Public Limited Company
Simplifying the process of company incorporation for your business.
What is a Public Limited Company ?
A Public Company is a type of business entity registered under the Companies Act, 2013, that allows it to sell shares to the public and raise capital through stock exchanges or private investments. Unlike private companies, a public company has no restrictions on the maximum number of shareholders, making it an ideal structure for large-scale businesses seeking expansion and public funding.
Public companies are typically listed on stock exchanges such as the NSE or BSE, where their shares can be freely traded. They must comply with strict regulatory requirements, including financial disclosures, audits, and corporate governance norms set by the Securities and Exchange Board of India (SEBI) and the Ministry of Corporate Affairs (MCA). These companies benefit from greater access to capital but also face increased compliance obligations and transparency requirements.
Why Choose Public Company Registration?
- Minimum 7 Shareholders & 3 Directors – No upper limit on the number of shareholders.
- Can Raise Capital from the Public – Through IPOs (Initial Public Offerings), private placements, or stock markets.
- Limited Liability – Shareholders’ liability is limited to their investment in the company.
- Separate Legal Entity – Can enter into contracts, own property, and sue or be sued in its name.
- Higher Compliance & Regulatory Requirements – Must adhere to SEBI, MCA, and Companies Act regulations.
- Perpetual Succession – Continues to exist despite changes in management or ownership.
- Mandatory Financial Disclosures – Must publish annual reports, financial statements, and audit reports for transparency.
Documents Required for Public Company Registration
- For Directors & Shareholders:
- PAN Card (Mandatory for all directors & shareholders)
- Aadhaar Card, Voter ID, or
- Passport (As identity proof)
- Passport-size Photographs
- DIN (Director Identification Number) & DSC (Digital Signature Certificate)
- For Registered Office:
- Electricity Bill, Water Bill, or Property Tax Receipt (As address proof)
- Rental Agreement & NOC from Owner (If rented)
- Property Sale Deed (If owned)
- Additional Documents:
- Memorandum of Association (MoA) & Articles of Association (AoA) (Defining objectives & rules)
- Declaration by Directors (INC-9 Form)
- Bank Statement or Canceled Cheque (For company bank account setup)
Mandatory Criteria for Public Company Registration
- Minimum 7 Shareholders & 3 Directors – At least one director must be a resident of India.
- Minimum Capital Requirement – No minimum capital is required, but higher capital improves credibility.
- Company Name Approval – Must be unique and comply with MCA naming guidelines.
- Registered Office Address – Must provide a valid business address for legal communication.
- Mandatory Compliance & Filings – Must comply with SEBI, MCA, and Companies Act regulations.
Steps to Register
Obtain Digital Signature Certificate (DSC)
All directors must get a DSC to sign electronic documents for company registration.
Apply for Director Identification Number (DIN)
Directors must obtain DIN through the MCA portal.
Name Reservation (RUN Form)
Apply for name approval using the Reserve Unique Name (RUN) service on MCA.
The name must comply with Companies Act naming guidelines.
Draft MoA & AoA
Memorandum of Association (MoA) – Defines the company’s objectives.
Articles of Association (AoA) – Outlines internal management rules.
File Incorporation Documents (SPICe+ Form)
Submit incorporation documents through the SPICe+ (INC-32) form with MoA, AoA, and required details.
Obtain Incorporation Certificate
Upon approval, MCA issues a Certificate of Incorporation (COI) with a Company Identification Number (CIN).
Apply for PAN, TAN & Bank Account
Apply for the company’s PAN & TAN through MCA. Open a current bank account in the company’s name.
Register with SEBI (For Listed Companies)
If the company plans to go public, it must register with SEBI before issuing shares.
Issue Shares & Raise Capital
The company can issue shares through IPOs or private placements to raise funds.
Ensure Compliance & Annual Filings
File annual returns, financial statements, and tax filings to remain compliant.