Public Limited Company Registration
A public limited company offers significant advantages to its shareholders, making it an attractive business structure for both entrepreneurs and investors. One of the key benefits is limited liability, which ensures that shareholders are only responsible for the company’s debts up to the amount they have invested, thereby protecting their personal assets. Additionally, shareholders have the flexibility to freely buy and sell their shares in the market, providing liquidity and an opportunity to generate returns.
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Overview of Public Limited Company
A public limited liability company allows limited liability to its proprietors and to its management team. However, in the case of a public limited company, a firm can sell shares to investors, which is considered a beneficial act in raising capital for the business. To establish a Public Limited Company, a minimum of three Directors is required, and there is no cap on the maximum number of members. Importantly, it has more strict regulatory requirements than a Pvt Ltd Company Registration.
A Public Limited Company is a different type of company but holds most of the characteristics of a private limited company. It enjoys more benefits, such as ease of transferability, borrowing capacity, limited liability, and perpetual existence. Like any other company in India including a Producer Company Registration, Public Limited liability is also registered according to the rules and regulations of the Companies Act 2013.
A public company appreciates the benefits of constrained liabilities for its individuals and has the right to offer its offers to raise the capital of the company. In the context of company registration in India, it can be joined with the least number of three chiefs and has more rigid rules and directions than a Pvt. Ltd. Company. It must have the least number of seven individuals, while there's no constraint for the greatest number of individuals. It gives all the benefits of a private restricted company in conjunction with more straightforwardness and simple transferability of possession and shareholding. Title, offers, arrangement, number of individuals, administration and chiefs, etc., separate an open limited company from the privately limited companies.
Advantages of a Public Limited Company
- Business Type For Investors: Investors and other parties prefer public limited companies to invest their money as they are well structured and have a transparent business structure. If anyone wants to raise capital for their business and sell the ownership in the business, this type of company is what they should consider.
- Most Suitable Business For Heavy Investment: Public Ltd is the company with the best business structure for heavy investment.
- Easy To Raise Funds And Loans: A public limited company is like a person, as it can list itself in various stock exchange markets in India and raise capital from the stock market and from interested investors. It also enjoys wide options to raise minimum paid-up capital for a public company, bank loans, and Institutional investors.
- Uninterrupted Existence: A Public Limited Company has ‘ perpetual succession’, which means it has uninterrupted existence until it gets legally dissolved. Being a separate legal person, a company is unaffected by the departure or death of any member; it continues to be in existence regardless of the changes in the membership of the company.
- Easy Transfer Of Shares: Importantly, it is very easy to get out of a public company limited by guarantee, as only shares of the company have to be handed over to the investor or purchaser along with share transfer forms.
- Owning Property: A Public Limited Company is a juristic person; it can own, acquire, enjoy, and estrange properties in its own name. To understand the structural features in more detail, read our in-depth guide on the characteristics of public limited company, covering share transferability, perpetual succession, and more.
Checklist for Registering a Public Limited Company in India
As per the Companies Act 2013, any public limited company ownership to be registered in India must meet the conditions mentioned below.
- To form a public limited company, a minimum of seven members is needed.
- There is no self-command on the maximum number of members.
- At least one of the directors must be an Indian Territory Resident.
- A minimum paid-up capital of around Rs 5 lakhs is required.
- The shares assigned to the members are munificently transferable.
- A public limited company is like a person as it can list itself in various stock exchange markets in India and raise capital from the stock market and from interested investors - an advantage not available to a Partnership Company Registration.
- MCA has recently updated its guidelines on this - read our article on MCA's 2026 company name approval rules to avoid rejection at the very first step.
- These types of companies are required to keep either public limited' or private limited' after their company names.
What is the difference between a Private Limited Company and a Public Limited Company?
There are various points of difference between these companies. Here are some chief differences between the two:
| Differences | Private Limited Company | Public Limited Company |
| Members |
Minimum: 2 Maximum: 200 |
Minimum: 7 Maximum: No Limit |
| Directors |
Minimum: 2 |
Minimum: 3 |
| Public Invitations | No | Yes |
| Minimum Capital Income | No | No |
| Issuance Of Prospectus | Not Required | Required |
| Name Differences | Must have PVT LTD at the end of its name | Must have “Limited” at the end of its name |
| Mandatory Statutory Meeting | No | Yes |
| Managerial Remunerations | Cannot exceed the limit of 11/% of the net profit | There are no such restrictions |
| Stock Exchange | Not listed on the stock exchange, nor carry out stock trades publicly. | Many businesses start as a Private Limited Company and later scale up. If you are planning to upgrade your structure, learn about the complete process of conversion of a private limited to a public limited company and how Kanakkupillai can assist you at every step. |
Documents Needed for Public Limited Company Registration in India
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Documents needed for Directors and Shareholders
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PAN Card
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Foreign nationals' nationality proof.
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Passport for Foreign Nationals
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Identity proof such as Passport, Driving License, Voter ID, and so on,
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Directors and Shareholders Address proof
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2 Passport-size photos
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The applicant can provide the electricity bill, phone bill, electricity bill or bank statement, and importantly, none of the above-mentioned documents should be older than two months.
- Rent Agreement or Conveyance attached with rent receipts.
- Latest Utility bills
- NOC provided by Landlord
- DSC
Note: Documents linked with the Foreign Director are as follows:
- Notarized (if the company director has a nationality of any Commonwealth country)
- Notarized & Apostilled (if the director residing in a country signed to the Hague Convention)
- Notarized & Consularised (If the director does not represent the above-mentioned categories)
Public Limited Company Registration Procedure
- Applying for Company Name Reservation
- Applying for the Digital Signature Certificate (DSC) of the Director
- Obtaining Director Identification Number (DIN)
- Getting approval from other authorities
- Submitting the needed documents to the Registrar of Companies (ROC)
- Drafting of MoA, AoA & other required documents and Filing of the EMOA and EAOA to register a public limited company
- A minimum of seven directors is required for incorporation into a public limited company.
- Applying for PAN & TAN of the company simultaneously, along with the company registration forms
- Receiving the Certificate of Incorporation of a public limited company. After receiving the certificate of incorporation, the public limited company is set to start its function.
- Before you begin, it helps to plan your budget. Check our detailed breakdown of public limited company registration fees in India to understand the government fees, professional charges, and stamp duty involved.
Frequently asked questions
The application for Digital Signature Certificate (DSC) for such companies is filed through the online portal, and the shareholders and directors of the company should sign it. The issuing of DSC needs some mandatory documents like address proof, identity proof associated with some photographs.
The first and foremost step in obtaining Public Limited Company Registration is to reserve and get approved the name of the company. The proposed or reserved name should not hold any word which is prohibited as per the Companies Act, 2013.
DIN is a short form of Director Identification Number, and it is issued by Registration of the Companies ROC, which permits the director to work in the company.
Yes, I can. It is a very easy process, and if the new address is inside the same city, the process of changing the address can be made within hours.
Generally, it takes 8-15 working days for a company to register. Moreover, it is a legal process and fixing a timeline is not practical; Start-ups are advised to plan the registration process in advance before the launch date of their company.
A public limited company needs a minimum capital of Rs. 5, 00,000. The director or shareholder must deposit this amount in the bank account of the public Limited Company in the determined share percentage. Then, the company can utilize the same deposit amount for its further operations.
The registration of the Public Limited Company is valid throughout the life of the company.
MOA is a short form of Memorandum of Association and it defines the business object, mission and vision of the company before its incorporation while AOA is a short form of Article of Association. It represents the internal constitution of the company.
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