Public Limited Company Registration In India
(Price Start at $ 150 /-)
Public Limited Companies play an important role in promoting broader ownership and community participation in large-scale businesses. As businesses look to expand and become more involved in community development, registering your company becomes increasingly important to gain legitimacy, build trust, and reap benefits from shareholder engagement.
A Public Limited Company (PLC) stands out as a corporate body with limited member liabilities that issues shares to the public. Unlike private limited companies, PLCs can have an unlimited number of shareholders and can hence raise capital by offering shares to the public through stock exchanges. This structure makes PLCs an ideal choice for small and medium businesses looking to raise equity capital from the public. Although decision-making involves a board of directors, the ultimate authority rests with the shareholders who have voting rights. PLCs are subject to strict regulatory standards to protect the interests of public shareholders, reflecting the importance of compliance and adherence to legal standards.
At Seedling, our aim is to simplify public limited company registration and its related compliance challenges by providing you simple, fast, and affordable support. Our knowledgeable staff has a deep understanding of the rules and regulations governing Indian companies and will guide you through every step of the process. Their expertise allows us to deliver solutions tailored to your specific needs, ensuring that the formation of your public limited company is closely aligned with your corporate objectives. Seedling recognizes the importance of PLCs in shaping India’s corporate landscape and seeks to contribute to the success of its clients by streamlining their registration process
Benefits of Public Limited company registration in India
There are several advantages of registering as a Public Limited Company:
- Distinct Legal Entity: A public limited company is recognized as a distinct legal entity independent of its shareholders. It holds its own PAN, bank account, approvals, contracts, licenses, assets, and liabilities.
- Diverse Funding Sources: It can secure funds from both individuals and financial institutions. Funding options include equity shareholding, preference shareholding, or debentures.
- Simplified Share Transfer: In contrast to private limited companies, where shares cannot be transferred without the consent of fellow members, shares in a Public Limited Company can be effortlessly transferred to other legal entities, whether individual or organizational, within India or internationally.
- Perpetual Existence: A PLC possesses perpetual existence. PLCs often have more flexibility in making new Director appointments or changes to ensure seamless business continuity.
- Limited Liability Protection: Shareholders in a Public Limited Company enjoy limited liability protection. In cases of unforeseen liabilities, the impact is restricted to the company and does not adversely affect shareholders. Personal assets of all members, directors, and shareholders are protected from seizure by banks, creditors, or government entities.
- Board-Governed Management: Governance of the company is vested in the Board of Directors, elected by the shareholders.
- Enhanced Visibility: Listing on a stock market attracts attention from mutual funds, hedge funds, and other traders, potentially opening up better business prospects. This visibility enhances the credibility of registered PLCs compared to other limited companies.
- Risk Diversification: By selling shares to the public, a public limited company disperses the unsystematic risks of the market.
- Loan Preference: Public limited companies are often preferred by banks for loans compared to other business structures, providing them with advantageous financing options.
What are the Eligibility criteria for Public Limited company registration in India?
- Minimum 7 shareholders are required to incorporate a public limited company.
- At least three members must be the directors of the company.
- The company’s name (with “Limited” as the suffix) and its main object must be in accordance with the provisions of the Companies Act and its Rules.
What are the Documents required for Public Limited company Registration in India?
Our experts will collect the below mentioned documents from you and file them with the application for incorporation of a public limited company:
- Identity Proof of all the directors and shareholders (Aadhar card, Driving License, PAN card, or Voter ID).
- Address Proof and PAN card details of all shareholders and directors.
- Residential proof of the place of business in the form of utility bills (such as telephone, electricity bill, water, or gas bills) not older than 2 months.
- A No Objection Certificate from the landlord of the business place.
- Digital Signature Certificate (DSC) and Director Identification Number (DIN) of all directors.
- Memorandum of Association (MOA) and Articles of Association (AOA).
What is the Procedure to register a Public Limited Company in India?
- Obtain DSC and DIN: Since the registration process is entirely online, all proposed directors must obtain digital signatures and DINs for filing forms on the Ministry of Corporate Affairs (MCA) site. Obtaining a DSC involves a 3 step document, video, and phone verification.
- Name approval: The company’s name must be submitted to the Registrar Of Companies (ROC) for approval through the Simplified Proforma for Incorporating Company Electronically Plus (SPICe) Part A form of the MCA.
- Office registration: The office address must be properly registered with the ROC in Form INC-22 as all business correspondence will be made to this address.
- MOA and AOA: The company’s MOA and AOA must be drafted and submitted to the ROC for verification.
- Company Registration: The applicant must submit the SPICe+ INC-7 form along with the required documentation. Once the application has been reviewed and approved by the authorities, a Certificate of Incorporation will be issued, which includes the Certificate of Incorporation (COI).
- Obtain PAN and TAN: Our experts will then apply for Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) for the newly incorporated company. using which the entity must open a bank account.
- Commence operations: The business must apply for a certificate of commencement within 180 days of the COI stating that all the subscribers have paid the subscription money.
How much time is required to register a public limited company in India?
The registration process typically takes approximately 10 to 12 working days, subject to the timely submission of required documents and approvals from regulatory authorities. The timeline may vary based on the complexity of the application and the efficiency of the registration process.
How can Seedling help you with Public Limited Company registration in India?
At Seedling, we take pride in offering comprehensive assistance for Public Limited Company registration in India. Our experienced team navigates through every step, from choosing an appropriate company name that aligns with the legal guidelines, to obtaining DIN and DSC and facilitating the submission of necessary documents. We go beyond mere procedural support, prioritizing accuracy in every detail, including the preparation and filing of necessary e-forms. Seedling stands as your relia
Most common question about our services
What is the minimum capital requirement for registering a Public Limited Company in India?
As per the latest regulations, there is no specific minimum capital requirement for registering a Public Limited Company. The Companies Act, 2013, removed the concept of authorized capital in 2015, allowing companies to determine their capital structure based on their needs. The capital can be decided by the board of directors and shareholders, after considering the entity’s financial requirements.
What are the compliance requirements for Public Limited Companies in India?
Key compliance aspects include conducting a minimum of four board meetings annually, appointing a Cost Auditor within specified timelines, filing returns of deposits via Form DPT 3, appointing CFO or CS or CEO within 30 days of AGM, conducting AGM in compliance with Section 96 of the Companies Act, and ensuring the proper functioning of the CSR Committee. Directors are required to disclose financial interests via Form MBP 1, and listed companies have additional
Is every Public Limited Company listed on the stock exchange?
No, not every Public Limited Company is listed. While some PLCs opt for stock market listing to raise capital and provide liquidity to shareholders, others remain unlisted, operating privately. The decision to go public depends on various factors, including the company's growth strategy, capital requirements, and the desire to offer shares to the public.
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