Free Consultation by Expert

Many thanks to Setbharatbiz. We had an excellent experience working with its expert. They have a strong sense of professionalism when dealing with clients.

Mudassir CEO, Twinfinty DigiTech Solutions

We would recommend Setbharatbiz incorporation services to any founder without a second doubt. The process was beyond efficient and shows Setbharatbiz founder's vision

Nagasrinivas Director,Prakash Nagasrinivas & Saradhy Associates

I was searching for a company for assistance in the incorporation services. Then one of my friend tell me about Setbharatbiz and definitely the Setbharatbiz is the best.

Prakash Kakani Director, PNS EV Hub

Overview

Public Limited Company Registration

A Public Limited Company (PLC) in India is a preferred business structure for large companies aiming to raise significant capital from the public through the issuance of shares or debentures. Governed by the Companies Act, 2013, this structure allows the company to be publicly listed, with shares freely transferable among shareholders. Public Limited Companies enjoy a separate legal status, which means they can own assets, incur liabilities, and enter contracts independently of their owners. With higher credibility due to strict regulatory oversight, this entity attracts investors, facilitates expansion, and enhances the company's market reputation. However, it requires stringent compliance to maintain transparency and protect shareholders.

Why Registration is Important

  1. Capital Raising : Provides access to substantial funds by issuing shares to the public.
  2. Enhanced Credibility : Instills investor confidence due to structured governance and transparency.
  3. Perpetual Succession : Ensures the company continues to exist independently of ownership changes.
  4. Growth Opportunities : Facilitates large-scale operations and market expansion.
  5. Limited Liability : Protects shareholder assets, limiting liability to the extent of unpaid

Documents Required

To register a Private Limited Company in India, the following documents are generally required:

For Indian Nationals

For Foreign Nationals



Procedures

The process to incorporate a Public Limited Company Instead of Private Ltd co involves the following steps:

  • DSC
    Obtain Digital Signature Certificate
    All directors must obtain a DSC, which is used to sign documents electronically.
  • DIN
    Obtain Director Identification Number
    Apply for DIN for all proposed directors by submitting the required documents.
  • Name Reservation
    Name Reservation
    File the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) Part A form to reserve a unique name for the company.
  • Incorporation Forms
    Filing of Incorporation Forms
    Complete SPICe+ Part B for company incorporation, including details of the company's directors, shareholders, and registered office.
  • MOA & AOA
    Drafting of MOA and AOA
    The Memorandum of Association (MOA) and Articles of Association (AOA) outline the company’s objectives, rules, and regulations. These documents must be drafted and submitted.
  • Certificate of Incorporation
    Obtain Certificate of Incorporation
    Once all the documents are verified, the Registrar of Companies (ROC) issues the Certificate of Incorporation.
  • PAN & TAN
    PAN and TAN Application
    The company automatically gets its PAN and TAN along with the Certificate of Incorporation.
  • Listing
    Apply for Listing (If Going Public):
    If the company plans to offer shares to the public, it must comply with the Securities and Exchange Board of India (SEBI) regulations and list its shares on a recognized stock exchange.
  • Open Bank Account
    Open Bank Account
    Set up a corporate bank account to initiate business transactions.


Features

Features & Benefits of Public Limited Company Registration

Separate Legal Entity
The company operates independently of its shareholders.
Prev Next
Limited Liability
Shareholders' liability is limited to the unpaid amount on their shares.
Prev Next
Perpetual Succession
The company’s existence is not affected by changes in shareholding.
Prev Next
Unlimited Shareholders
There is no cap on the number of shareholders.
Prev Next
Fundraising Capability
Can raise capital from the public through shares, debentures, etc.
Prev Next

Public Limited Company In India

Compliance Requirements
High, with strict regulatory norms and governance standards.
Prev Next
Transparency
Mandatory disclosure of financial statements and regular audits.
Prev Next
Public Trust
Higher credibility and trust from the public and financial institutions.
Prev Next
Corporate Governance
Mandatory appointment of independent directors and adherence to governance practices.
Prev Next
Transferability of Shares
Shares can be freely transferred by shareholders, providing liquidity and ease of investment exit. This facilitates trading in the stock market, making it more attractive for potential investors.
Prev Next


Comparison between Public Limited Company, Private Limited Company And One Person Company

Features Public Limited Company Private Limited Company One Person Company (OPC)
Legal Status Separate Legal Entity Separate Legal Entity Separate Legal Entity
Liability Limited to shares LLimited to shares Limited to shares
Number of Owners Minimum 7 shareholders, No maximum 2-200 shareholders Only 1 shareholder
Share Transferability Freely transferable Restricted Not applicable
Compliance Requirements High (Public Issue) Moderate (Private Placement) Limited
Compliance Requirements Very High High Moderate
Corporate Governance Stringent Less stringent Not applicable
Audit Requirement Mandatory Mandatory Conditional
Public Trust High Moderate Limited


Frequently Asked Questions

What is the minimum number of directors required for a Public Limited Company?

A Public Limited Company must have a minimum of three directors.

Can a Public Limited Company be converted into a Private Limited Company?

Yes, a Public Limited Company can be converted into a Private Limited Company by following the legal procedure outlined by the Companies Act, 2013.

Is it mandatory for a Public Limited Company to list on the stock exchange?

No, it is not mandatory. A Public Limited Company can be unlisted. However, if it plans to raise capital from the public, it must be listed.

What are the annual compliance requirements for a Public Limited Company?

Public Limited Companies must file annual returns, financial statements, and conduct annual general meetings. They must also comply with SEBI regulations if they are listed.

Can a Public Limited Company issue preference shares?

Yes, a Public Limited Company can issue both equity and preference shares.

How does a Public Limited Company raise capital?

A Public Limited Company can raise capital through public offerings, rights issues, debentures, and other instruments.

Public Limited Company

Overview

A Public Limited Company (PLC) in India is a preferred business structure for large companies aiming to raise significant capital from the public through the issuance of shares or debentures. Governed by the Companies Act, 2013, this structure allows the company to be publicly listed, with shares freely transferable among shareholders. Public Limited Companies enjoy a separate legal status, which means they can own assets, incur liabilities, and enter contracts independently of their owners. With higher credibility due to strict regulatory oversight, this entity attracts investors, facilitates expansion, and enhances the company's market reputation. However, it requires stringent compliance to maintain transparency and protect shareholders.

Why Registration is Important

  1. Capital Raising : Provides access to substantial funds by issuing shares to the public.
  2. Enhanced Credibility : Instills investor confidence due to structured governance and transparency.
  3. Perpetual Succession : Ensures the company continues to exist independently of ownership changes.
  4. Growth Opportunities : Facilitates large-scale operations and market expansion.
  5. Limited Liability : Protects shareholder assets, limiting liability to the extent of unpaid

Documents Required

To register a Public Limited Company in India, the following documents are generally required:

For Indian Nationals

For Foreign Nationals


Procedures

  • DSC
    Obtain Digital Signature Certificate
    All directors must obtain a DSC, which is used to sign documents electronically.
  • DIN
    Obtain Director Identification Number
    Apply for DIN for all proposed directors by submitting the required documents.
  • Name Reservation
    Name Reservation
    File the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) Part A form to reserve a unique name for the company.
  • MOA & AOA
    Drafting of MOA and AOA
    The Memorandum of Association (MOA) and Articles of Association (AOA) outline the company’s objectives, rules, and regulations. These documents must be drafted and submitted.
  • Incorporation Forms
    Filing of Incorporation Forms
    Complete SPICe+ Part B for company incorporation, including details of the company's directors, shareholders, and registered office.
  • Certificate of Incorporation
    Obtain Certificate of Incorporation
    Once all the documents are verified, the Registrar of Companies (ROC) issues the Certificate of Incorporation.
  • PAN & TAN
    PAN and TAN Application
    The company automatically gets its PAN and TAN along with the Certificate of Incorporation.
  • Listing
    Apply for Listing (If Going Public)
    If the company plans to offer shares to the public, it must comply with the Securities and Exchange Board of India (SEBI) regulations and list its shares on a recognized stock exchange.

Features

Features & Benefits of One Person Company

Separate Legal Entity

The company operates independently of its shareholders.

Limited Liability

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

Perpetual Succession

The company’s existence is not affected by changes in shareholding

Unlimited Shareholders

There is no cap on the number of shareholders.

Fundraising Capability

Can raise capital from the public through shares, debentures, etc.

Compliance Requirements

High, with strict regulatory norms and governance standards.

Transparency

Mandatory disclosure of financial statements and regular audits.

Public Trust

Higher credibility and trust from the public and financial institutions.

Corporate Governance

Mandatory appointment of independent directors and adherence to governance practices.

Comparison between Public Limited Company, Private Limited Company And One Person Company

Features Public Limited Company Private Limited Company One Person Company (OPC)
Legal Status Separate Legal Entity Separate Legal Entity Separate Legal Entity
Liability Limited to shares LLimited to shares Limited to shares
Number of Owners Minimum 7 shareholders, No maximum 2-200 shareholders Only 1 shareholder
Share Transferability Freely transferable Restricted Not applicable
Compliance Requirements High (Public Issue) Moderate (Private Placement) Limited
Compliance Requirements Very High High Moderate
Corporate Governance Stringent Less stringent Not applicable
Audit Requirement Mandatory Mandatory Conditional
Public Trust High Moderate Limited

Frequently Asked Questions

What is the minimum number of directors required for a Public Limited Company?

A Public Limited Company must have a minimum of three directors.

Can a Public Limited Company be converted into a Private Limited Company?

Yes, a Public Limited Company can be converted into a Private Limited Company by following the legal procedure outlined by the Companies Act, 2013.

Is it mandatory for a Public Limited Company to list on the stock exchange?

No, it is not mandatory. A Public Limited Company can be unlisted. However, if it plans to raise capital from the public, it must be listed.

What are the annual compliance requirements for a Public Limited Company?

Public Limited Companies must file annual returns, financial statements, and conduct annual general meetings. They must also comply with SEBI regulations if they are listed.

Can a Public Limited Company issue preference shares?

Yes, a Public Limited Company can issue both equity and preference shares.

How does a Public Limited Company raise capital?

A Public Limited Company can raise capital through public offerings, rights issues, debentures, and other instruments.

Related Services