Public Limited Company Registration
Are you planning to launch a large-scale business? A Public Limited Company (PLC) may be the ideal business structure for your venture. A PLC is a distinct legal entity, separate from its shareholders, with unique benefits, access to capital, and regulatory obligations.
At Mundra Legal, we simplify the PLC registration process, helping you establish a compliant and fully operational public company in India.
Scale Your Business: Public Limited Companies offer unparalleled access to capital markets and investment opportunities.
What is a Public Limited Company?
A Public Limited Company (PLC) is a business entity whose shares are publicly traded on the stock market. Governed under the Companies Act, 2013, PLCs allow investment from the general public through an Initial Public Offering (IPO).
Key Characteristics
- Separate Legal Entity – PLCs exist independently of their shareholders.
- Limited Liability – Shareholders' personal assets are protected.
- Regulatory Compliance – Required to submit financial statements, maintain transparency, and adhere to corporate governance standards.
- Public Investment – Shares are offered to the general public, making it easier to raise capital.
PLCs can be listed or unlisted on stock exchanges. Once listed, they must provide annual financial reports to investors and regulatory authorities.
Requirements to Start a Public Limited Company
Starting a PLC requires strict compliance with legal regulations:
Minimum 7 Members
As shareholders for company formation
Minimum 3 Directors
To oversee company operations and governance
Minimum Capital
₹5 lakh paid-up capital requirement
DSC & DIN
Digital Signature Certificates and Director Identification Numbers for all directors
Company Name Approval
Ensure it follows ROC guidelines and is unique
MoA & AoA
Memorandum and Articles of Association outlining objectives and company rules
Supporting Documents
Form DIR-12, identity/address proofs, board resolutions
Registration Fee
Payment as per ROC requirements
Business Commencement
Certificate marking official start of operations
Advantages of a Public Limited Company
PLCs provide several strategic and operational benefits:
1. Limited Liability Protection
Shareholders' personal assets remain secure against company debts and liabilities.
2. Access to Capital & Liquidity
Raise funds via public share issuance, IPOs, or debentures. Shares are easily transferable, providing flexibility to investors.
3. Professional Management
Managed by a board of directors and senior executives, ensuring strategic decisions and corporate governance.
4. Enhanced Government Support
Eligible for subsidies, tax incentives, and economic development initiatives.
5. Trust & Reputation
Being publicly listed increases credibility with investors, banks, and stakeholders.
6. Employee Incentives
PLCs can offer ESOPs, RSUs, and other equity-based incentives to attract and retain talent.
Public vs Private Limited Company
| Parameter | Public Limited Company | Private Limited Company |
|---|---|---|
| Definition | Listed on stock exchange, shares publicly tradable | Closely held, not publicly traded |
| Minimum Members | 7 | 2 |
| Minimum Directors | 3 | 2 |
| Paid-Up Capital | ₹5 lakh | ₹1 lakh |
| Public Subscription | Allowed | Not allowed |
| Director Retirement | ⅔ retire by rotation | No mandatory rotation |
Documents Required for PLC Registration
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- DIN & DSC of directors
- Identity & address proofs
- Form DIR-12, INC-7, INC-22
- Board resolutions approving incorporation
- PAN & TAN of the company
- Bank statements & registered office proof
- Certificate of Incorporation (COI) & Business Commencement Certificate
Step-by-Step Registration Process
Obtain DIN
Director Identification Number via MCA portal for all directors.
Acquire DSC
Digital signature for signing documents electronically.
Draft MoA & AoA
Define company objectives and rules governing operations.
Company Name Approval
File with ROC for unique name verification and approval.
Submit Incorporation Forms
File INC-7, INC-22, DIR-12 with required documentation.
Pay Registration Fees
Online payment of government and registration fees.
Verification by ROC
Upon approval, Certificate of Incorporation (COI) is issued.
Commence Business
Apply for Business Commencement Certificate to start operations.
Additional Advantages of PLCs
Market Liquidity
Shares can be bought and sold freely on stock exchanges, providing easy exit options for investors.
Employee Benefits
Flexible equity plans, ESOPs, long-term incentive plans to attract top talent.
Enhanced Reputation
Public scrutiny and regular reporting build trust with stakeholders and customers.
Expansion Opportunities
Access to large-scale capital for growth, R&D, acquisitions, or entering new markets.
Risks of Becoming a Public Limited Company
High Compliance Costs
Statutory and financial reporting overhead requires dedicated resources.
Loss of Control
Majority shareholders may influence decisions, reducing founder control.
Market Scrutiny
Public and media attention on revenue, profits, and management decisions.
Should Private Companies Go Public?
Going public is ideal for mature companies with stable revenue, market leadership, and growth potential. It offers access to capital and employee incentives but comes with regulatory scrutiny and governance responsibilities.
Consider the following factors before going public:
- Revenue Stability – Consistent and predictable revenue streams
- Market Position – Strong market presence and competitive advantage
- Growth Plans – Clear expansion strategy requiring capital
- Governance Readiness – Ability to comply with regulatory requirements
- Shareholder Expectations – Willingness to be accountable to public investors
Mundra Legal – Your PLC Registration Partner
At Mundra Legal, we simplify the entire process of PLC incorporation:
End-to-End Consultation
Complete guidance and documentation support throughout the registration process.
Filing MoA, AoA & Forms
Professional drafting and submission of incorporation documents.
DIN, DSC, PAN, TAN
Assistance with all statutory requirements and ROC approvals.
IPO & Governance Guidance
Expert advice on compliance, IPO readiness, and corporate governance.
Our experts ensure a smooth, compliant, and fast registration so your business can scale confidently.
Frequently Asked Questions (FAQs)
Q1. What is a Public Limited Company?
A PLC is a business entity whose shares are publicly traded and offers limited liability to its shareholders.
Q2. How many members are required for a PLC?
Minimum 7 members and 3 directors are required to form a Public Limited Company.
Q3. What is the minimum capital requirement?
₹5 lakh paid-up capital is required to start a PLC in India.
Q4. Can PLC shares be traded publicly?
Yes, PLC shares can be listed on a stock exchange and freely traded by investors.
Q5. What are the compliance requirements?
PLCs must file annual reports, audits, and adhere to corporate governance standards as per the Companies Act, 2013.
Contact Mundra Legal Today
Register your Public Limited Company and take the first step toward growth and credibility. Our experts are ready to guide you through every step of the process.