Public Limited Company Registration in India
Guidance on registering a Public Limited Company in India.
Unlock Growth Potential with a Public Limited Company
Access capital markets and expand your shareholder base.
Get Started TodayWhat is a Public Limited Company in India?
A Public Limited Company in India is a corporate structure where ownership is distributed through shares available to the public. Governed by the Companies Act of 2013, it requires a minimum of 7 shareholders and 3 directors. Public limited company can raise capital by selling shares on stock exchanges, adhering to rigorous regulatory standards to ensure transparency and accountability.
Key Features of a Public Limited Company
- Limited Liability: Shareholders’ liability is limited to their investment.
- Minimum Capital Requirement: No stipulated minimum capital requirement.
- Perpetual Succession: Company existence continues despite changes in shareholders.
- Separate Legal Entity: Company is distinct from its shareholders.
- Transferability of Shares: Shares are freely transferable (with some restrictions).
- Public Subscription of Shares: Can raise capital through IPOs.
- Minimum number of Directors: Minimum of 3 directors.
- Minimum Shareholders/Members: Minimum of 7 shareholders.
Difference between Private Limited Company and Public Limited Company
| Aspect | Public Limited Company | Private Limited Company |
|---|---|---|
| Number of Members | Minimum: 7 (No maximum limit) | Minimum: 2 (Maximum: 200) |
| Transferability of Shares | Shares can be traded openly on the stock market according to SEBI regulations. | Shares cannot be listed on any stock exchange or traded in the open market. |
| Issue of Prospectus | Mandatory to issue and file a prospectus according to Companies Act, 2013 guidelines. | Cannot issue a prospectus; instead, a statement in lieu of a prospectus is issued. |
| Subscription from the Public | Allowed to accept subscriptions from the general public to issue shares or debentures for capital raising. | Not permitted to accept subscriptions from the general public for issuing shares or debentures to raise capital. |
| Allotment Subject to Minimum Subscription | Restricted from allotting shares until the minimum subscription as per prospectus is achieved. | Free to allot shares as per their articles of association without such restrictions. |
| Directors | Minimum: 3 | Minimum: 2 |
| Appointment of Directors | Appointment of one Director can be done through a single resolution. | Two or more Directors can be appointed through a single resolution. |
| Retirement of Directors | At least 2/3 Directors must retire by rotation annually, with at least 1/3 retiring each year. | No such restrictions on the retirement of Directors by rotation. |
| Quorum | – 1000 or fewer members: 5 members – More than 1000 but less than 5000: 15 members – More than 5000: 30 members |
Minimum of 2 members present is required to constitute a quorum for a meeting. |
| AGM | AGM must be held at the registered office or any place in the city where the registered office is situated. | AGM can be held anywhere. |
| Meeting | Statutory meetings are mandatory as per section 165 of the Companies Act, 2013. | No requirement for a statutory meeting as per Companies Act, 2013 provisions. |
Steps to Register a Public Limited Company in India
- Digital Signature Certificate (DSC): Obtain DSCs for the proposed directors.
- Name Approval: Select a unique name and get it approved by the MCA using web form RUN.
- Document Submission: Prepare and submit MoA and AoA along with other necessary documents.
- Filing with RoC: File web form INC-32 along with MOA, AOA and KYC documents with the RoC.
- Certificate of Incorporation: Receive the Certificate of Incorporation.
- Obtain PAN/TAN: PAN & TAN will be issued along with the incorporation certificate.
Required Documents to register a Public Limited Company in India
- PAN Card of Proposed Directors and Shareholder
- Identity proof (Passport, Aadhar card, Driving License or Voter ID)
- Colored Passport size photo of Proposed Directors and Shareholder
- Residential Proof (Electricity Bill, Telephone Bill or bank passbook)
- Proof of registered office (Rent/Lease agreement or NOC with electricity bill)
- Memorandum of Association (MOA), Articles of Association (AOA) & Directors details (DIR-2)
Why choose us to register your Public Limited Company in India?
- Expertise: Experienced professionals in company registration and compliance.
- Comprehensive Support: End-to-end support throughout the registration process.
- Efficiency: Streamlined processes for quick and hassle-free registration.
- Transparent Pricing: Competitive and transparent pricing with no hidden charges.
- Customer Satisfaction: Prioritizing your needs and delivering the best services.
Post-incorporation compliance for a Public Limited Company in India
- Board Meetings: First meeting within 30 days, minimum four annually.
- Statutory Registers: Maintain registers of members, directors, etc.
- Share Certificates: Issue within two months of incorporation.
- Commencement of Business: File declaration within 180 days.
- Annual General Meeting (AGM): Hold within six months of financial year-end.
- Financial Statements: Prepare and file with the RoC.
- Income Tax Filings: File annual returns and comply with tax audit if applicable.
- Other Compliances: Adhere to other relevant laws and regulations.
Conclusion
Establishing a Public Limited Company (PLC) presents a significant opportunity for businesses to access capital markets and broaden their shareholder base. With the flexibility to raise funds from the public through stock exchanges, PLCs can fuel their growth and expansion initiatives. However, it’s crucial for PLCs to adhere to stringent regulatory requirements, maintain transparency, and uphold corporate governance standards to build trust among investors and stakeholders. By leveraging the advantages of limited liability, perpetual succession, and separate legal entity status, PLCs can embark on a path of sustainable growth and long-term success in the dynamic business landscape.
FAQ
What is a public limited company?
A public limited company is a business structure where shares can be offered to the public and traded on the stock exchange, providing limited liability to shareholders.
What are the requirements to register a public limited company?
You need at least 7 shareholders, 3 directors (one Indian resident), a unique name, and a registered office address.
What are the benefits of a public limited company?
It allows raising funds from the public, offers limited liability, enhances credibility, and provides better access to capital markets.
What are the compliance requirements for a public limited company?
Regular filings with the Registrar of Companies (RoC), holding AGMs, maintaining statutory records, and adhering to SEBI regulations for listed companies.
Can a public limited company raise funds easily?
Yes, it can raise capital through public share issuance, debentures, or loans, making it ideal for large-scale businesses.
