Public Limited Company Registration
Public Limited Company Registration.
A Public Limited Company (PLC) is a type of business entity that can offer its shares to the general public through stock exchanges. It is governed by the Companies Act, 2013 in India and requires a minimum of three directors and seven shareholders to get started. This structure is ideal for large-scale businesses looking to raise capital from the public.
The registration process involves obtaining a Digital Signature Certificate (DSC), Director Identification Number (DIN), name approval from the Ministry of Corporate Affairs (MCA), and filing incorporation documents like the Memorandum of Association (MoA) and Articles of Association (AoA). Once approved, the company receives a Certificate of Incorporation and a Corporate Identity Number (CIN).
A Public Limited Company enjoys various benefits such as easy access to funding, improved credibility, and limited liability for its shareholders. However, it must also adhere to strict regulatory compliances, including regular disclosures and audits. This structure is most suitable for businesses with significant growth ambitions and a need for large-scale investment.
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Benefits of Public Limited Company Registration.
Access to Capital
A Public Limited Company can raise funds by issuing shares to the general public through stock exchanges, attracting a wide range of investors.Limited Liability
Shareholders enjoy limited liability, meaning their personal assets are protected, and they are only responsible for the company’s debts up to the amount invested.Enhanced Credibility
Being publicly listed increases the company’s reputation and trustworthiness, which can attract more business opportunities, partnerships, and customers.
Who can apply for Public Limited Company Registration.
Minimum of 7 Shareholders
At least seven individuals or entities are required to act as shareholders in the company.Minimum of 3 Directors
A minimum of three directors is necessary, with at least one being an Indian resident.Indian or Foreign Nationals/Entities
Both Indian and foreign individuals or corporate entities can apply, provided they meet the legal requirements under the Companies Act, 2013.
Documents required for Public Limited Company Registration.
| Document | Details |
|---|---|
| PAN Card of Directors/Shareholders | Mandatory identity proof for all Indian directors and shareholders. |
| Address Proof of Directors | Aadhaar Card, Voter ID, Passport, or Driving License with the current residential address. |
| Identity Proof of Directors | Passport, Voter ID, or Driving License (used for additional verification). |
| Passport (for Foreign Nationals) | Mandatory identity proof for foreign directors/shareholders; must be notarized or apostilled. |
| Photographs | Recent passport-sized color photographs of all directors and shareholders. |
| Digital Signature Certificate (DSC) | Required for digitally signing electronic forms during the registration process. |
| Director Identification Number (DIN) | Unique identification number for each director; applied through the SPICe+ form or separately if already allotted. |
| Memorandum of Association (MoA) | Defines the company’s name, objectives, and scope of business activities. |
| Articles of Association (AoA) | Outlines the internal rules and regulations for managing the company. |
| Proof of Registered Office Address | Utility bill (not older than 2 months), property tax receipt, or other valid documents showing the company’s official address. |
| NOC from Property Owner | No Objection Certificate from the property owner, if the registered office is on rented premises. |
| Rent Agreement or Ownership Proof | Document proving legal right to use the registered office address — either rent agreement or ownership document. |
Process of Public Limited Company Registration.
FAQs on Public Limited Company Registration.
A Public Limited Company is ideal for large business entities as it enables easier access to loans and public funding. It enhances the company’s credibility and builds a strong business image in the eyes of financial institutions, suppliers, and potential clients. Additionally, it allows the company to reach a wider audience and expand its market presence.
A Public Limited Company must have a minimum of 3 directors and can have up to 15 directors. It requires at least 7 shareholders, with no upper limit on the number of shareholders.
Yes, a person can be both a director and a shareholder in a Public Limited Company. This is possible because the company is a separate legal entity, distinct from its owners and managers.
As per the Companies Act, 2013, there is no mandatory minimum capital requirement for incorporating a Public Limited Company. However, it is generally preferred and advised to start with a minimum authorized capital of INR 5 lakhs. This helps in maintaining credibility and meeting basic compliance needs during the initial phase of business operations.
Yes, an NRI or a Foreign National can become a shareholder and director in a Public Limited Company after obtaining a Director Identification Number (DIN). However, as per the Companies Act, 2013, at least one director must be a resident of India. This ensures local representation and compliance with Indian regulatory requirements.