Introduction: Why Public Limited Companies Matter in India’s Corporate Ecosystem
India’s economic landscape is evolving rapidly, with growing demand for capital-intensive businesses that can scale across borders. Sectors like infrastructure, finance, manufacturing, and tech require public capital, broader ownership, and limited liability—all of which a Public Limited Company (PLC) provides.
Registering a Public Limited Company is a strategic move that brings credibility, enhanced fundraising capabilities, and legal recognition under the Companies Act, 2013—though it also comes with stricter compliance, public disclosures, and regulatory oversight.
At RegistrationMART, we’ve helped numerous entrepreneurs, corporates, and investors register PLCs in India. This detailed guide covers the legal process, eligibility, documents, compliance requirements, taxation, and funding strategies for 2025.
What is a Public Limited Company (PLC)?
A Public Limited Company is one that:
- Has limited liability for its shareholders
- Can offer shares to the public
- Has at least 3 directors and 7 shareholders
- Is governed under the Companies Act, 2013
Unlike Private Limited Companies, a PLC can raise capital via IPOs, private placements, and debentures—ideal for high-growth ventures or companies planning to go public.
Legal Framework Governing PLCs in India
| Law / Regulator | Key Role |
|---|---|
| Companies Act, 2013 | Formation, governance, compliance |
| MCA | Registration, filings, inspections |
| SEBI | Regulates listed public firms |
| FEMA / RBI | Covers FDI in PLCs |
| Income Tax Act | Corporate tax and disclosures |
| GST Law | Indirect tax applicability |
Key Features of a Public Limited Company
| Feature | Description |
|---|---|
| Legal Status | Separate legal entity from its owners |
| Limited Liability | Shareholder liability limited to unpaid shares |
| Transferability | Shares freely transferable under SEBI norms |
| Capital Raising | Via IPOs, private placements, debentures |
| Transparency | Mandatory public disclosures |
| Regulation | Stringent ROC, SEBI, and tax oversight |
Eligibility Criteria for PLC Registration
- Minimum 3 Directors (at least one Indian resident)
- At least 7 Shareholders
- DIN and DSC for all directors
- Registered office in India
- Authorized capital ≥ ₹5 lakh (post‑2015 amendment no minimum paid‑up capital)
Documents Required for Incorporation
- PAN, Aadhaar, passport (for NRIs/foreign directors)
- Address proofs (utility bill, rent deed, NOC)
- Director passport-sized photo and DSC
Step‑by‑Step PLC Registration Process
- Obtain DSC and DIN for directors
- Reserve company name via RUN (must end with “Limited”)
- Submit SPICe+ form (Parts A & B) with MoA, AoA, PAN, TAN, etc.
- Upload proofs: IDs, share capital, declarations (INC‑9, DIR‑2)
- ROC issues Certificate of Incorporation (CoI) with CIN
- Open corporate bank account using MoA, AoA, CoI, PAN
Compliance Requirements Post‑Incorporation
| Compliance | Frequency | Description |
|---|---|---|
| Board Meetings | Quarterly | Minimum 4 per year |
| AGM | Annually | Present financials and reports |
| ROC Filings | Annually | AOC‑4, MGT‑7, MGT‑9 |
| Director Disclosures | Annually | DIR‑3 KYC, MBP‑1 filings |
| Auditor Appointment | Within 30 days | File ADT‑1 |
| Statutory Audit | Yearly | By a Chartered Accountant |
| Income Tax Return | Yearly | ITR‑6 for companies |
| GST Returns | Monthly/Quarterly | If applicable |
Advantages of Registering as a PLC
- Unlimited capital-raising via public offers and debt instruments
- Greater brand credibility, joint venture and FDI appeal
- Limited liability with perpetual succession
- Higher public trust and easier valuation (IPO readiness)
Disadvantages and Limitations
- Higher compliance load and associated costs
- Reduced managerial autonomy (shareholder rights)
- Mandatory disclosure and public scrutiny
- Restrictions on managerial remuneration under Section 197
FDI in Public Limited Companies
- Up to 100% FDI in most sectors via automatic route
- FEMA compliance: FC‑GPR, valuation report, RBI filings
- SEBI norms and RBI/FPI rules must be followed
Taxation for Public Limited Companies (FY 2024‑25)
| Tax Type | Rate / Detail |
|---|---|
| Corporate Tax (Turnover < ₹400 Cr) | 25% |
| Corporate Tax (Others) | 30% |
| Surcharge | 7‑12% |
| MAT | 15% on book profits |
| Dividend Distribution Tax | Abolished; dividends taxed in shareholders’ hands |
PLCs may also be liable for TDS, GST, PF/ESIC depending on their operations.
Case Study: Infrastructure Startup in Maharashtra
Need: Raise ₹12 Cr via private placement
Solution: Registered as a PLC, structured equity issuance, formed compliant board, and ensured SEBI readiness.
Why Choose RegistrationMART?
- End‑to‑end registration and post‑incorporation compliance
- Private placement & director structuring
- FEMA & FDI handling, and audit setup
- IPO readiness consulting via partner networks
Conclusion: Public Company = Public Trust
Registering a Public Limited Company signifies maturity, governance, and vision. While it demands higher responsibility, it opens doors to capital markets, FDI, and institutional credibility.
RegistrationMART guides you from incorporation to compliance with transparency and precision.
