Public Limited Company Registration

A Public Limited Company (PLC) is a type of company that is incorporated under company law and is allowed to offer its shares to the general public. It is typically listed on a recognized stock exchange, allowing investors to buy and sell shares freely.

 Key Features of a Public Limited Company:

• Limited Liability: Shareholders’ liability is limited to the amount unpaid on their shares.

• Separate Legal Entity: The company has its own identity, separate from its shareholders and directors.

• Share Transferability: Shares are freely transferable and can be traded on public stock markets.

• Minimum Shareholders: Requires at least 7 shareholders and 3 directors.

• Mandatory Compliance: Subject to stricter regulatory and disclosure requirements under the Companies Act and SEBI (in India).

 Ideal For:

• Large businesses seeking to raise capital from the public.

• Companies planning to list on stock exchanges (e.g., NSE, BSE).

• Enterprises looking for enhanced visibility, credibility, and access to large-scale funding.

Types of Public Limited Companies

1. Listed Public Limited Company

• Definition: A public limited company whose shares are listed and traded on a recognized stock exchange (e.g., NSE, BSE).

• Characteristics:

  • Shares are freely transferable and available to the general public.

  • Subject to stringent disclosure and compliance norms by SEBI and stock exchanges.

  • Can raise capital from the public through Initial Public Offerings (IPO).

• Example: Infosys, Reliance Industries, TCS.

2. Unlisted Public Limited Company

• Definition: A public limited company that is not listed on any stock exchange.

• Characteristics:

  • Shares can be offered to the public but are not traded on stock exchanges.

  • Compliance requirements are less rigorous than listed companies but stricter than private companies.

  • Can still raise capital from the public through private placements or rights issues.

• Example: Certain large companies operating in niche sectors or subsidiaries of listed companies.

3. Government Company (Public Sector Undertaking - PSU)

• Definition: A company where 51% or more shares are held by the government (central or state).

• Characteristics:

  • Operates under company law but follows additional government rules.

  • Aims to serve public interests, infrastructure, or strategic sectors.

  • Examples include companies like Indian Oil Corporation, Bharat Heavy Electricals Ltd (BHEL).

4. Holding Public Limited Company

• Definition: A public company that holds a significant stake in one or more subsidiary companies.

• Characteristics:

  • Controls or influences subsidiary companies through shareholding.

  • Can be listed or unlisted.

  • Common in corporate groups and conglomerates.

5. Subsidiary Public Limited Company

• Definition: A public limited company controlled by another company (holding company).

• Characteristics:

  • Operates independently but under strategic control of the holding company.

  • Can be listed or unlisted.

Advantages of a Public Limited Company

 1. Access to Large Capital

• A PLC can raise funds from the general public through the stock market by issuing shares.

• Ideal for large-scale expansion, infrastructure, and R&D.

 2. Share Transferability

• Shares of a listed public company are freely transferable on stock exchanges.

• This improves liquidity and attracts investors.

 3. Enhanced Brand Credibility

• Being publicly listed builds reputation and trust among customers, suppliers, and investors.

• Regulatory transparency enhances market image.

 4. Limited Liability of Shareholders

• Shareholders’ liability is limited to the amount unpaid on their shares.

• Personal assets remain protected.

 5. Separate Legal Identity

• The company is a distinct legal entity, separate from its owners and directors.

• It can own property, enter contracts, sue or be sued in its own name.

 6. Perpetual Succession

• The company’s existence is not affected by death, retirement, or insolvency of shareholders or directors.

• Offers long-term operational stability.

 7. Opportunity to List on Stock Exchanges

• Enables Initial Public Offerings (IPOs) and Follow-on Public Offerings (FPOs).

• Increases access to institutional investors and market capital.

 8. Wider Investment Opportunities

• Public companies can attract foreign investment, venture capital, private equity, and mutual funds more easily than private firms.

 9. Transparent Operations

• Mandatory disclosures and audits ensure transparency, which builds investor and stakeholder confidence.

Disadvantages of a Public Limited Company

 1. Extensive Regulatory Compliance

• Public companies must follow strict regulations set by the Companies Act, SEBI, and stock exchanges.

• Compliance includes regular filings, disclosures, board meetings, and audits.

 2. Loss of Control

• As shares are open to the public, ownership gets diluted.

• Founders and promoters may lose majority control due to public or institutional shareholders.

 3. High Cost of Formation & Maintenance

• Costs include IPO procedures, listing fees, legal and advisory charges, regulatory filings, and compliance.

• Ongoing expenses are significantly higher than for private companies.

 4. Increased Public Scrutiny

• Financial performance, director decisions, and internal matters are subject to public and media attention.

• Mistakes or underperformance can damage reputation and share prices.

 5. Risk of Hostile Takeovers

• Since shares are freely traded, outsiders can acquire a controlling interest if a large number of shares are bought on the open market.

 6. Time-Consuming Decision Making

• Major decisions often require board or shareholder approval.

• This can slow down operations compared to private companies with tighter control.

 7. Pressure to Perform

• Shareholders expect regular profits, dividends, and positive results.

• Companies face constant pressure to meet market expectations, which may affect long-term planning.

 8. Disclosure of Sensitive Information

• Public companies must disclose financials, shareholding, director salaries, and other details.

• Competitors and third parties gain access to strategic data.

Documents Required for Public Limited Company Registration

 1. Identity Proof of Directors & Shareholders

• PAN Card (mandatory for Indian nationals)

• Passport (mandatory for foreign nationals)

• Aadhaar Card, Voter ID, or Driving License (as additional ID proof)

 2. Address Proof of Directors & Shareholders

• Recent Bank Statement, Utility Bill (Electricity/Water/Gas), or Telephone Bill

• Should be not older than 2 months

 3. Passport-sized Photographs

• Clear, recent color photographs of all directors and shareholders

 4. Digital Signature Certificate (DSC)

• Required for at least one director to sign digital forms during incorporation

• Must be issued by a government-authorized certifying agency

 5. Director Identification Number (DIN)

• Required for all proposed directors

• Can be applied through SPICe+ (Part B) if not already available

 6. Registered Office Proof

• Electricity Bill, Property Tax Receipt, or any utility bill of the business premises

• Must not be older than 2 months

 7. No Objection Certificate (NOC)

• From the property owner, if the registered office is on rented premises

 8. Ownership Proof of Registered Office

• Rent Agreement (if rented) or

• Sale Deed/Property Papers (if owned)

 9. Memorandum of Association (MOA)

• Defines the company’s objectives, scope, and powers

 10. Articles of Association (AOA)

• Lays down internal rules, rights, duties, and responsibilities of directors and shareholders

 11. Declaration and Consent Forms

• DIR-2: Consent to act as director

• INC-9: Declaration by subscribers and first directors 

​​​​​​​How to Register a Public Limited Company in India

 Step 1: Obtain Digital Signature Certificates (DSC)

• Required for all proposed directors and subscribers to digitally sign incorporation documents.

• Issued by a government-recognized Certifying Authority.

 Step 2: Apply for Director Identification Numbers (DIN)

• DIN is mandatory for all proposed directors.

• Can be obtained while filing the SPICe+ form (if not already allotted).

 Step 3: Name Approval via RUN or SPICe+ (Part A)

• Apply for your company’s name using SPICe+ Part A on the MCA portal.

• Ensure the name is unique and not identical to any existing company or trademark.

• You can apply for up to two names in one submission.

 Step 4: Draft MOA & AOA

• Memorandum of Association (MOA): Defines the company’s main and ancillary objectives.

• Articles of Association (AOA): Defines internal rules, rights, and duties.

 Step 5: File SPICe+ (Part B) for Incorporation

Submit the following forms and documents via the MCA portal:

• SPICe+ Part B (Incorporation)

• AGILE-PRO-S (for PAN, TAN, EPFO, ESIC, GST, etc.)

• INC-9 (declaration by first directors and subscribers)

• DIR-2 (consent from directors)

• Proof of registered office (rental agreement, utility bill, etc.)

 Step 6: Pay Government Fees & Stamp Duty

• Fees vary based on authorized capital and the state of registration.

• Pay via the MCA portal during the SPICe+ filing process.

 Step 7: Verification by Registrar of Companies (ROC)

• ROC reviews the application, documents, and filings.

• In case of discrepancies, resubmission may be requested.

 Step 8: Receive Certificate of Incorporation (COI)

Once approved:

• You will receive a Certificate of Incorporation, along with

  • Company’s CIN (Corporate Identification Number)

  • PAN & TAN (auto-issued)

 Step 9: Open a Company Bank Account

• Use the COI, PAN, and KYC documents to open a current account in the company’s name.

​​​​​​​How to Register a Public Limited Company in India

Registering a Public Limited Company in India involves multiple legal steps under the Companies Act, 2013. Here’s a simplified, step-by-step process:

 Step 1: Obtain Digital Signature Certificate (DSC)

• Required for all proposed directors and subscribers.

• Used to sign incorporation forms digitally.

 Step 2: Apply for Director Identification Number (DIN)

• Mandatory for all directors.

• DIN can be applied for in the SPICe+ (INC-32) form itself.

 Step 3: Name Approval (SPICe+ Part A)

• Choose a unique company name and apply via MCA’s SPICe+ Part A form.

• Ensure the name is not already registered or trademarked.

​​​​​​​Why Choose YKG Global for Public Limited Company Registration?

 1. 40+ Years of Industry Expertise

With a legacy since 1981, YKG Global has empowered over 5000+ global clients in business formation, legal advisory, and regulatory compliance.

 2. End-to-End Registration Support

From name approval to Certificate of Incorporation, our experts handle the complete registration process — ensuring accuracy, compliance, and speed.

 3. Expert Legal & Compliance Advisory

Our team includes qualified CAs, CSs, and legal professionals who stay updated with Companies Act amendments, SEBI rules, and ROC procedures.

 4. Transparent & Cost-Effective Packages

We offer fixed-price packages with no hidden fees — giving you clarity and peace of mind while planning your company’s financials.

 5. PAN, TAN, GST & ESIC in One Go

Through SPICe+ integration, we help you obtain PAN, TAN, GST registration, EPFO, and ESIC — everything in a single streamlined process.

 6. Dedicated Relationship Manager

You’ll get a single point of contact who keeps you updated, resolves queries, and ensures timely filing and communication with MCA.

 7. Post-Incorporation Services

We go beyond registration with ongoing support including:

• Annual ROC filings

• Auditor appointment

• Trademark registration

• Business licenses & tax compliance

• Corporate bank account setup

 8. Global Company Setup Solutions

Planning international expansion? YKG Global also assists in foreign company incorporation across 20+ countries including UAE, Singapore, Canada, and Germany.

 Step 4: Draft MOA & AOA

• Memorandum of Association (MOA): Outlines company objectives.

• Articles of Association (AOA): Defines company rules & governance structure.

 Step 5: File SPICe+ Part B (Incorporation Form)

Submit incorporation documents online via MCA:

• SPICe+ Part B (INC-32)

• AGILE-PRO-S (GST, ESIC, EPFO, bank account, etc.)

• DIR-2, INC-9 (consent and declarations)

• Proof of registered office (rental agreement, utility bill)

 Step 6: Pay Stamp Duty & Government Fees

• Fees depend on your company’s authorized capital and state of registration.

 Step 7: Verification by ROC

• Registrar of Companies (ROC) verifies the application.

• You may be asked for clarifications or corrections if needed.

 Step 8: Certificate of Incorporation Issued

Once approved, you’ll receive:

• Certificate of Incorporation (COI)

• CIN (Corporate Identification Number)

• Auto-generated PAN & TAN

 Step 9: Open a Company Bank Account

• Use your COI and PAN to open a current account in the company’s name.

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