India’s economic landscape is rapidly evolving, with businesses scaling faster and aiming for global markets. For companies that want to raise capital from the public, expand their shareholder base, and establish strong credibility, the Public Limited Company (PLC) structure is one of the most powerful options.

A Public Limited Company, governed by the Companies Act, 2013, enjoys advantages like raising funds through public issues, limited liability for shareholders, and unrestricted transferability of shares. With 2025 shaping up to be a year of accelerated reforms, digitization, and investor enthusiasm, forming a Public Limited Company in India opens immense growth opportunities.

This blog explores the formation process, advantages, compliance requirements, challenges, and business prospects of PLCs in India, with insights into how Corpzo can help entrepreneurs and enterprises take the leap.

What is a Public Limited Company?

A Public Limited Company is a corporate entity that can:

• Raise capital from the general public by issuing shares.

• Have a minimum of 7 shareholders (no maximum limit).

• Have at least 3 directors.

• Be listed on stock exchanges or remain unlisted.

The biggest differentiator between a public company and a private company is access to public funding and wider ownership.

Key Features of a Public Limited Company

• Separate Legal Entity – Exists independent of its shareholders.

• Limited Liability – Shareholders are liable only up to the unpaid amount on their shares.

• Free Transfer of Shares – Shares can be freely transferred without restrictions.

• Perpetual Succession – Company continues even if shareholders change.

• Transparency & Governance – Subject to stricter compliance, enhancing investor trust.

Why Choose a Public Limited Company in 2025?

1. Access to Capital Markets

Public companies can raise funds via Initial Public Offerings (IPOs), rights issues, and preferential allotments. With India witnessing record IPOs in 2023–24, 2025 is expected to be another IPO boom year.

2. Enhanced Credibility

Public companies are seen as more trustworthy by investors, lenders, and customers.

3. Growth & Expansion Opportunities

The ability to raise large-scale capital fuels business expansion, acquisitions, and R&D.

4. Attracting Investors

Institutional investors, venture capitalists, and foreign investors prefer public companies due to transparency and governance standards.

5. Regulatory Push

With government initiatives like Digital India, Make in India, and Startup India, PLCs have better chances of scaling nationally and globally.

Process of Public Limited Company Formation in India (2025)

Forming a Public Limited Company involves several steps, regulated by the Ministry of Corporate Affairs (MCA):

Step 1: Obtain Digital Signatures (DSC)

All directors must obtain a Digital Signature Certificate to sign electronic forms.

Step 2: Director Identification Number (DIN)

Apply for DIN for each director through the MCA portal.

Step 3: Name Approval

• File RUN (Reserve Unique Name) form to propose the company name.

• Ensure it complies with naming guidelines under Companies Act.

Step 4: Drafting MOA & AOA

• Memorandum of Association (MOA) defines the company’s objectives.

• Articles of Association (AOA) outline rules of internal management.

Step 5: Filing Incorporation Form (SPICe+)

Submit SPICe+ form (INC-32) with MOA, AOA, and other documents.

Step 6: Certificate of Incorporation

Upon approval, the Registrar of Companies (RoC) issues the Certificate of Incorporation, officially recognizing the company.

Step 7: Apply for PAN, TAN & GST

The company must register for PAN, TAN, and GST to begin operations.

Step 8: Open a Bank Account

A current account in the company’s name is mandatory for financial transactions.

Documents Required for Public Company Formation

• PAN card of all directors/shareholders.

• Identity proof (Aadhaar, Passport, Voter ID).

• Address proof (Utility bill, Rent agreement, Property papers).

• Passport-size photographs.

• MOA & AOA signed by promoters.

• Proof of registered office (NOC from owner if rented).

• DSC & DIN for all directors.

Minimum Requirements for Public Limited Company

• Minimum Shareholders: 7

• Minimum Directors: 3

• Authorized Capital: ₹5 lakh (can be increased as per need)

• Resident Director: At least one director must be an Indian resident.

Compliance Requirements for Public Companies in 2025

1. Annual Filings with MCA

   • Form AOC-4 – Filing of financial statements.

   • Form MGT-7 – Annual return of company.

2. Board & General Meetings

   • At least 4 board meetings annually.

   • Annual General Meeting (AGM) is mandatory.

3. Statutory Audit

   • Annual audit by a Chartered Accountant.

4. Income Tax Filing

   • File ITR-6 annually.

5. Other Event-Based Compliances

   • Changes in directors, shareholding, registered office, etc. must be reported to MCA.

Advantages of Public Limited Company

• Large Capital Raising Potential – Through IPOs and public subscription.

• Shareholder Liquidity – Shares are freely transferable.

• Brand Recognition – “Limited” tag boosts reputation.

• Investor Attraction – Strong governance builds confidence.

• Expansion Flexibility – Easy to raise debt and equity funding.

Challenges of Public Limited Companies

• Stringent Compliance – Requires strict adherence to MCA, SEBI, and stock exchange regulations.

• Higher Costs – Compliance, audits, and reporting increase expenses.

• Ownership Dilution – Public issue of shares dilutes promoter control.

• Transparency Obligations – Full disclosure of financials and governance practices is mandatory.

Growth Opportunities for Public Limited Companies in 2025

1. IPO Boom

With increasing investor participation and government reforms, 2025 is projected to see record IPOs across tech, manufacturing, and green energy sectors.

2. Global Investments

India is one of the fastest-growing economies, attracting FDI inflows into public companies.

3. ESG & Sustainability

Public companies focusing on sustainability will attract global investors.

4. Digital Transformation

Tech-driven PLCs will scale faster through AI, automation, and digital governance tools.

5. Government Incentives

Initiatives like PLI schemes (Production-Linked Incentives) encourage industries like electronics, EVs, and renewable energy to form and expand as PLCs.

Public Limited Company vs Private Limited Company

Why Choose Corpzo for Public Limited Company Formation?

At Corpzo, we simplify the incorporation journey with expert guidance and end-to-end support:

• Company Name Approval – Assistance in choosing and securing a unique name.

• Documentation & Filing – Preparation of MOA, AOA, and incorporation forms.

• DIN & DSC Support – Quick application for digital signatures and IDs.

• Regulatory Approvals – Handling MCA queries and approvals.

• Post-Incorporation Compliance – Assistance with PAN, TAN, GST, and bank account opening.

• Affordable Packages – Transparent pricing tailored for startups and enterprises.

With Corpzo, you can focus on your business vision, while we ensure that your company structure and compliance foundation are rock-solid.

Conclusion

In a rapidly growing economy like India, Public Limited Companies are the gateway to raising large-scale funds, achieving high growth, and attracting global investors. With 2025 set to bring new reforms, IPO opportunities, and enhanced investor confidence, forming a public company is a strategic move for ambitious entrepreneurs.

However, navigating the formation process and ongoing compliances requires professional guidance. At Corpzo, we make it simple, affordable, and hassle-free for you to establish your Public Limited Company and unlock new growth opportunities.

? Ready to form your Public Limited Company in 2025? Connect with Corpzo today at www.corpzo.com and take the first step toward building a scalable, investor-ready business.