What is a Public Company Firm?
A Public Company Firm is a type of business entity that offers its shares to the general public. It is governed by the Companies Act, 2013, and regulated by the Ministry of Corporate Affairs (MCA) and SEBI (Securities and Exchange Board of India). A Public Company can raise capital from the public by issuing shares and debentures, making it ideal for large-scale enterprises and high-growth ventures.
If you plan to scale your business, raise large funds, or go public through an IPO, forming a Public Company Firm is the right step.
Key Features of a Public Company Firm
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Separate Legal Entity: A Public Company is distinct from its owners.
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Limited Liability: Shareholders' liability is limited to the amount unpaid on shares.
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Minimum 3 Directors and 7 Shareholders required
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Mandatory Compliance: Regular filings with MCA, ROC, and SEBI
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Eligible to raise funds from public via IPO or private placement
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Must include “Limited” as a suffix in the company name (e.g., XYZ Limited)
Documents Required for Public Company Registration
Documents from All Directors & Shareholders:
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PAN Card (mandatory)
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Aadhar Card / Voter ID / Passport / Driving License
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Passport-size photographs
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Email ID and mobile number
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Director Identification Number (DIN)
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Digital Signature Certificate (DSC)
Documents for Public Company Firm:
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Proof of Registered Office Address:
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Memorandum of Association (MOA)
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Articles of Association (AOA)
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Declaration by Directors (Form DIR-2)
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Declaration by Subscribers (INC-9)
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Name approval from MCA (via RUN)
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Affidavit and Consent forms (DIR-2 & INC-9)
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Details of share capital and proposed business activities
Step-by-Step Process of Public Company Registration
1. Digital Signature Certificate (DSC)
2. Director Identification Number (DIN)
3. Name Reservation (RUN Form)
4. Filing SPICe+ Form with MCA
5. Certificate of Incorporation (COI)
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Issued by the Registrar of Companies (RoC)
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Includes CIN, PAN, and TAN
6. Post-Incorporation Registrations
Time Involved in Public Company Firm Registration
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Step
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Estimated Time
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DSC & DIN
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2–3 Days
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Name Reservation (RUN)
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2–3 Days
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Filing Incorporation Forms
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3–5 Days
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Certificate of Incorporation
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1–2 Days post-verification
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PAN, TAN, and other Licenses
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3–7 Days
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Total Duration: 7 to 15 working days
Advantages of Registering a Public Company Firm
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Ability to raise funds through IPO and public investments
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Separate legal entity with perpetual succession
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Limited liability for shareholders
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Enhanced credibility and transparency
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Easier access to loans and government schemes
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Scalability and brand recognition
Disadvantages of a Public Company Firm
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Complex incorporation process
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Higher compliance and disclosure norms
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Mandatory audits and ROC filings
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Regulatory scrutiny from SEBI and MCA
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Public accountability
Top 15+ FAQs on Public Company Firm
1. What is a Public Company Firm?
A Public Company Firm is a company that offers its shares to the general public and is registered under the Companies Act, 2013.
2. How many directors are required to form a Public Company?
Minimum 3 directors and 7 shareholders are mandatory.
3. Is it mandatory to have a physical office address for registration?
Yes. A registered office address in India is mandatory with proper utility bill proof.
4. Can NRIs or foreign nationals be directors in a Public Company?
Yes, subject to compliance with FEMA and FDI guidelines.
5. Can a Public Company raise funds from the general public?
Yes, it can raise capital through IPOs, private placement, and public subscription.
6. Is it necessary to register with SEBI?
Only if the company plans to list on the stock exchange or raise funds from public investors.
7. How is a Public Company taxed?
It is taxed at a flat 25% (if turnover is under ₹400 Cr) or 30% (if over ₹400 Cr), plus surcharge and cess.
8. What is the minimum capital required to start a Public Company Firm?
As per Companies Act, there is no minimum capital limit now, but practically, companies start with at least ₹1 lakh.
9. Can a Public Company be converted into a Private Limited Company?
Yes, after passing a special resolution and following the ROC conversion process.
10. Is annual filing mandatory for Public Companies?
Yes. Annual returns and financial statements must be filed every year with ROC.
11. What are the compliance requirements for a Public Company?
Board meetings, general meetings, auditor appointments, ROC filings, and audit reports are mandatory.
12. Can a Public Company operate across India?
Yes, it can operate across India and even internationally with proper permissions.
13. Is audit mandatory for a Public Company Firm?
Yes, all Public Companies must undergo statutory audits.
14. Can a Public Company hold assets or property in its name?
Yes, being a separate legal entity, it can hold property in its own name.
15. Can I start a Public Company alone?
No, you need at least 7 shareholders and 3 directors.
16. How do I check if my Public Company name is available?
Name availability can be checked on the MCA portal before filing RUN form.
Conclusion: Launch Your Public Company Firm with Confidence
If you're aiming for a large-scale, growth-oriented, and investment-friendly business structure, forming a Public Company Firm is your best bet. It provides unmatched flexibility in raising capital and ensures a professional image in the business world.
✅ Get expert help today to register your Public Company quickly and compliantly. From DSC to MCA filings, we manage the complete process for you.
📞 Contact us now for a free consultation and start your Public Company registration with ease!
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