Register a public limited company to raise capital from the public, enhance credibility, and scale your business with a robust corporate structure.
A Public Limited Company is a business entity registered under the Companies Act that is permitted to offer its shares to the general public and raise capital through public issues. This structure is ideal for large businesses with long-term growth plans, significant capital requirements, and an intention to expand operations at a national or international level. A public limited company enjoys a separate legal identity distinct from its shareholders, meaning it can own property, enter contracts, sue, and be sued in its own name. Shareholders’ liability is limited to the unpaid amount on their shares, which makes this structure attractive to investors. To incorporate a public limited company in India, a minimum of three directors and seven shareholders are required, along with compliance with statutory requirements such as appointment of auditors, maintenance of registers, and regular filings with regulatory authorities. While public companies are subject to higher compliance and disclosure obligations compared to private companies, they benefit from enhanced credibility, easier access to funding, improved brand image, and the ability to list shares on stock exchanges. Public limited company registration is therefore suitable for businesses aiming for large-scale operations, transparency, and public investment.
Ability to raise funds by issuing shares to the general public.
Public companies enjoy greater trust among investors, banks, and stakeholders.
Shareholders’ liability is limited to the amount unpaid on their shares.
Ideal structure for businesses planning large-scale expansion.
Enables large capital infusion through public offerings and institutional investors.
Company exists independently of its shareholders and directors.
Public status improves brand value and market standing.
Shares can be freely transferred, improving liquidity for investors.
Obtain Digital Signature Certificates and Director Identification Numbers for proposed directors.
Apply for company name approval through the Ministry of Corporate Affairs.
Prepare Memorandum of Association, Articles of Association, and statutory declarations.
File incorporation forms and receive Certificate of Incorporation.
Discuss business objectives and suitability of public company structure.
Provide identity, address proofs, and company details.
Forms are filed with the Registrar of Companies.
Get the Certificate of Incorporation and begin operations.
Incorporation application gets rejected.
How to avoid: Ensure at least 3 directors and 7 shareholders.
Future penalties and legal issues.
How to avoid: Understand ongoing compliance obligations before registration.
Delays in approval.
How to avoid: Prepare accurate MOA, AOA, and declarations.
Wrong company structure choice.
How to avoid: Evaluate if public company is suitable for your business stage.
It is a company that can offer shares to the public and has limited liability for its shareholders.
A minimum of 7 shareholders and 3 directors are required.
Yes, subject to regulatory approvals and compliance with listing requirements.
Yes, public companies have stricter compliance and disclosure requirements.
Generally no, unless the startup plans to raise capital from the public at an early stage.
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