A Public Limited Company (PLC) is a type of business structure where the company’s shares are open for subscription by the general public. This makes it easier for companies to raise substantial capital from a wide pool of investors.

A PLC is governed by a Board of Directors and regulated under the Companies Act, 2013 in India. It enjoys a separate legal identity from its shareholders, and the liability of each shareholder is limited to the value of their shares.

Limited Liability: Shareholders’ financial risk is restricted to their investment in company shares.

Separate Legal Entity: The company can own property, enter into contracts, and sue or be sued in its own name.

Fundraising Capability: Can raise capital from the public via shares and debentures.

Transferability of Shares: Shares are easily transferable, offering liquidity to shareholders.

Transparency & Disclosure: Mandatory public disclosures of financial statements and company operations.

Perpetual Existence: Continues to exist irrespective of changes in shareholders or directors.

Public companies in India fall under two broad categories:

Listed Public Companies

Unlisted Public Companies

Public Limited Companies in India are primarily regulated by:

• Companies Act, 2013
• SEBI (LODR) Regulations, 2015 (for listed companies)
• SEBI (ICDR) Regulations, 2018 (for public issues and capital raising)
• Income Tax Act, 1961
• GST Act, 2017
• Various labor, employment, and insider trading regulations

To incorporate a public limited company in India, you must meet these eligibility criteria:

• Minimum 7 shareholders
• Minimum 3 directors
• At least one resident director
• Director Identification Number (DIN) for all directors
• Digital Signature Certificate (DSC) for at least one director
• Registered office address within India
• Unique company name following MCA guidelines

• Access to Public Capital Raise substantial funds from the public, institutional investors, and financial markets.
• Limited Liability Protection Shareholders’ personal assets remain secure against business debts.
• High Market Credibility Enhanced reputation boosts investor, partner, and customer confidence.
• Share Liquidity Listed companies allow shareholders to easily buy/sell their shares on stock exchanges.
• Attract Top Talent Ability to offer employee stock options (ESOPs) and market-linked benefits.
• Expansion & Acquisition Opportunities Easier access to funds and public visibility supports rapid growth.
• Economies of Scale Operational scale reduces per-unit costs, improving profitability.

• High Compliance & Setup Costs Involves significant legal, accounting, and listing expenses.
• Loss of Ownership Control Public shareholding may dilute founders’ control over decisions.
• Stringent Regulatory Scrutiny Must comply with SEBI, MCA, and exchange guidelines
• Public Disclosure Obligations Financials, shareholding patterns, and material events must be disclosed.
• Short-Term Market Pressure Share price volatility can force focus on quarterly results over long-term goals.

For Directors & Shareholders:

For Registered Office:

Other Essentials:

• Corporate Tax Rate: 22% (with certain conditions) or 30% for higher turnovers
• GST Registration mandatory if turnover exceeds ₹40 lakhs
• Tax Returns & Filings: Annual return filing with ROC, audit reports, income tax returns
• Dividend Tax: Dividend income taxable in the hands of shareholders

• Step 1: Obtain DSC for all directors
• Step 2: Apply for DIN
• Step 3: Check company name availability on MCA portal
• Step 4:File SPICe+ form with MoA & AoA
• Step 5:Receive Certificate of Incorporation with Corporate Identification Number (CIN)
• Step 6:Apply for PAN & TAN
• Step 7:Open a corporate bank account

Once incorporated, a PLC’s registration is permanent. It must, however, maintain its active legal status through: