Key Advantages
- Limited Liability Coverage – Personal assets of shareholders remain protected
- Enhanced Market Reputation – Builds stronger credibility and trust among stakeholders
- Effortless Fundraising – Easy access to equity capital and financial support
- Stock Exchange Listing – Enables public trading of shares via IPOs
- Attractive for Investors – Preferred by institutional and retail investors alike
Minimum Requirements
- At least 3 Directors and 7 Shareholders
- No restriction on minimum capital
- Maximum 15 Directors allowed
- One director must be a resident of India
What is a Public Limited Company (PLC)?
A Public Limited Company is a business entity that is permitted to raise funds by offering its shares to the general public. As defined under the Companies Act, 2013, a PLC has a separate legal identity, limited liability for its members, and stricter compliance obligations.
Such companies may issue shares via Initial Public Offerings (IPO) or get listed on stock exchanges to raise public capital. Anyone can buy these shares, and the company must maintain transparency in its financial disclosures.
Who Should Opt for a Public Limited Company?
Public companies are ideal for medium to large-scale enterprises planning to scale their business operations through public investment. Because of the transparency, credibility, and access to capital, this structure is popular among growing businesses aiming for expansion.
Key Features of a Public Limited Company
- Minimum of 3 Directors as mandated by law
- No mandatory capital requirement to start
- Mandatory issuance of a prospectus detailing business affairs
- Company name must end with “Limited”
- Shareholder liability is limited to the value of their shares
Why Register a Public Limited Company?
- Larger Capital Base – Capital raised from public investors fuels business growth
- Stronger Visibility – Listing on stock markets increases brand awareness
- Risk Distribution – Shareholding divides market risks among public investors
- Expansion Opportunities – Higher capital, visibility, and risk-sharing promote sustainable business growth
Documents Needed for Registration:
Personal Documents of Directors & Shareholders
- Self-attested PAN card
- Passport-size photographs (2 per person)
- Identity proof (Passport, Voter ID, Aadhaar, or Driving License)
- Address proof (Recent utility bill, mobile/telephone bill, or bank statement – not older than 2 months)
Registered Office Proof
- Owned Property:
- Utility bill (not older than 2 months)
- Title deed
- NOC from property owner
- Rented/Leased Premises:
- Rent/lease agreement
- Utility bill
- NOC from landlord
Other Essential Information
- Authorized & paid-up capital structure
- Number of shares subscribed by each member
- Place of birth and duration of residence
- Occupation and qualification of directors/members
- Email ID and contact number
- Proposed business activities of the company
Step-by-Step Registration Process (SPICe+ System):
As per the amendment effective from 23rd February 2020, the Ministry of Corporate Affairs (MCA) has introduced SPICe+, an integrated form for online company incorporation.
Step 1: Name Reservation
Reserve your company name using SPICe+ Part A via the MCA portal. Ensure that the name is available and not infringing on any existing trademark.
Step 2: Fill SPICe+ Part B
Enter company details, including directors, shareholders, registered address, and capital information in Part B of the SPICe+ form.
Step 3: PDF Generation & DSC
Convert the completed form to PDF format and digitally sign using DSCs of the proposed directors and subscribers.
Step 4: Upload on MCA
Upload the signed SPICe+ form and linked forms on the MCA portal for processing.
Step 5: INC-9 Declaration
INC-9 declarations for first directors and subscribers will be auto-generated and submitted electronically unless:
- Number of directors/subscribers exceeds 20
- Any individual lacks both PAN and DIN
Recent Regulatory Changes:
Key Amendments:
- SRN not required for names reserved in SPICe+ Part A
- Mandatory ESIC & EPFO Registration for companies incorporated post 23rd Feb 2020
- Professional Tax Enrollment is compulsory in Maharashtra
- Opening of Bank Account must be applied through AGILE-PRO web form
- Auto-generation of INC-9 in PDF form for e-submission
Use of e-MoA (INC-33) & e-AoA (INC-34)
Mandatory for companies with up to 7 subscribers under these conditions:
- Individual subscribers are Indian nationals
- Foreign nationals with valid DIN, DSC, and business visa
- Indian-based corporate subscribers
When to Use Physical MoA & AoA Copies
| Scenario | Required Forms |
|---|---|
| Non-Indian entity as a first subscriber | SPICe+ (INC-32) + notarized MoA & AoA |
| Indian company as a subscriber | SPICe+ + e-MoA (INC-33) & e-AoA (INC-34) |
| Indian subscriber not a director | SPICe+ + e-MoA & e-AoA |
| Indian subscriber-cum-director | SPICe+ + e-MoA & e-AoA |
| Foreign subscriber (DIN + valid visa) | SPICe+ + e-MoA & e-AoA |
| Foreign subscriber (DIN but no visa) | SPICe+ + notarized MoA & AoA |
| Foreign subscriber without DIN | SPICe+ + apostilled MoA & AoA |
Note: For more than 7 subscribers, MoA and AoA must be submitted as physical attachments in SPICe+.
Statutory Returns Filing
Companies registered with EPFO/ESIC must file statutory returns only if the applicable thresholds are exceeded.
Final Thoughts
A Public Limited Company offers all the benefits of a private company, along with the ability to freely transfer shares and attract unlimited shareholders. With increased regulatory transparency and access to public capital, it is a powerful structure for businesses aiming to scale and grow.