A Public Limited Company can invite the public to subscribe to its shares and its shares can be freely transferred. It carries more governance and filing requirements than a private company.
Who it suits
Businesses planning to raise money from the public or to list on a stock exchange. Most small and growing businesses begin as a Private Limited Company and convert later.
Basic requirements
- At least 3 directors, of whom at least one must be a resident in India.
- At least 7 members (shareholders); there is no upper limit.
- A company name ending with “Limited”.
- A registered office in India, along with the Memorandum and Articles of Association.
How it differs from a private company
- Shares can be offered to the public and transferred freely.
- More directors and members are needed.
- Additional governance, disclosure and meeting requirements apply, depending on the company's size and whether it is listed.
The process
Registration follows the same MCA route as other companies: DSC, name approval, the incorporation form with MOA and AOA, and the Certificate of Incorporation. If you already own a private company, converting it may be simpler than starting fresh.
Common questions
Do I need a public company to raise investment?
Not usually. Investors commonly invest in Private Limited Companies. A public company becomes relevant when you plan to raise money from the public.