Public Limited Company (PLC) Registration Process in India

A Public Limited Company (PLC) is a business structure that allows companies to raise capital from the public by issuing shares. It is ideal for large-scale businesses that require significant investment. Below is a step-by-step process for registering a Public Limited Company in India.

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Private Limited Company

Basic

₹ 12000/-

Annual ROC Filing
AGM Drafting & Filing
Prepration of Directors report

Standard

₹ 20000/-

Basic
Statutory Registers
4 Board Meetings
XBRL Assistance

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₹ 35000/-

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5 Event Filings
Unlimited Secretarial Support
Compliance Alerts

Step 1: Obtain Digital Signature Certificate (DSC)

Since company registration is done online, the first step is to obtain a DSC for all directors and promoters.

Step 2: Apply for Director Identification Number (DIN)

Every director of the company must obtain a DIN by filing Form DIR-3 with the Ministry of Corporate Affairs (MCA).

Step 3: Name Approval through RUN Form

You need to apply for name approval using the Reserve Unique Name (RUN) service on the MCA portal.

Step 4: Drafting of MOA & AOA

Once the name is approved, the Memorandum of Association (MOA) and Articles of Association (AOA) must be drafted.

Step 5: File Incorporation Forms (SPICe+ Form)

The company incorporation application is submitted using SPICe+ (INC-32) form on the MCA portal.

Step 6: Issue of Certificate of Incorporation (COI)

After document verification, the Registrar of Companies (ROC) issues a Certificate of Incorporation (COI).
The COI contains the Company Identification Number (CIN), confirming the company’s legal existence.

Step 7: PAN & TAN Application

Once the company is registered, it automatically receives PAN (Permanent Account Number) and TAN (Tax Deduction & Collection Account Number) from NSDL.

Step 8: Apply for Business Licenses & Registrations

Depending on the nature of business, additional registrations may be required, such as:

GST Registration (if annual turnover exceeds ₹20 lakh or if the company engages in inter-state trade).
MSME Registration (for availing government schemes and incentives).
Shop & Establishment Registration (as per state laws).
Professional Tax Registration (applicable in some states)

Step 9: Open a Company Bank Account

Once the Certificate of Incorporation (COI) and PAN are received, open a current bank account in the company’s name.

Step 10: Apply for Listing on Stock Exchange (Optional)

If the company plans to raise funds from the public, it needs to list on a recognized stock exchange (NSE/BSE) by issuing an Initial Public Offering (IPO).

Time & Cost for Registration

Time Required: 15-25 days

Cost: Varies based on professional fees, government charges, and state-wise fees (Approx ₹15,000 - ₹30,000)

Final Deliverables After Registration

Certificate of Incorporation (COI)

Company PAN & TAN

MOA & AOA

Director’s DIN & DSC

Bank Account

GST Certificate (if applicable)

A Public Limited Company (PLC) offers several advantages, making it an ideal business structure for large-scale operations and businesses looking to raise capital. Here are the key benefits:

1. Ability to Raise Capital from the Public

01 A PLC can issue shares to the public through an Initial Public Offering (IPO).

02 This helps in raising large-scale capital for expansion and growth.

03 Attracts investment from institutional investors, venture capitalists, and retail investors.

2. Limited Liability for Shareholders

01 The liability of shareholders is limited to their shareholding.

02 Personal assets of shareholders are not at risk in case of business losses or debts.

3. Perpetual Succession & Business Continuity

01 The company continues to exist even if directors or shareholders change.

02 Ensures long-term business stability and growth.

4. Better Credibility & Trust

01 Listed companies are highly regulated under SEBI and the Companies Act, ensuring transparency.

02 Investors, financial institutions, and corporate clients prefer PLCs for contracts and investments.

03 It enhances the brand value and reputation in the market.

5. Easy Transferability of Shares

01 Shares can be easily bought and sold on a stock exchange.

02 Allows shareholders to exit or trade their investment without affecting company operations.

6. Expansion & Growth Opportunities

01 A PLC can raise additional funds by issuing new shares or bonds.

02 Enables global expansion by attracting foreign investments.

03 More opportunities to merge or acquire other businesses.

7. Tax Benefits & Deductions

01 Eligible for corporate tax benefits and deductions under the Income Tax Act.

02 Various business expenses (salaries, rent, depreciation, R&D, etc.) are tax-deductible.

8. Employee Benefits & Stock Options

01 PLCs can offer ESOPs (Employee Stock Option Plans) to attract and retain talented employees.

02 Helps in motivating employees by giving them ownership in the company.

9. Access to Loans & Financial Support

01 Public companies find it easier to get bank loans and credit facilities.

02 Can raise funds via bonds, debentures, and public deposits.

10. Legal Recognition & Protection

01 A Public Limited Company is a separate legal entity, meaning:

02 It can own property, enter contracts, and sue or be sued in its own name.

03 It has legal protection against unauthorized use of its name.

11. Government Incentives & Schemes

01 Eligible for various government subsidies, startup benefits, and MSME schemes (if applicable).

02 Easier access to tenders and contracts from government and large corporations.

Conclusion

A Public Limited Company is the best choice for businesses looking to raise large capital, expand globally, and establish credibility in the market. Though it comes with higher regulatory requirements, the benefits outweigh the compliance efforts, making it an ideal choice for large enterprises.

FAQs

Q1. What is a Public Limited Company, and why should I consider registering as one?

A Public Limited Company is a business entity that offers shares to the public and provides limited liability protection. Registering as a Public Limited Company can grant you access to capital markets, enhance credibility, and offer potential for growth and expansion.

Q2. How many directors are required to form a Public Limited Company, and what role do they play?

A Public Limited Company requires a minimum of three directors. Directors play a crucial role in managing the company and making key decisions.

Q3. What are the benefits of registering a Public Limited Company compared to other business structures?

Registering as a Public Limited Company offers advantages such as limited liability protection, the ability to raise capital from the public through share offerings, increased credibility, and opportunities for business growth.

Q4. Can a foreign national be a director in a Public Limited Company?

Yes, foreign nationals can serve as directors in a Public Limited Company, provided they meet the eligibility criteria and comply with relevant regulations.

Q5. How do I reserve a unique and appealing name for my Public Limited Company?

To reserve a name, you need to submit an application to the Ministry of Corporate Affairs (MCA) adhering to the naming guidelines to ensure uniqueness and attractiveness.

Q6. How long does it typically take to register a Public Limited Company, and what is the process involved?

The registration process usually takes a few weeks, depending on document completion and government processing times. It involves submitting necessary documents to the Registrar of Companies (ROC) and obtaining the Certificate of Incorporation.

Q7. What are the key compliance requirements after registering a Public Limited Company?

Compliance requirements include conducting Annual General Meetings (AGMs), maintaining statutory registers, filing annual financial statements, appointing auditors, and adhering to applicable laws and regulations.

Q8. Can a Public Limited Company raise capital by offering shares to the public?

Yes, a Public Limited Company can raise capital by issuing shares to the public through an initial public offering (IPO) or subsequent public offerings, attracting investments from a wide range of investors.

Q9. What are the advantages of listing a Public Limited Company on stock exchanges?

Listing a Public Limited Company on stock exchanges provides benefits such as increased liquidity for shares, enhanced visibility among investors, potential valuation growth, and access to a broader pool of potential shareholders.

Q10. Are there any restrictions on transferring shares in a Public Limited Company?

Generally, there are no restrictions on the transfer of shares in a Public Limited Company, unless specified in the Articles of Association or subject to regulatory requirements.

Q11. What are the tax implications for a Public Limited Company, and how can I optimize my tax obligations?

A Public Limited Company is subject to corporate tax rates and must comply with tax filing and payment requirements. Optimizing tax obligations can be achieved through effective tax planning and utilizing applicable tax incentives.

Q12. Can a Public Limited Company be converted into a Private Limited Company, and what are the considerations involved?

Yes, a Public Limited Company can be converted into a Private Limited Company, subject to compliance with the Companies Act, 2013, and specific regulatory requirements. Considerations include obtaining shareholder consent, meeting eligibility criteria, and completing necessary filings with the ROC.

Q13. Is it mandatory to have a company secretary for a Public Limited Company, and what are their responsibilities?

Yes, it is mandatory to appoint a qualified company secretary for a Public Limited Company. The company secretary ensures compliance with legal and regulatory requirements, maintains company records, and facilitates communication with shareholders and regulatory authorities.

Q14. Can I form a Public Limited Company with a single shareholder, or do I need multiple shareholders?

No, a Public Limited Company requires a minimum of seven shareholders to be formed.

Q15. What are the key responsibilities of directors in a Public Limited Company?

Directors in a Public Limited Company are responsible for strategic decision-making, ensuring compliance with legal and regulatory requirements, safeguarding shareholder interests, and overseeing the company’s overall operations.

Q16. Is it possible to change the registered office address of a Public Limited Company?

Yes, it is possible to change the registered office address of a Public Limited Company by following the prescribed procedure, which includes obtaining shareholder approval, filing necessary forms with the Registrar of Companies (ROC), and updating company records.

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