Public Limited Company Registration

Register a Public Limited Company is a business entity that is owned by shareholders and offers shares to the public through a stock exchange. Unlike a private limited company, a public limited company has no restrictions on the transfer of its shares, and it is subject to more stringent regulations. It is generally chosen by larger businesses looking to raise capital through public investments.

Features of a Public Limited Company:

1. Limited Liability: Shareholders’ liability is limited to the amount they have invested in the company, protecting their personal assets.
2. Separate Legal Entity: A public limited company has its own legal identity, distinct from its shareholders and directors. It can own property, sue, and be sued.
3. Share Capital: The company can raise funds by issuing shares to the public through an initial public offering (IPO). There is no upper limit to the number of shareholders.
4. Minimum Number of Shareholders: A public limited company must have at least 7 shareholders, with no maximum limit.
5. Directors: It must have a minimum of 3 directors (with a maximum of 15).
6. Stock Exchange Listing: Public limited companies can list their shares on stock exchanges, providing liquidity to shareholders and access to capital.
7. Strict Compliance: A public limited company is subject to stringent regulations under the Companies Act, 2013, and must adhere to governance standards, financial disclosures, and reporting requirements.
8. Perpetual Succession: The company’s existence is independent of changes in its ownership or management.

Benefits of a Public Limited Company:

• Access to Capital: The company can raise large amounts of capital through public share offerings and stock market listings.
• Increased Credibility: Being listed on a stock exchange enhances the company’s reputation and trustworthiness with investors, partners, and customers.
• Liquidity for Shareholders: Shareholders can buy and sell their shares on the open market, providing liquidity.
• Attracts Investors: Public companies can attract institutional investors and large-scale funding for expansion and growth.

Requirements for Incorporating a Public Limited Company:

1. Minimum 7 Shareholders and 3 Directors.
2. Unique Company Name: Must be approved by the Ministry of Corporate Affairs (MCA).
3. Registered Office: A physical address for the company in India.
4. Documents: Memorandum of Association (MOA), Articles of Association (AOA), identity and address proofs of directors, and PAN card of shareholders and directors.
5. IPO: If the company wants to list its shares publicly, an Initial Public Offering (IPO) is required.

Process of Forming a Public Limited Company:

1. Obtain Digital Signature Certificate (DSC) for the directors.
2. Apply for Director Identification Number (DIN).
3. Register the Company Name with the Ministry of Corporate Affairs (MCA).
4. Prepare MOA and AOA and submit them to MCA.
5. Obtain Certificate of Incorporation after approval.
6. If the company plans to go public, it must comply with the Securities and Exchange Board of India (SEBI) guidelines and list its shares on a stock exchange.

Documents Required for Public Limited Company Registration:

• Identity Proof and Address Proof of the directors and shareholders.
• PAN Card of directors and shareholders.
• MOA and AOA (Memorandum and Articles of Association).
• Registered Office Address Proof (e.g., utility bill).
• Incorporation Fees as per MCA guidelines.