Accelerate your growth with Public Limited Company Registration!
The establishment and operation of a public limited company are governed by the Companies Act, 2013.
A key characteristic of a public limited company is its ability to offer shares to the general public, coupled with limited liability for its shareholders. Individuals can acquire its stock either through an Initial Public Offering (IPO) or by trading on the stock market. Public limited companies are subject to stringent regulations, including the mandatory disclosure of their true financial status to their shareholders.
Key features of Public Limited Company
- Board of Directors: a public limited company is mandated to appoint a minimum of 3 directors and can have a maximum of 15. If more than 15 directors required, a special resolution may be passed.
- Limited Liability: Shareholder’s losses are confined to their shareholding, their personal assets remain protected. However, this safeguard doesn’t cover wrongful or illegal acts, individuals remain personally accountable for their misconduct.
- Share Capital Requirements: No prescribed minimum paid-up capital. Must declare an authorized share capital of at least ₹1,00,000.
- Mandatory Prospectus: Required to issue a detailed prospectus when offering shares to the public, disclosing the company’s financials, objectives, and risks. Private companies aren’t bound by this rule since they cannot invite public subscriptions.
- Name Convention: Legally obliged to append “Limited” to the end of the company’s name.
Checklist / Documents required for registration of Public Limited Company:
- Government-issued identity proof for every director and shareholder
- Official address verification for all directors and shareholders
- Valid PAN cards of each director and shareholder
- A recent utility bill is required and it serves as proof of the company's registered office address.
- No Objection Certificate from the property owner of the proposed office
- Director Identification Numbers (DIN) for all appointed directors
- Digital Signature Certificates (DSC) for each director
- Memorandum of Association (MoA) outlining the company’s objectives
- Articles of Association (AoA) detailing internal governance rules
A Public Limited Company is a type of business entity that allows the public to purchase its shares. It is generally listed on a recognized stock exchange and offers limited liability protection to its shareholders.
Key benefits include:
- Access to funding by issuing shares to the public
- Greater trust and recognition in the market
- Eligibility for stock market listing
- Broader visibility and expansion opportunities
The usual documentation includes:
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- PAN cards of directors and shareholders
- Proof of registered business address
- Identity proof of all directors and shareholders
- Digital Signature Certificates (DSC) for all proposed directors
A Public Limited Company is advised to have a minimum paid-up capital of ₹5 lakhs, however, it is not mandatory.
A Public Limited Company must have a minimum of three directors. While the maximum number of directors is generally capped at 15, this limit can be increased by passing a special resolution.
Yes, foreign individuals or entities can act as directors or shareholders, provided all applicable legal and regulatory conditions are fulfilled.
Some of the key compliance duties include:
- Filing annual financial statements and returns
- Conducting Annual General Meetings (AGMs)
- Maintaining statutory registers and company records
- Adhering to taxation laws and regulatory filings
- Publicly disclosing financial and operational information etc.
Listing offers several advantages:
- Greater public exposure and investor confidence
- Access to a wider pool of capital
- Enhanced brand image and trustworthiness
- Easier transferability and liquidity of shares