Public Limited Company Registration in India
Public Limited Company Registration in India – Complete Guide
A Public Limited Company (PLC) is a corporate structure suitable for businesses looking to raise capital from the public, gain higher credibility, and enjoy limited liability. It requires a minimum of 3 directors, 7 shareholders, and can be listed on the stock exchange to raise funds.
📌 Key Features of a Public Limited Company
✔ Separate Legal Entity – Distinct from shareholders.
✔ Limited Liability Protection – Shareholders’ liability is limited to their shareholding.
✔ Public Fundraising – Can issue shares to the general public.
✔ Stock Exchange Listing – Can be listed on NSE/BSE for IPO.
✔ Perpetual Succession – Company continues even if directors/shareholders change.
1️⃣ Eligibility Criteria for Public Limited Company Registration
✔ Minimum 3 Directors & 7 Shareholders (Can be the same individuals).
✔ No Maximum Limit on the number of shareholders.
✔ Minimum Paid-Up Capital – ₹5 lakh (though no mandatory minimum in new rules).
✔ DIN & DSC Required for all directors.
✔ Registered Office Address in India (Residential/commercial).
✔ Approval of Unique Company Name from MCA.
2️⃣ Step-by-Step Process for Public Limited Company Registration
Step 1: Obtain Digital Signature Certificate (DSC)
🔹 Required for all directors & shareholders.
🔹 Issued by eMudhra, NSDL, or Sify.
Step 2: Apply for Director Identification Number (DIN)
🔹 File SPICe+ Form on the MCA portal.
Step 3: Name Reservation (RUN Application)
🔹 Choose a unique name & get approval from MCA.
🔹 Format: “XYZ Limited”.
Step 4: File for Incorporation (SPICe+ Form)
🔹 Attach necessary documents: PAN, Aadhaar, Address Proof, MoA, and AoA.
Step 5: Draft & File Memorandum of Association (MoA) & Articles of Association (AoA)
🔹 Defines the company’s objectives & operational rules.
Step 6: PAN, TAN & Bank Account Opening
🔹 PAN & TAN automatically generated during incorporation.
🔹 Open a corporate bank account.
Step 7: GST & Other Registrations (If Required)
🔹 GST is mandatory if turnover exceeds ₹40 lakh for goods or ₹20 lakh for services.
3️⃣ Cost of Public Limited Company Registration
| Expense | Approximate Cost (₹) |
|---|---|
| Digital Signature Certificate (DSC) | ₹1,000 – ₹2,000 per director |
| Director Identification Number (DIN) | ₹500 – ₹1,000 per director |
| Name Approval (RUN) | ₹1,000 |
| MoA & AoA Drafting | ₹2,000 – ₹4,000 |
| Professional Fees (CA/CS) | ₹10,000 – ₹30,000 |
| MCA Government Fees | ₹7,000 – ₹25,000 |
| Stamp Duty & Notary Charges | ₹3,000 – ₹10,000 |
💡 Total Cost: ₹30,000 – ₹80,000 (varies based on share capital & state).
4️⃣ Time Duration for Public Limited Company Registration
| Process | Estimated Time |
|---|---|
| DSC & DIN Application | 1-2 days |
| Name Reservation | 2-3 days |
| SPICe+ Form Filing & Approval | 5-7 days |
| MoA & AoA Drafting | 2-3 days |
| PAN, TAN & Bank Account Setup | 2-4 days |
💡 Total Duration: 10-20 days (subject to MCA processing time).
5️⃣ Compliance Requirements for Public Limited Companies
✔ Annual Compliance & Filings:
| Compliance | Form | Due Date |
|---|---|---|
| Annual Return | MGT-7 | Within 60 days of AGM |
| Financial Statements | AOC-4 | Within 30 days of AGM |
| Income Tax Return | ITR-6 | September 30 |
| GST Return (if applicable) | GSTR-1, GSTR-3B | Monthly/Quarterly |
| Auditor Appointment | ADT-1 | Within 15 days of AGM |
| Board Meetings | Minimum 4 per year |
✔ Additional Compliance:
🔹 Secretarial Audit – If paid-up capital exceeds ₹50 crore or turnover exceeds ₹250 crore.
🔹 Mandatory Audit by a Chartered Accountant.
🔹 Statutory Meetings & Reports – Filing of annual reports with the Registrar of Companies (ROC).
🔹 Shareholder Meetings – Must conduct an Annual General Meeting (AGM) every year.
6️⃣ FAQs on Public Limited Company Registration
❓ Can a Public Limited Company be owned by one person?
🔹 No, it requires at least 7 shareholders & 3 directors.
❓ Is a Public Limited Company required to be listed on the stock exchange?
🔹 No, it can remain unlisted or apply for IPO to become a listed company.
❓ What is the minimum capital required to register a Public Limited Company?
🔹 ₹5 lakh, but no mandatory minimum as per new rules.
❓ Can a foreigner or NRI be a director in a Public Limited Company?
🔹 Yes, but they need DIN & at least one resident Indian director.
❓ Is GST registration required for a Public Limited Company?
🔹 Yes, if turnover exceeds ₹40 lakh (₹20 lakh for services).
❓ Can a Public Limited Company be converted into a Private Limited Company?
🔹 Yes, by following Section 14 of the Companies Act, 2013.
🔥 Conclusion
A Public Limited Company is ideal for businesses looking for expansion, credibility, and access to public funding. It offers limited liability, separate legal entity status, and better fundraising opportunities. However, it comes with higher compliance requirements compared to other business structures.
💡 Need help registering a Public Limited Company? Let me know! 😊
