Public Limited Company in India: Meaning, Features, and Process

A Public Limited Company holds a unique place in India’s corporate landscape. It is the structure behind many of the country’s biggest brands, listed on stock exchanges and owned by thousands of people who may never meet each other. What brings them together is one simple feature. The company’s shares are open for anyone to buy and sell.

This idea of public participation creates both opportunity and responsibility. It opens the door to large pools of capital but also brings strict rules, transparency, and continuous reporting. Many growing businesses even choose to convert a Private Limited Company to a Public Limited Company once they reach a scale where wider investment becomes essential.

This guide walks through what a Public Limited Company is, how it works, the different types that exist, and what you must fulfil before registering one.

What Is a Public Limited Company?

A Public Limited Company (PLC) is a corporate entity whose shares are offered to the general public. These shares may be sold through an Initial Public Offering and later traded on a stock exchange. The Companies Act, 2013, sets out the rules that govern its creation and functioning.

A PLC gives investors limited liability, which means their personal assets stay protected. It must meet more demanding compliance duties than a private company, including detailed disclosures, regular filings, and transparent reporting. With a wide shareholder base and greater access to capital markets, PLCs often operate at a larger scale.

Basic Rules for Public Companies

• You need at least seven shareholders
• There is no maximum limit on members
• Shares can be freely transferred
• An AGM must be held every year
• Filings under Sections 92 and 137 are compulsory
• Listed companies must have independent directors
• Some companies must also appoint a woman director

Why Businesses Choose a Public Company

Companies choose the public route when they want to scale faster. Selling shares is an effective way to raise large amounts of capital. The structure also adds credibility, which helps in attracting talent, forming partnerships, and expanding abroad.

At the same time, the company accepts the responsibility of public trust. Every major decision moves under shareholder scrutiny, and financial statements must always reflect the truth.

Types of Public Limited Companies

Public companies fall into categories based on purpose, capital access, and market status. This helps readers understand how diverse the structure can be.

1. Listed Public Company

These companies list their shares on a stock exchange. Their shares can be bought or sold at any time during trading hours. They must follow strict SEBI rules.

2. Unlisted Public Company

These companies do not list their shares on stock exchanges. They can still issue shares, but only through private placements, not through a public offer.

3. Government Public Company

In this type, the central or state government holds at least 51 percent of the shareholding. Many public sector companies fall in this category.

4. Section 8 Company

You can register a Section 8 company as a private or public company, but it is governed by its own rules under Section 8. These are non-profit entities formed for charitable or social purposes.

Key Characteristics of a Public Limited Company

A PLC stands apart from other structures like private limited companies and partnerships. Its core features explain why it is suited for larger businesses.

1. Board of Directors

The Act requires at least three directors and allows up to fifteen. This board manages the company’s affairs and ensures decisions align with the company’s long-term interests. They represent the company in all major matters, and their role carries significant responsibility, which is explained in greater detail here: The Role of a Director in a Company

2. Limited Liability

Shareholders are protected from personal risk. Their liability ends with the amount they invested. They cannot be asked to pay the company’s debts from personal assets.

3. Minimum Paid-up Capital

There is no fixed minimum paid-up capital prescribed by law. In practice, many companies keep at least ₹5 lakh to present a stronger financial position when dealing with investors. If you want a clearer view of how paid-up capital fits into a company’s structure, here is a detailed guide on authorised and paid-up capital: Authorised vs Paid-Up Capital: Key Differences Explained

4. Mandatory Prospectus

A PLC must publish a prospectus when offering shares to the public. This document outlines the company’s financials, risks, and future plans. Private companies do not have this requirement.

5. Name Requirement

Every Public Limited Company must end its name with the word “Limited”. It signals the company’s structure clearly to the public.

Planning to reserve a unique name for your company on the MCA portal? This guide walks you through the process: How to Reserve Unique Name for your company over MCA?

6. Separate Legal Status

The company can own assets, sue, or be sued. It continues even if shareholders change.

Requirements for a Public Limited Company Registration

A Public Limited Company must meet certain baseline conditions before it can be incorporated. These conditions ensure that the company has the right structure, capital, and clarity of purpose.

• The company must have at least 7 shareholders.
• A minimum of three directors is required.
• There is no requirement for a minimum paid-up capital.
• All directors must hold a Director Identification Number.
• At least one authorised signatory must hold a Digital Signature Certificate for filing forms.
• The company must have a registered office in India where notices and communications can be delivered.
• The proposed company name must be unique, lawful, and approved by the Registrar.
• The business must have a clearly defined and lawful main objective.

These basic conditions create the legal structure a Public Limited Company needs before moving to documentation and filing.

Learn more about the shareholders of the company and who is eligible to be one in this blog: Who can become a Shareholder in a Company?

Documents for a Public Limited Company

Once the legal requirements are satisfied, the next step is gathering all necessary documents. These documents help the ROC verify identity, address, ownership structure, and governance.

1. Identity and Address Proofs (Directors & Subscribers)

• PAN cards for Indian directors/subscribers; passports for foreign nationals (apostilled/notarized)
• Address proofs: Aadhaar, Voter ID, passport, or utility bill (not older than 2 months)
• Passport-size photographs of all directors and subscribers

2. Registered Office Proof

• Utility bill (electricity/water, not older than 2 months)
• Ownership deed or rent/lease agreement
• No Objection Certificate (NOC) from the owner (if rented)

3. Director-Specific Documents

• Director Identification Number (DIN) for all (up to 3 directors via SPICe+)
• Digital Signature Certificate (DSC) for all directors
• DIR-2: Consent to act as director
• INC-9: Declaration of compliance by directors/subscribers

4. Incorporation Forms and Agreements

• SPICe+ (INC-32): Main integration form for company details
• eMOA (INC-33) and eAOA (INC-34): Electronic Memorandum and Articles of Association
• AGILE-PRO (INC-35): For GSTIN, EPFO, ESIC, and bank account.

5. Subscriber Documents

• Identity/address proofs and bank statements (last 2 months) for all 7+ subscribers
• Board resolution if the subscriber is another company

Note: INC-7 was used under the old incorporation process and is no longer applicable.

Together, these documents complete the verification needed to register a Public Limited Company.

Process to Register a Public Limited Company

Readers often want a step-by-step view of the formation process. Here is a simple walkthrough.

1. Obtain Digital Signatures

Every director and shareholder filing documents online must first get a Digital Signature Certificate.

Know who can be a director in a company and how to be one to make the right decision for the company.

2. Apply for Director Identification Number

DIN is mandatory for all directors. It allows them to legally serve on the board.

3. Reserve the Company Name

Use the RUN service or file the SPICe+ Part A form. The name must end with “Limited”. You can decide on a company name that is unique and doesn’t have similarities with others.

4. Draft MOA and AOA

These documents define how the company will function. They also list the company’s objectives.

5. File SPICe+ Part B

This form includes all incorporation details. You will attach identity documents, address proofs, capital details, and declarations.

6. Apply for PAN and TAN

These are auto-generated with the SPICe+ form.

Understand how PAN and TAN are different from each other in this blog: PAN and TAN in India: Full Form, Meaning, and Key Differences

7. Certificate of Incorporation

Once approved, the Registrar issues the Certificate of Incorporation. The company now exists as a legal entity.

8. Open a Bank Account

The company must open a current account and deposit the paid-up capital.

9. Issue the Prospectus (Optional)

If the company plans to raise funds from the public, it must publish a prospectus.

Is Going Public Risky?

Listing on a stock exchange exposes the company to market fluctuations. Share prices move with public sentiment and industry performance. Compliance costs also rise.

Yet, companies that choose this path usually have strong governance and mature management. Their systems are built to handle scrutiny and market cycles. For many businesses, the conversion to a Public Limited Company from a Private Company becomes the logical next step when they need wider funding and public credibility. Remaining private is always an option, but going public offers greater financial reach when done thoughtfully.

Conclusion

A Public Limited Company suits businesses with large ambitions. The structure helps raise capital from the public, build credibility, and expand with confidence. It demands discipline, regular reporting, and transparency, but rewards companies that handle these responsibilities well.

In short, a PLC works best for enterprises that expect substantial growth and want access to wider capital markets. With the right team and strong internal controls, the public route becomes a powerful step in a company’s journey.