Public Limited Company Formation in India – Complete Guide 2025

Introduction

A Public Limited Company (PLC) is one of the most prestigious business structures in India. Unlike a Private Limited Company, a Public Limited Company can raise capital by offering shares to the public, making it suitable for large businesses that plan to expand significantly or eventually list on the stock exchange.

This blog covers:

• What a Public Limited Company is

• Key features and benefits

• Eligibility criteria

• Step-by-step incorporation process

• Documents required

• Post-registration compliance

• Costs involved

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What is a Public Limited Company?

A Public Limited Company is a business entity registered under the Companies Act, 2013 that allows:

• Minimum 7 shareholders (no maximum limit)

• Minimum 3 directors (at least one must be a resident of India)

• Ability to raise funds from the general public through shares

• A separate legal identity from its owners

• Limited liability for shareholders

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Key Benefits of Public Limited Company

1. Access to Capital – Can raise funds from the public, banks, and institutions.

2. High Credibility – Strong market reputation compared to other structures.

3. Separate Legal Entity – Company exists independently of shareholders.

4. Limited Liability – Shareholders’ risk is limited to unpaid share capital.

5. Perpetual Succession – Company continues despite changes in ownership.

6. Stock Exchange Listing – Eligibility to list shares publicly once requirements are met.

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Eligibility for Public Limited Company Formation

• Minimum Members: 7 shareholders (no upper cap).

• Minimum Directors: 3 directors (at least 1 resident in India).

• Minimum Capital: No mandatory paid-up capital requirement (as per 2015 amendment).

• Name Requirement: Must end with “Limited.”

• Compliance: Must comply with SEBI guidelines if listed.

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Step-by-Step Public Limited Company Registration Process (2025)

Step 1: Obtain Digital Signature Certificate (DSC)

• All proposed directors must have a valid DSC to file e-forms online.

Step 2: Apply for Director Identification Number (DIN)

• Apply for DIN through SPICe+ form if not already allotted.

Step 3: Reserve Company Name

• Apply via SPICe+ Part A to reserve a unique name ending with “Limited.”

Step 4: Draft MoA & AoA

• Memorandum of Association (MoA): Defines objectives of the company.

• Articles of Association (AoA): Governs internal management.

Step 5: File SPICe+ (Part B) with MCA

• Provide shareholder and director details, registered office, capital structure.

• Attach required documents (MoA, AoA, ID proofs, address proofs, etc.).

Step 6: PAN & TAN Application

• Allotted automatically with incorporation.

Step 7: Certificate of Incorporation (COI)

• Issued by Registrar of Companies (ROC) after approval.

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Documents Required

1. PAN and Aadhaar of all directors/shareholders

2. Passport-size photographs

3. Address proof of directors/shareholders

4. Registered office proof (utility bill, rent agreement, NOC from owner)

5. MoA & AoA drafts

6. DSCs and DINs

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Post-Incorporation Compliance for Public Limited Companies

• Board Meetings: At least 4 every year, with maximum gap of 120 days between meetings.

• Annual General Meeting (AGM): Mandatory, within 6 months of financial year-end.

• Annual Filing:

  • AOC-4 (Financial Statements)

  • MGT-7 (Annual Return)

• Appointment of Auditor (ADT-1): Within 30 days of incorporation.

• Statutory Registers: Maintain records of members, directors, charges, etc.

• SEBI & Listing Compliances (if listed): Disclosure, corporate governance norms, quarterly filings.

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Cost & Timeline

Item	Approximate Cost (₹)	Timeline
DSC & DIN	3,000 – 8,000	2–3 days
Name Reservation	1,000	1–2 days
ROC Filing & Govt. Fees	5,000 – 10,000	10–20 days
Professional Fees	20,000 – 50,000	Varies
Total	28,000 – 68,000	25–40 days

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Conclusion

Forming a Public Limited Company in India is a smart choice for businesses aiming to expand at scale and raise funds from the public. While the compliance requirements are higher compared to Private Limited or LLP, the credibility and funding opportunities make it worthwhile for ambitious entrepreneurs.

At eAuditor Office, we help entrepreneurs incorporate Public Limited Companies seamlessly, ensuring all legal compliances are taken care of.