Public Limited Company Registration Explained

Public Limited Company

In India, a public limited company is a structure meant and designed for entrepreneurs looking to establish a company with large-scale operations. Unlike the company structure of private limited companies, which seek capital and funds from particular individuals, Public limited companies can raise funds from the general public by offering them shares on stock exchanges. A public limited company enjoys the benefits of limited liability and a corporate entity. 

Characteristic features of a public limited company in India

Let’s now shift our gaze to understand a public limited company's key features and characteristics in India. 

A corporate entity that provides the general public with access to hold ownership

Yes, you read that right. A public limited company offers the general public an opportunity to invest and own the company's shares. 

Strict regulatory standards

Apart from the fact that public limited companies and startups allow the general public to report and invest in the company, a public limited company's regulatory laws and standards are much stricter than those of a limited liability or private limited company. The minimum members for a public limited company is 7, with no cap on the upper limit.

Board of directors in a public limited company

If you plan to make your startup a public limited company, you should know that the number of directors required in such a company structure is three. 

The company name must include “limited”

If you are a public limited company or want to become one, then your company's name should have the word “limited” as part of the government requirement.

A prospectus is a necessity.

A public limited company also needs to have a prospectus made,  wh includingin-depth analysis of the company’s operational activities, providing information to the investors about the same.

Types of a public limited company

• Listed Public limited company

This implies that the company has its shares listed and in a condition where the public can easily acquire them. This type of public limited company gets greater investor and public exposure.

• Unlisted public limited company

An unlisted public limited company is one where the shares aren’t listed, and as a result,they are not easily transferable. It benefits the startup or business owners seeking public scrutiny for their business. 

Registration for a public limited company- procedure and eligibility- all you need to know!

• Obtain a digital signature certificate.

Before the registration process begins, all the directors and members of the concerned public limited company must obtain their digital signature certificates.

• Apply for the director identification number.

The next step is that each director of a public limited company must have a director identification number for filing the registration forms.

• Check the company name availability.

Using the government portal, you can check if the company name you want to use is available.

• Spice+ form

After the name is attained, you must fill in the Spice+ form. Along with the form, you will have to submit the MOA.

• Certificate of incorporation

After checking all your documents,  the ministry would require the certificate of incorporation, which marks the company's birth.

• Apply for PAN and TAN

Next up, you will have to apply for your company's PAN and TAN numbers.

If you wish to get your company registered, contact Lawgical India.

FAQs

1. What is a Public Limited Company?
It’s a company that raises funds from the public via shares. Lawgical India handles everything from setup to legal approvals.

2. How is it different from a Private Limited Company?
It can list on stock exchanges and has no cap on shareholders. Lawgical India helps choose the right structure for your business.

3. How many people are needed to start one?
Minimum 3 directors and 7 members. Lawgical India manages all KYC, DIN, and filings.

4. What's the registration process?
Get DSC, DIN, name approval, file SPICe+, MOA/AOA, and get incorporation. Lawgical India takes care of the full process.

5. Is a prospectus required?
Yes, if raising public funds. Lawgical India helps you draft and file a compliant prospectus.

6. Can I list the company on the stock exchange right away?
Only after meeting SEBI norms. Lawgical India helps you stay compliant and prepare for listing.

7. What documents are required?
ID/address proof, office details, MOA/AOA, and digital signatures. Lawgical India compiles and verifies all documentation.

8. Is name approval necessary?
Yes. Lawgical India checks availability and files the application for you.

9. Can foreigners be shareholders?
Yes, with one resident Indian director. Lawgical India ensures all foreign compliance is covered.

10. How long does registration take?
Usually 20–30 days. Lawgical India speeds up the process with expert handling.