Incorporating a Public Limited Company is a suitable option for large scale businesses that require huge capital. There should be a minimum of seven members with no limit on maximum number of members/shareholders for starting a Public Limited Company.
Usually, Public Limited Companies get listed with stock exchanges to raise capital from the general public. This is why Public Limited Companies have to comply with multiple regulations of the government and starting a public limited company becomes a cumbersome process.
A Public Limited Company is defined under Section 2(71) of the Companies Act, 2013 as:
Note : Under the Companies Act, 2013, a subsidiary company shall be deemed to be a public company if it is not a subsidiary to a private company, even if it is a private company as per its articles.
|Minimum Paid-up share Capital||INR 5 Lakhs|
|Minimum number of Directors||3|
|Maximum number of Directors||50|
|Minimum number of Shareholders||7|
|Maximum number of Shareholders||No Limit|
It is necessary that all the documents pertaining to registration of a Public Limited Company are in order to avoid any legal complications later on.