Public Limited Company

• Can raise unlimited capital from the public through IPO, rights issues, QIPs, and public fixed deposits
• Shares freely transferable on recognised stock exchanges — provides liquidity to investors
• No upper limit on the number of shareholders
• Highest institutional credibility and access to public debt markets (NCD, bonds)
• Suitable for pan-India operations and enterprises with large investor bases
• Prerequisite for listing on NSE or BSE — only public limited companies can be listed on Indian stock exchanges
• Can accept deposits from the public subject to RBI regulations

• Minimum 7 shareholders and 3 directors (no maximum limit on shareholders)
• At least 1 Independent Director (mandatory for listed companies and certain unlisted public companies)
• Minimum authorised capital of Rs.5 lakhs
• Mandatory appointment of Company Secretary as an employee for companies above prescribed thresholds
• For listed companies: compliance with SEBI LODR Regulations — quarterly results, board composition requirements, related party disclosures
• Mandatory Audit Committee, Nomination Committee, and Remuneration Committee for listed entities

1. DSC & DIN: Obtain Digital Signature Certificates and Director Identification Numbers for all proposed directors
2. Name reservation: Reserve name on MCA portal via RUN or SPICe+ Part A — name must not end with "Private" or "Pvt"
3. Draft MOA & AOA: Memorandum and Articles of Association drafted to satisfy public company requirements
4. File SPICe+: INC-32 with eMOA, eAOA, AGILE-PRO for PAN, TAN, GST, and other registrations
5. Certificate of Incorporation: COI issued by MCA Registrar with CIN
6. INC-20A: File within 180 days of incorporation to commence business operations

Timeline: DSC + DIN: 3–5 days | Name approval: 2–5 days | MCA processing: 5–10 days | Total: 10–20 working days

• AOC-4 (Financial Statements): File within 30 days of AGM — public companies must file full financial statements including consolidated accounts
• MGT-7 (Annual Return): File within 60 days of AGM (public companies file MGT-7, not the simpler MGT-7A)
• Statutory Audit: Mandatory auditor appointment; file ADT-1 within 15 days of AGM
• Board Meetings: Minimum 4 Board meetings per year (at least one per quarter)
• AGM: Mandatory within 6 months of financial year-end
• SEBI LODR Compliance (listed companies): Quarterly financial results, corporate governance report, related party transaction disclosures, shareholding pattern disclosures
• DIR-3 KYC: All directors must complete annual eKYC by 30th September

Q: When must a Private Limited Company convert to a Public Limited Company?
A Private Limited Company must convert to a Public Limited Company when it has more than 200 shareholders. Additionally, companies seeking stock exchange listing must convert to public limited structure before filing a Draft Red Herring Prospectus (DRHP) with SEBI for IPO. MFiling manages the conversion process including special resolution, ROC filing, and MCA approval.

Q: What is the minimum capital required for a Public Limited Company?
The Companies Act 2013 requires a minimum authorised capital of Rs.5 lakhs for a Public Limited Company. However, for practical operations and SEBI eligibility for SME listing, companies typically have paid-up capital of Rs.1 crore or more. For main board NSE/BSE listing, SEBI requires a post-issue paid-up capital of at least Rs.10 crore.

Q: Can a Public Limited Company accept fixed deposits from the public?
Yes, subject to RBI regulations and Companies Act provisions on acceptance of deposits. Public companies must obtain a credit rating, issue a detailed information memorandum, and comply with deposit repayment and disclosure requirements. Private Limited Companies cannot accept deposits from the public.