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What is a Public Limited Company?

Public Limited Company Registration in India

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    What is a Public Limited Company?

    In India, a Public Limited Company is a business formed under the Companies Act, 2013 that gives the public the option to buy the shares of the company. Such companies are registered with the Ministry of Corporate Affairs (MCA), and you can easily identify a Public Limited Company by adding the word “Limited” at the end of its name. 

     

    As a Public Limited Company is a separate legal entity, it will have its own right to own property, make a contract, borrow a loan, and go to the court all by itself as an entity. The risk or liability though borne by the shareholders in a public limited company registration is limited to their shares only to the extent of the unpaid value. 

     

    Also, this type of company gives the benefit of free trading of its shareholder’s stocks and also, since it is not dependent on the lives of its members, it can have a succession to it. 

     

    It is also the best business setup for large ventures which want to raise money in the capital market, issue stocks or take their company listings in stock exchanges or expand their operations within the country or internationally. Because of its high standards of governance through a strict code of conduct, transparency in the process of making the reports, and carrying out mandatory audits, public limited companies are very much trusted by financial institutions, investors, and regulatory bodies. 

    Public Limited Company Registration Packages

    Choose a plan that best fits your business needs. All packages include expert support and a seamless online registration process.

    Starter

    Packages starting from

    ₹ 27,999 +Govt. Fee
    (All Inclusive)

    Advanced

    Packages starting from

    ₹ 29,999 +Govt. Fee
    (All Inclusive)

    Premium

    Packages starting from

    ₹ 44,999 +Govt. Fee
    (All Inclusive)

    Private vs Public Limited

    Distinguishing the structural differences between private and public companies is a prerequisite to knowing what is best for your business. Please find the comparison chart below which will help you choose the ideal business structure:

    Feature Private Limited Public Limited
    Minimum Members 2 Members 7 Members
    Maximum Members 200 Members No Limit
    Min / Max Directors Min: 2 / Max: 15 Min: 3 / Max: 15
    Transfer of Shares Restricted (Private) Freely Transferable
    Public Subscription Cannot invite the public Can invite the public
    Name Suffix Private Limited (Pvt. Ltd.) Public Limited (Ltd.)
    Compliance Level Relatively Lower Strict / High Compliance

    Documents Required for Public Limited Company Registration

    For Directors & Shareholders

    For Registered Office

    Eligibility & Basic Requirements

    Benefits of Public Limited Company Registration

    Protection under Ltd Liability

    The shareholders of the companies are not liable for the debts or obligations of the company. They are only answerable for the value of the shares that they own and which have been paid into

    Capital from the Public

    This means that through equity and bond issue programmes a public company can offer its securities to the public.

    Gaining a high Business Trust

    To be a public limited company the company must be a strictly regulated company by the law which results in the company being trusted by both the investors and the bankers.

    Continuity of Business Activity

    Ownership change and business continuation at the same speed will not affect the company. The company's operations and existence will remain unaffected thereby ensuring a steady growth of the company.

    Easy Share Transferability

    Shares of a public company can be transferred freely, improving liquidity and investor participation.

    Better Growth & Expansion Opportunities

    Public companies can scale operations faster due to easier access to capital and market visibility.

    Step-by-Step Process of Public Limited Company Registration

    FOXTAX ensures that your public limited company registration proceeds smoothly and fully in compliance with statutory regulations through a step-by-step method:

    Preparation & Business Guidance

    Our company will look at your aims, structure of shares, as well as necessary requirements so that we will determine the best way to commence a public limited company.

    Document Gathering & Verification

    This includes directors, shareholders and registered office documents that will be checked and collected. Besides that, a proof of directors and registered office is needed.

    Name Approval

    We shall digitally sign the incorporation form and apply for a Name. With our assistance you will be easily able to apply for DIN and get a DSC for company registration in no time.

    DSC & DIN Registration

    Digital Signature Certificate (DSC) and Director Identification Number (DIN) are obtained. This step is essential if you are going to make an MCA application.

    Incorporation Filing

    We prepare and sign the MOA, AOA, and incorporation forms for submission to the MCA. MOA & AOA drafting as well as SPICe+ filing is done by our legal team.

    Certificate of Incorporation & PAN/TAN

    Upon successful processing by MCA, you will be sent a Certificate of Incorporation as well as a PAN and TAN.

    Perhaps the full company incorporation through a public limited company might take about 15-20 business days. If you want rapid company launch, you can count on the efficiency of our procedure that guarantees registration within the shortest possible time span. 

    Frequently Asked Questions (FAQs)

    How long does it take to register a Public Limited Company in India?
    Typically, registration takes 15–20 working days, subject to MCA approval.
    Is there a minimum capital requirement?
    Yes, a minimum paid-up capital may be prescribed depending on regulatory requirements.
    Can a Public Limited Company raise funds from the public?
    Yes, it can raise capital through public issues, subject to SEBI regulations.
    Is audit mandatory for Public Limited Companies?
    Yes, statutory audit is mandatory irrespective of turnover.
    Can NRIs or foreign nationals be shareholders or directors?
    Yes, subject to compliance with FEMA and other applicable laws.
    What are the annual compliance requirements?
    Annual ROC filings, statutory audits, board meetings, and income tax returns are mandatory.
    Can a Private Limited Company be converted into a Public Limited Company?
    Yes, conversion is allowed by following prescribed legal procedures.
    How can FOXTAX help after registration?
    FOXTAX provides ongoing support for ROC compliance, accounting, tax filing, and regulatory reporting.
    Which is better, OPC or PVT Ltd?
    Selecting OPC (One Person Company) or PVT Ltd (Private Limited Company) is based on the nature of business and the needs of business.
    What are the disadvantages of a PLC?
    The chief disadvantages of PLC are that, due to the nature of the type of business entity, PLCs are subject to greater regulatory requirements of statutory bodies and disclosure requirements than the other types of business forms.
    Who is eligible for PVT Ltd?
    To form a Private Limited Company (PVT Ltd) in India legally, minimum two shareholders (members) and two directors are legally required to register a company, one director of which must be an Indian resident.
    Is GST mandatory for PVT Ltd?
    It is not necessary to be registered under GST immediately after forming a company. But, if the aggregate turnover of the company during a financial year goes beyond the prescribed GST registration limit, i.e. ₹40 lakh (₹4000000) for goods and ₹20 lakh (₹2000000) for services, then it is mandatory to get registered under GST.

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