Public Limited Company
A Public Limited company is a business entity formed for any lawful purpose under the provisions of the companies Act, 2013 and which is not a private company. Minimum seven persons are required for incorporation of a Public company
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- Separate legal entity
- Perpetual succession
- Limited liability of members
- Easy transferability of ownership
- Easy Financial Assistance
Overview of Public Limited Company Registration
A company incorporated outside India seeking interest to start their operations in India as a start-up structure can incorporate a public limited company with an option to raise capital from public.
Foreign direct investment in India has mainly two entry routes- Automatic Route and Government Route. Automatic Route is the entry route through which investment by a person resident outside India does not require the prior Reserve Bank approval or Government approval.
Government Route is the entry route through which investment by a person resident outside India requires prior Government approval. Foreign investment received under this route shall be in accordance with the conditions stipulated by the Government in its approval.
In a Public Limited Company, minimum of three and maximum of 15 persons can be appointed as Directors. It is the most popular and preferred form of business in India as it combines the features of both company and LLP. In the event of winding up of Public Limited Company, the personal assets of the members shall not be held liable for debts and losses of the company.
Advantages
Separate Legal Entity: As a juristic legal person, both the company and its members have separate legal identity that is distinct from each other.
Perpetual succession: A company’s existence is uninterrupted, even the death or insolvency of its shareholder(s)/directors does not affect the continuity of business of the company.
Limited liability of members: The liability of members of a public limited company is limited to the amount of share capital remaining unpaid on the shares held by them.
Easy transferability of ownership: The ownership in a public limited company is easily transferable by way of transfer of shares from one member to another.
Easy Funding: Public Limited Company can raise capital from public along with the other modes of raising finance.
Process
Document Required
- Copy of PAN (in case of resident)
- Copy of Passport (in case of non-resident)
- Copy of proof of identity(Voters ID/ Driving License/ Passport);
- Copy of residential proof (Bank Statement/Telephone Bill/ Mobile Bill/Gas Bill not older than two months);
- Consent to act as directors*
- Disclosure of interest in other entities*
- Copy of PAN (in case of resident);
- Copy of Passport (in case of non-resident);
- Copy of proof of identity(Voters ID/Driving License/Passport);
- Copy of residential proof (Bank Statement/ Telephone Bill/ Mobile Bill/ Gas Bill not older than two months);
- Copy of Sale deed/ Property Deed (in case of owned property) or Lease Deed (in case of rented premises)
- Copy of Telephone or Mobile/Electricity or Gas Bill of registered office (Any one, not older than 2 months)
- No-objection Certificate from the owner from the owner of the premises for its use as registered office*
- Memorandum and Articles of Association*
Why TaxLane Corporate Services?
At TaxLane we have a dedicated team of professionals for providing quality services with accuracy and within given timelines. We provide a complete transparent and online platform for registration of your public limited company.
Our Service for public company registration include:
- DSC of Subscribers and Directors
- 3 DIN
- Company Registration fees and stamp duty
- Certificate of Incorporation
- Company’s PAN and TAN
- Company’s EPFO and ESIC Registration
- Professional Tax Registration
- Opening of Bank Account
- Drafting of Memorandum and Articles of Association
- Drafting of requisite declaration(s), consent letters, etc.
Frequently Asked Questions
A Public Limited Company is a type of business entity whose shares are traded publicly on stock exchanges, allowing for widespread ownership and investment.
Requirements typically include a minimum share capital, registration with regulatory authorities, appointment of directors and company secretary, and compliance with company law and listing rules.
A Public Limited Company is governed by its board of directors, who are elected by shareholders to oversee corporate affairs, set strategic objectives, and ensure compliance with legal and regulatory obligations.
Public Limited Company must prepare and publish annual financial statements, interim reports, directors’ reports, and other disclosures in accordance with accounting standards and stock exchange regulations.
Shareholders have rights to attend and vote at general meetings, receive dividends, inspect corporate records, and bring legal actions against the company for breaches of duty or misconduct.
Yes, Public Limited Company shares are available for purchase by any individual or institutional investor through stock exchanges or over-the-counter markets, subject to applicable securities laws and trading restrictions.
Public limited companies (PLCs) can improve visibility through effective investor relations, transparent communication, regular financial reporting, participation in investor conferences, and maintaining a strong corporate reputation.
Directors and officers owe fiduciary duties to the company and its shareholders, including duties of loyalty, care, and diligence, and must act in the best interests of the company at all times.
Strong corporate governance practices promote transparency, accountability, and integrity within public limited companies (PLCs), fostering investor confidence, reducing risk, and enhancing long-term sustainability.
Auditors are independent professionals responsible for examining and verifying the accuracy of a public limited company’s financial statements, ensuring compliance with accounting standards and regulatory requirements.