Startup Club India helps simplify the complex process of Public Limited Company Registration for entrepreneurs and businesses across India. If you’re planning to scale your business and attract public investment, registering a public limited company could be your best move. This blog will walk you through the legal requirements, procedures, and guidelines you need to follow to successfully register your public limited company in India.
What is a Public Limited Company?
A Public Limited Company (PLC) is a corporate structure in India that allows its shares to be publicly traded and operates under the Companies Act, 2013. A minimum of three directors and at least seven shareholders are required. Unlike a private company, it can raise funds from the public through Initial Public Offerings (IPO) and stock exchanges.
Because of its openness to public investment, a PLC has stricter compliance and regulatory requirements than other business structures. This makes Company Registration of a public limited company a more detailed process but offers significant benefits in return.
Key Features of a Public Limited Company
Before moving on to the legal framework, it’s important to understand the key features that define a public limited company:
- Minimum Capital Requirement: There is no minimum paid-up capital required under the Companies Act, 2013, but it often depends on the business goals.
- Minimum Directors & Shareholders: At least 3 directors and 7 shareholders are required to form a PLC.
- Separate Legal Entity: A PLC is treated as a separate legal entity, independent from its shareholders and directors.
- Limited Liability: The liability of shareholders is limited to the amount unpaid on their shares.
- Easy Transferability of Shares: Shares can be transferred freely, which enhances liquidity.
- Public Fund Raising: The company can raise capital from the general public, venture capitalists, or institutional investors.
- Listing on Stock Exchange: A PLC can list itself on stock exchanges like NSE or BSE for public trading.
These features make public limited companies suitable for medium to large-scale businesses aiming for growth and expansion.
Legal Eligibility Criteria to Register a Public Limited Company
To begin your Public Limited Company Registration, certain eligibility criteria must be met:
- Minimum Shareholders: A minimum of seven shareholders is necessary to establish a Public Limited Company.
- Minimum Directors: At least three directors are required. At least one director must be a resident of India.
- Unique Company Name: Your company name must not be identical to or closely resembling any existing company or trademark.
- Registered Office Address: A valid Indian address must be provided as the company’s registered office.
- Digital Signatures (DSC): All directors must possess a valid Digital Signature Certificate for filing forms online.
- Director Identification Number (DIN): Each individual intending to become a director must secure a DIN through the Ministry of Corporate Affairs (MCA).
Meeting these basic criteria is the first step toward starting your Public Company Registration in Delhi or anywhere in India.
Mandatory Legal Requirements for Registration
Once you meet the eligibility criteria, the following legal steps must be fulfilled to complete the Public Limited Company Registration:
- Name Approval via RUN
Submit an application for name reservation using the RUN (Reserve Unique Name) service on the MCA portal. The name must be unique and compliant with the Companies (Incorporation) Rules, 2014.
- Obtain DSC and DIN
- DSC (Digital Signature Certificate) is mandatory for signing electronic documents.
- Each proposed director must obtain a Director Identification Number (DIN).
- Prepare the MOA and AOA
- Memorandum of Association (MOA) outlines the company’s main objectives and powers.
- Articles of Association (AOA) defines the company’s internal governance and operational rules.
- Certificate of Incorporation
Upon successful verification, the Registrar of Companies (ROC) issues the Certificate of Incorporation (COI), which includes the Company Identification Number (CIN).
Once you receive the COI, your Public Limited Company Online is legally registered and can begin operations.
Registrar of Companies (ROC) Compliance Guidelines
After registration, your public limited company must follow strict compliance guidelines laid out by the Registrar of Companies (ROC):
- Annual Filings
- Form AOC-4 for financial statements
- Form MGT-7 for annual returns
- These filings must be done annually to maintain legal status.
- Board Meetings
At least four board meetings should be held each year, with a maximum gap of 120 days between meetings.
- AGM (Annual General Meeting)
A Public Limited Company is required to hold its first Annual General Meeting (AGM) within nine months after the end of its financial year, followed by at least one AGM every calendar year.
- Audit Requirements
A statutory auditor should be appointed within 30 days of the company’s incorporation.
- Compliance Certificate
A company with a paid-up capital of ₹10 crore or above is required to obtain a compliance certificate from a practicing company secretary.
- Filing of Other Returns
Allotment of shares, changes in directors, and other major events must be reported to ROC in prescribed formats.
Failure to comply may result in penalties, disqualification of directors, or even winding up of the company.
Common Legal Mistakes to Avoid During Registration
When applying for Public Limited Company Registration, many businesses make avoidable errors that delay or reject the process. Here are the common mistakes to steer clear of:
- Using a non-unique name similar to existing companies or trademarks.
- Inadequate documentation or missing signatures.
- Failure to obtain DSC/DIN for all directors beforehand.
- Incorrect format of MOA and AOA.
- Delayed filings or incomplete SPICe+ forms.
- Ignoring state-specific stamp duty regulations.
- Not consulting a legal or financial expert.
Avoiding these mistakes ensures a smooth and quick registration process.
How Startup Club India Helps You Meet All Legal Requirements
Navigating through all these legal steps can be confusing, especially for first-time business owners. That’s where Startup Club India steps in. As a leading Public Limited Company Registration consultant, we provide:
- Name approval assistance
- DSC & DIN application
- Drafting MOA & AOA
- Filing SPICe+ and related forms
- ROC compliance management
- GST registration and PAN/TAN application
- Ongoing compliance services post-incorporation
Whether you’re looking for Public Limited Company Online services or Public Company Registration in Delhi, our expert team ensures your registration is error-free, timely, and fully compliant with MCA norms.
Final Thought
Starting a Public Limited Company is a significant move for businesses aiming to expand, raise capital, and gain public trust. But the journey begins with proper registration and legal compliance. From preparing the necessary documents to following the ROC guidelines, each step must be handled with precision.
By understanding the legal requirements for Public Limited Company Registration, you position your business for long-term success. For expert support and end-to-end assistance, connect with Startup Club India, your trusted partner in seamless Company Registration.
