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Public Limited Company Incorporation

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Overview

Features

Benefits

Documentation

Process

A Simple Guide For Incorporating Your Public Limited Company under the Companies Act 2013

Starting a business in India can feel overwhelming, but choosing the right structure makes all the difference. If you’re dreaming big and plan to attract investors from the public, a public limited company could be your best bet. Governed by the Companies Act 2013, this setup lets you grow without limits on who can own shares. In this guide, we’ll break it down in easy steps—no legal jargon, just straightforward advice to help you get started.

What is a Public Limited Company?

Imagine a business where anyone can buy shares, just like stocks on the market. That’s a public limited company in a nutshell. It’s defined under Section 2(71) of the Companies Act 2013 as any company that’s not private— meaning it can have unlimited members and issue shares to the general public. The name must end with “Limited” to show its status.

Features Section?

Minimum Members

There must be at least 7 members in a Public Limited Company. However, there is no limit on the maximum number of members.

Minimum Directors

A Public Company shall consist of a minimum of 3 directors.

Transparency Rules

You must share financial details publicly, building trust with investors.

Transferability of Shares

Shares can be freely bought and sold without restrictions, unlike in private companies, where transfers are restricted.

Compared to a private limited company, a public one faces more regulations but offers easier access to funding and credibility for larger ventures.

Benefits Section ?

Why Choose a Public Limited Company? Top Benefits

Going public isn’t just about the name—it’s a smart move for ambitious entrepreneurs. Here are the perks:

  • Limited Liability: Personal assets of shareholders stay safe; you’re only responsible up to your investment amount.
  • Endless Life: The company lives on, even if owners or directors change—called perpetual succession.
  • Fundraising Power: Sell shares or debentures to the public, banks, or investors for quick capital boosts.
  • Share Transfer Ease: Owners can sell shares anytime, making it attractive for buyers and sellers.
  • Credibility Boost: Public status signals stability, drawing top talent, partners, and even foreign funds.
  • Asset Ownership: The company can own property, patents, or trademarks in its name, separate from individuals.

These advantages make it ideal for industries like tech, manufacturing, or retail, aiming for national reach.

Documentation ?

Here’s a list of documents that you need to set up your Public Ltd company:

For Directors and Shareholders

  • Valid identity documents: PAN, Aadhaar, Passport, Voter ID, or Driving License
  • Recent proof of residence: utility bill or bank statement (not older than 2 months)
  • Passport-sized photographs

For the Registered Office

  • Ownership proof or rental agreement
  • No Objection Certificate (NOC) from the property owner
  • Latest utility bill showing the office address

Additional Mandatory Documents

  • MOA (Memorandum of Association)
  • AOA (Articles of Association)
  • Form INC-9 (declaration by subscribers and directors)
  • Form DIR-2 (consent to act as a director)

Registration Process

​The Ministry of Corporate Affairs has simplified company incorporation through SPICe+, an integrated online form. Here’s how the process works in simple terms:

Get Digital Signature Certificates (DSCs)

Every proposed director and shareholder needs a Class-3 DSC to sign documents electronically.

 

Apply for Name Reservation:

Through SPICe+ Part A, submit one or more proposed names. If approved, the name is reserved for 20 days. The proposed name(s) should be unique, resembling the business of the Company, and be compliant with applicable Rules.

Complete the Incorporation Form:

In SPICe+ Part B, fill in details such as business activities, registered office, director information, shareholding pattern, and attach MOA/AOA.

Verification and Certificate of Incorporation (CoI)

Upon the review and verification of the incorporation application, the Registrar approves the application and issues a Certificate of Incorporation (CoI) with PAN, TAN, EPFO, ESIC, and Shops & Establishment (only for some States).

Open Bank Account

Use COI to set up a current account and deposit subscription money.

Frequently Asked Questions

How do I start a business in India as a foreign company?

Foreign companies can set up a liaison office, branch office, or wholly-owned subsidiary in India. Corpsecure assists with RBI, FEMA, and ROC compliances for a smooth entry.

What is the cost of company registration in India?

The cost depends on the type of company (Pvt Ltd, LLP, OPC, etc.) and government fees. On average, registration can start from ₹7,999 onwards with professional assistance.

How long does it take to register a company in India?

With proper documents, company registration can take 7–15 working days. Corpsecure ensures faster turnaround by managing documentation and compliance.