A Public Limited Company (PLC) is a company that offers its shares to the general public and can be listed on a stock exchange. It is governed by the Companies Act, 2013 and regulated by the Ministry of Corporate Affairs (MCA) and SEBI (if listed). It requires a minimum of 3 directors and 7 shareholders, with no upper limit on the number of shareholders.
The major advantage of a Public Limited Company is its ability to raise large capital from the public through shares, debentures, or other instruments. Like a Pvt. Ltd. company, it also enjoys limited liability and is treated as a separate legal entity.
A Public Ltd. company must comply with more stringent regulatory and disclosure norms, including regular board meetings, annual general meetings (AGMs), statutory audits, and financial disclosures. These requirements enhance transparency and investor trust.
It is ideal for businesses aiming for large-scale operations, listing on stock exchanges, or attracting investments from the general public, institutional investors, or venture capitalists.
| Feature | Public Limited | Private Limited | One Person Company | Sole Proprietorship | LLP |
|---|---|---|---|---|---|
| Applicable Law | Companies Act, 2013 | Companies Act, 2013 | Companies Act, 2013 | Not Applicable | LLP Act, 2008 |
| Suitable For | Large-scale businesses | Startups & SMEs | Single Entrepreneurs | Individual Traders | Professionals |
| Minimum Members | 7 | 2 | 1 | 1 | 2 |
| Taxation | 25% or 30% + surcharge | 25% or 30% + surcharge | 30% + surcharge | Personal Income Tax Slab | 30% + benefits |
| Compliance Requirements | Very High | High | High | Low | Moderate |
| Ownership Transfer | Freely Transferable | Easy via shares | Transferable | Not Transferable | Transferable |
Can raise large capital by issuing shares to the general public and institutional investors.
The company has its own legal identity—distinct from its shareholders and directors.
Shareholders are only liable up to the amount they invest in shares.
Subject to regulatory scrutiny, which builds public and investor confidence.
Can list on stock exchanges like NSE/BSE, allowing public share trading.
The company continues even if shareholders or directors change or pass away.
Shares can be freely transferred on the stock exchange, subject to SEBI rules.
Public companies gain better recognition in international and domestic markets.
Public companies can secure larger loans from banks and financial institutions more easily.
Mandatory audits and disclosures ensure accountability and better corporate governance.
Initiate name reservation through the MCA portal using SPICe+ Part A form.
Directors and subscribers must acquire DSCs to sign the electronic forms.
Apply DIN for proposed directors using SPICe+ form if not already allotted.
Prepare the Memorandum & Articles of Association in line with public company norms.
Enter company details, directors, capital structure, and registered office in Part B.
Upload ID/address proofs, MOA, AOA, PAN, utility bills, NOC, and declarations.
PAN and TAN applications are integrated within the SPICe+ form submission.
The MCA verifies the application and issues the Certificate of Incorporation upon approval.
Once approved, you'll receive the Certificate of Incorporation along with PAN & TAN.
File INC-20A within 180 days after incorporation to start business operations officially.