1. Public ltd companies add “limited” as suffix after their names
2. Minimum three directors
3. General Public can invest in the company
4. Liability of the shareholders is limited to the amount invested by them
5. Minimum required paid up capital should be Rs. 5 lakhs or higher amount as prescribed under the Act
6. A prospectus of the public company is the mirror of affairs of the company

• Easy and free transfer of shares by shareholders
• Easy to get financial assistance from banks and other financial institutions
• Registered companies can own a property
• Easy exit policy for the shareholders
• General public can invest money which increase capital and business opportunities
• Separate legal identity: A registered company holds a position of separate legal identity and can sue or be sued on its own name
• Perpetual existence means existence of the company does not depend upon any director, shareholder or any other member
• No maximum limits: A public company holds no maximum limit on the following:

1. Capital

2. Shareholders

3. Limited liability of its members

• Minimum 3 directors
• One resident director in India
• Minimum 7 shareholders
• A minimum share capital of Rs. 5 lakhs
• A unique name for the company

STEP 1: Apply and obtain DSC (Digital Signature certificate) and DIN (Director Identification Number) of all the directors.

STEP 2: Apply for the approval of the name the company through RUN (reserved unique name) application which will be verified by the Registrar.

STEP 3: Draft the memorandum of association (MoA) and articles of association (AOA)

STEP 4: Apply for the license and incorporation of the company through form SPICe (INC-32) along with the required documents.    

STEP 5: Apply for PAN, TAN and Bank Account opening.

• It has more compliances than a private limited company
• No decision can be made without passing a proper resolution
• A larger number of people means more minds and more conflicts.
• Easy exits of shareholder hit the stability of the company
• Preparation and maintenance of statutory documents is stricter as compared to private limited company.
• It has more regulatory requirements and compliance
• It requires higher levels of transparency

In case, a director is a foreign national then his/ her documents are required to be validated accordingly:

1. Notarized, in case the person is a resident of a commonwealth company.
2. Notarized & Apostilled in case the person is a resident of a country which is signatory to Hague convention, 1960 (Convention Abolishing the Requirement of Legalization for Foreign Public Documents)
3. Notarized & consularization in case the person is a resident of a country which is not covered in any of the above-mentioned categories.

For the registered office:

1. Rent agreement/ Lease agreement
2. NOC from the owner of premises
3. Latest utility bills