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A public limited company (PLC) is a type of business entity that is owned by shareholders. PLCs are listed on a stock exchange, which means that their shares can be bought and sold by the public. This gives PLCs access to a large pool of capital, which can be used to grow the business.

The registration of a public limited company (PLC) in India.

  1. Choose a name for your company. The name of your company must be unique and cannot be the same as the name of any other company already registered in India.
  2. Reserve your company name. Once you have chosen a company name, you need to reserve it with the Ministry of Corporate Affairs (MCA).
  3. Appoint directors and shareholders. A PLC must have at least three directors and seven shareholders. The directors and shareholders can be individuals or companies.
  4. Obtain a digital signature certificate (DSC). A DSC is an electronic signature that is used to sign digital documents.
  5. Pay the registration fees. The registration fees for a PLC are based on the authorized capital of the company.
  1. Obtain the certificate of incorporation. Once the MCA has approved your application, you will be issued a certificate of incorporation



  1.  Limited liability: The shareholders of a PLC have limited liability, which means that their personal assets are not at risk if the company goes bankrupt.
  2. Ability to raise capital: PLCs can raise capital by issuing shares to the public. This can be a great way to grow your business and expand your operations.
  3. Credibility and trust: PLCs are seen as more credible and trustworthy than other types of business entities. This can be important for securing contracts and other business opportunities.
  4. Ease of transfer of ownership: Shares in a PLC can be easily transferred to another person or entity. This makes it easy to sell your shares or bring in new investors.
  5. Access to government contracts: PLCs are often eligible to bid on government contracts. This can be a great way to generate revenue for your business.


  1. High compliance costs: PLCs are subject to more stringent regulations than other types of businesses. This means that they have to comply with a number of additional laws and regulations, which can be costly.
  2. Loss of control: The shareholders of a PLC have a limited say in the management of the company. The board of directors has the ultimate authority to make decisions about the company.
  3. Liability for the debts of the company: Even though the shareholders of a PLC have limited liability, they can still be held liable for the debts of the company if they have acted in a fraudulent or negligent manner.
  4. Dilution of ownership: If a PLC issues new shares, the existing shareholders will see their ownership diluted. This means that they will own a smaller percentage of the company.
  5. Public scrutiny: PLCs are subject to public scrutiny. This means that their financial statements and other documents are available to the public.


A public restricted organization is typically settled to produce capital from outside sources, for example the overall population for starting a business, business development, mechanical headway. worldwide development, and so forth

Yet, a PLC is more reasonable just to the enormous associations which have a far-reaching viewpoint and higher development prospects, instead of a little shop situated nearby.


  1. Provide Limited liability and Ability to raise capital of Firm.
  2. Help you to ease of transfer of ownership.
  3. Generate revenue for your business.
  4. Reduces Liability for the debts of the company