Public Limited Company is preferred for medium and large-sized businesses in India if they are planning to raise funds from the general public.

The primary advantage of a Public Limited Company is that it can raise capital from the public by issuing shares to investors in the form of IPO (Initial Public Offering). Thus, it is considered to be more transparent in its business model as compared to other types of business entities. In comparison to a Private Limited Company setting up a Public, LTD. Co. has stringent requirements. A Public LTD. Co. has a minimum of 7 members and there is no capping on the upper limit of the members of the company. A Public LTD. Co. keeps its operations distinct from its ownership to quite an extent. It is only a Public LTD. Co. that can have its shares listed on Indian stock exchanges such as NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).

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Advantages of Public Limited Company

• Separate Legal Entity -- A Public LTD. Co. is an entity with a distinct identity from its shareholders and a separate juristic person as per the Companies Act 2013. This provides the company with many rights such as opening a bank account under its name, obtain licenses, hire employees, and enter into contracts and has more legal capacity.

• Perpetual Existence -- A Public LTD. Co. continues to exist until it is legally dissolved by its directors. Death or departure of its directors for any reason has no effect on the company’s existence and the company continues to exist even when there is a change in ownership.

• Easy share allocation and redirection - The ownership of a Public LTD. Co. can be easily transferred by the method of transferring shares. The process is as simple as signing and filing a share transfer form along with individual share certificates subject to the approval of other shareholders.

• Property Ownership -- Since a Public LTD. Co. is a juristic person; it can own and sell the property under its name. As long as the company is a running concern, the property owned under the company name cannot be claimed by any of the directors.

• Capacity to Borrow – Financial institutions such as banks prefer to give loans to a Company in comparison to LLPs or other proprietary concerns. There are many options available with a Public LTD. Co. to raise funds. A company can accept public deposits, raise debentures both secured and unsecured, and can also issue equity shares

Minimum Requirement

• A minimum of 3 directors
• A minimum of 7 shareholders
• A minimum of 1 director to be Indian Resident
• Shareholder and director can be the same person
• DSC (Digital Signature Certificate) for 2 directors
• DIN (Director Identification Number) for ALL company directors

Documents required for registration

Mandatory:

• Copy of PAN card for Indian Nationals;
• Notarized and/or apostilled passport copy for Foreign Nationals

Identity Proof:

• Passport; or
• Aadhar card; or
• Voter ID; or
• Driving license
• Passport size photographs

 Address Proof:

• Copy of Telephone/Mobile or Electricity bill; or
• Bank Account Statement (Less than 2 months old)

Company Address Proof:

• Telephone/Mobile/Electricity/Gas bill (Less than 2 months old); AND
• In case of rented premises a notarized copy of Rent Agreement with a No-Objection Certificate (NOC) for conducting business;
• In the case of self-owned premises registered title document

Others:

• Declaration of interest by Directors
• A resolution passed by Promoter company if any
• MOA and AOA of the Company