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Overview
A Public Limited Company (PLC) is a business entity that offers its shares to the general public and is listed on a stock exchange or intends to be listed. It is governed by the Companies Act, 2013 and must adhere to stringent regulatory and compliance norms. PLCs are suitable for large businesses that need to raise capital from the public and scale operations nationally or globally.
A minimum of 3 directors, 7 shareholders is required to register a Public Limited Company in India, (There is no mandatory minimum paid-up capital requirement as per the Companies (Amendment) Act, 2015).
The company enjoys a separate legal identity, limited liability, and can raise funds through public issues and debentures.
Why
Registering a PLC offers multiple advantages:
- Access to Capital: Can raise funds from the public via IPOs and rights issues.
- Limited Liability: Shareholders liability is limited to their shareholding.
- Separate Legal Entity: Company has a distinct identity from its owners.
- Enhanced Credibility: A PLC has higher market and investor credibility.
- Share Transferability: Shares can be easily transferred.
- Perpetual Succession: Company continues even if members change.
- Growth Potential: Suitable for large-scale operations and expansion.
- Listing Benefits: Can be listed on stock exchanges like NSE or BSE.
Process
The process is as follows:
1. Digital Signature Certificate (DSC) for all proposed directors.
2. Director Identification Number (DIN) for directors via SPICe+ Form.
3. Name Approval through the RUN or SPICe+ Part A service.
4. Filing Incorporation Documents via SPICe+ Part B including:
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- AGILE-PRO (for GST, EPFO, ESIC)
- Form INC-9 and DIR-2
5. Obtain Certificate of Incorporation (COI) from the ROC.
6. Apply for PAN, TAN, and Bank Account.
7. Commencement of Business filing within 180 days after incorporation.
Documents
For Directors and Shareholders:
- PAN Card (Mandatory)
- Aadhaar Card/Voter ID/Passport/Driving License
- Passport-size photographs
- Address Proof (Bank Statement/Utility Bill not older than 2 months)
For Registered Office:
- Rent Agreement (if rented) or NOC from owner
- Electricity Bill/Water Bill/Property Tax receipt (not older than 2 months)
Fee
The cost of Public Limited Company registration depends on various factors like professional fees, state stamp duty, and number of directors. On average:
- Government Fees: It depends upon the authorised capital and the state of registration. It may vary case to case.
Note: Fees increase with higher authorized capital or additional services.
Timeline
The registration process generally takes 15 to 25 working days, depending on document verification and MCA approvals. Delays may occur if resubmissions or clarifications are requested.
FAQs
A Public Limited Company (PLC) is a type of company that can offer its shares to the general public through stock exchanges or public offerings. Unlike a Private Limited Company, a PLC must have at least 7 shareholders and 3 directors, and it has stricter compliance norms under the Companies Act, 2013.
Any group of individuals (Indian or foreign) can register a Public Limited Company in India, provided they meet the minimum requirement of 7 shareholders and 3 directors, with at least one director being an Indian resident.
No. Listing on a stock exchange (like NSE or BSE) is optional. A Public Limited Company can remain unlisted and still operate as a public company by complying with the applicable provisions under the Companies Act.
There is no statutory minimum paid-up capital requirement for incorporating a Public Limited Company, following the Companies (Amendment) Act, 2015. However, companies usually choose an appropriate amount based on their business needs and funding plans.
Post-registration, a PLC must:
- File Form INC-20A (Declaration for Commencement of Business) within 180 days.
- Appoint a statutory auditor.
- Maintain statutory registers.
- Hold Annual General Meetings. (AGMs)
- File annual returns (MGT-7, AOC-4) with the ROC.
- Conduct board meetings as per legal requirements.
Yes, foreign nationals and NRIs can be shareholders or directors in a Public Limited Company in India, subject to Foreign Direct Investment (FDI) guidelines and the condition that at least one director must be an Indian resident.
Yes, a Private Limited Company can be converted into a Public Limited Company by passing a special resolution, altering the MOA and AOA, and filing the necessary forms with the Registrar of Companies (ROC).
Typically, the registration process takes around 15 to 25 working days, depending on the timely submission of documents, approvals from MCA, and name availability.
Major benefits include:
- Ability to raise funds from the public
- Limited liability protection
- Enhanced business credibility and transparency
- Wider access to capital markets and investors
- Separate legal identity from shareholders
Yes. Every Public Limited Company must appoint a statutory auditor within 30 days of incorporation. The auditor ensures that financial statements are accurate and comply with accounting and legal standards.
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