Company Registration

The entire registration process is completed online through the MCA portal using the SPICe+ forms.

Step 1 – Obtain Digital Signature Certificate (DSC)

All directors and subscribers must obtain a Class 3 Digital Signature Certificate because all incorporation forms are filed electronically.

Since a Public Limited Company requires at least 7 subscribers, multiple DSCs are generally needed.

Step 2 – Apply for Name Reservation

The company name is applied through SPICe+ Part A on the MCA portal.

The proposed name must:

  • Be unique
  • Not resemble any existing company
  • Not violate trademark rules
  • End with the word “Limited”

Two names can be submitted in order of preference.

Step 3 – File SPICe+ Part B Incorporation Form

After name approval, SPICe+ Part B is filed for incorporation.

This form includes:

  • Company incorporation details
  • Director details
  • Shareholding pattern
  • Registered office address
  • PAN and TAN application
  • DIN allotment for directors

 

Step 4 – Draft e-MOA and e-AOA

e-MOA (INC-33)

The Memorandum of Association defines the objectives and scope of business activities.

e-AOA (INC-34)

The Articles of Association define internal management rules and company operations.

All subscribers must digitally sign these documents using DSCs.

Step 5 – File AGILE-PRO-S Form

AGILE-PRO-S is a mandatory integrated form that enables additional registrations such as:

  • GST Registration
  • EPFO Registration
  • ESIC Registration
  • Professional Tax Registration
  • Bank Account Opening

 

Step 6 – Certificate of Incorporation Issued by ROC

After verification of all documents and forms, the Registrar of Companies (ROC) issues:

  • Certificate of Incorporation (COI)
  • Corporate Identification Number (CIN)
  • PAN
  • TAN

Once the COI is issued, the company becomes a legally registered entity.

Post Incorporation Compliance for Public Limited Company

After registration, certain mandatory compliances must be completed.

Opening Company Bank Account

The share capital contribution must be deposited into the company’s bank account.

Filing INC-20A

The company must file Form INC-20A within 180 days of incorporation to declare commencement of business.

Appointment of Auditor

The Board of Directors must appoint the first statutory auditor within 30 days of incorporation.

 

Advantages of Public Limited Company Registration

Easy Access to Capital

Public Limited Companies can raise funds through shares, institutional investors, and stock exchanges.

Better Brand Reputation

The structure improves trust among customers, investors, banks, and vendors.

Limited Liability

Personal assets of shareholders remain protected.

Business Continuity

The company remains operational regardless of ownership changes.

Growth Opportunities

This structure supports large-scale expansion and investment opportunities.

 

Disadvantages of Public Limited Company

Higher Compliance Burden

Public Limited Companies must comply with stricter legal and regulatory requirements.

Increased Disclosure Requirements

Financial statements and business information require greater transparency.

Higher Incorporation and Maintenance Cost

Compliance, auditing, and legal costs are generally higher compared to LLPs and Private Limited Companies.

Public Limited Company vs Private Limited Company

Basis Public Limited Company Private Limited Company
Minimum Shareholders 7 2
Minimum Directors 3 2
Public Share Issue Allowed Not Allowed
Share Transfer Freely Transferable Restricted
Compliance Higher Moderate
Suitable For Large Businesses Startups & SMEs

Public Limited Company Registration Fees in India

The registration cost depends on several factors such as:

  • Authorized Capital
  • Professional Fees
  • Stamp Duty
  • DSC Charges
  • Government Filing Fees

The total cost may vary based on the state and business requirements.

Who Should Register a Public Limited Company?

A Public Limited Company is suitable for:

  • Large businesses
  • Manufacturing companies
  • Infrastructure companies
  • Businesses planning IPO
  • Enterprises seeking public investment
  • Companies requiring large-scale funding

Common Mistakes During Public Limited Company Registration

Choosing a Conflicting Company Name

Many applications are rejected because the proposed name resembles an existing company or trademark.

Incorrect Documentation

Mismatch in names, addresses, or signatures can delay incorporation.

Improper Drafting of MOA & AOA

Incorrect business object clauses may create legal complications later.

Delay in Post Incorporation Compliance

Failure to file INC-20A or appoint an auditor can attract penalties.

Why Choose Professional Assistance for Public Limited Company Registration?

Professional experts help ensure:

  • Correct document preparation
  • Faster approval process
  • Proper compliance handling
  • Legal accuracy
  • Reduced chances of rejection

Professional support also helps businesses remain compliant with MCA regulations after incorporation.

Conclusion

A Public Limited Company is an ideal business structure for enterprises looking for expansion, investment opportunities, and higher market credibility. Although the compliance requirements are more extensive, the advantages related to fundraising, transparency, and long-term scalability make it a preferred structure for large businesses in India.

Proper planning, accurate documentation, and timely compliance play a crucial role in smooth registration and future business operations. Businesses planning to establish a large-scale corporate presence can greatly benefit from Public Limited Company Registration under the Companies Act, 2013.

Frequently Asked Questions (FAQs)

How many directors are required for a Public Limited Company?

A minimum of 3 directors are mandatory.

How many shareholders are required?

At least 7 shareholders are required for incorporation.

Is there any minimum capital requirement?

No, there is currently no minimum paid-up capital requirement.

Can a Public Limited Company raise funds from the public?

Yes, it can issue shares to the public and raise capital.

Is GST registration mandatory during incorporation?

GST registration is optional and can be applied simultaneously through AGILE-PRO-S.

How long does Public Limited Company Registration take?

Generally, the registration process takes around 10–20 working days depending on document verification and approvals.

Can NRIs or foreign nationals become shareholders?

Yes, foreign nationals and NRIs can become shareholders subject to FEMA guidelines.

Kyna FinTax Associates

Kyna FinTax Associates provides professional assistance for Public Limited Company Registration, company incorporation, ROC compliance, GST registration, taxation, and legal advisory services across India.

Contact Details:
Kyna FinTax Associates
WZ-1390/Z2, 3rd Floor, Nangal Raya Extension, South West Delhi – 110046
📞 WhatsApp/Call: +91 74210 82222
📧 Email: services@kynafintax.com
🌐 Website: https://kynafintax.com

Call Now  WhatsApp Us

For official tax filing updates, visit Income Tax Portal.