Public Limited Company

Public Limited Company

A public limited company is a business that is managed by directors and owned by shareholders. A public limited company can offer shares to the public. There are also other obligations that a PLC must meet due to being public, including further admin regarding tax, and making their financial reports public so would-be shareholders have all the information they need before investing.

A public limited company is also listed on the stock market and essentially needs to be more open and public about its details than a private company.

Public Limited Company
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Public Limited Company Details

Advantages of Public Limited Company

Businesses choose to become a public limited company because the pros of this new structure outweigh the cons.

  • The company can raise capital through share sales
  • This raised capital can fund expansion and new opportunities
  • Capital can also be used to pay off debt
  • Publicity increases brand awareness
  • Listing on the stock market can increase company reputation and prestige
  • Public records can make it easier to attract business partners
  • Sense of transparency can improve customer perception of brand

Disadvantages of public limited company

  • Two directors are needed for a PLC, whereas a Ltd only needs one
  • More regulated both for taxes and Companies House
  • HMRC tax deadlines are shorter for public companies
  • Unlike Ltd’s company secretaries, a PLC’s company secretary must be fully qualified
  • Shareholders can be anyone who chooses to purchase, which can dilute a unified company vision
  • More vulnerable the more shareholders there are, the more power has been distributed
  • A public limited company must hold an annual general meeting

Requirements for Registration of a Public Limited Company

There are various rules and regulations prescribed under the companies act, 2013 for the formation of a public limited company. Here is what you should keep in mind when registering a public limited company:

  • Minimum 7 shareholders are required to form a public limited company.
  • Minimum of 3 directors is required to form a public limited company. A minimum share capital of Rs. 5 lakhs is required.
  • Digital signature certificate (DSC) of one of the directors is needed while submitting self-attested copies of identity and address proof.
  • Directors of the proposed company will need a DIN.
  • An application is required to be made for the selection of the name of the company.
  • An application comprising the main object clause of the company is to be made. This object clause will define what a company will pursue after its incorporation.
  • Submission of the application to ROC along with the required documents like MOA, AOA, duly filled Form DIR – 12, Form INC – 7 and Form INC – 22 is needed.

Requirement to Start a Public Limited Company


As per the provisions of the Companies Act, 2013 to start a public limited company, a minimum of 3 directors are required and there is no restriction on the maximum number of directors.

Limited Liability

The liability of each shareholder is limited. The company does not offer immunity to the shareholders. The shareholders will be held responsible for their own illegal actions.

Paid-up Capital

A public limited company is required to have a minimum paid-up capital of Rs 5 lakh or such a higher amount as prescribed under the act.


It is a compulsory requirement under the Companies Act, 2013 for all public limited companies to add the word ‘limited’ after their name.