Everything You Need to Know About Public Limited Company Registration in Delhi
A public limited company registration in Delhi allows a corporation to raise capital by issuing shares to the general public. This business structure is suitable for entrepreneurs wishing to grow on a bigger scale. Shareholders have limited liability, which means their financial responsibility is limited to the unpaid balance on the shares they own. The Companies Act of 2013 regulates this type of business, and it is overseen by the Ministry of Corporate Affairs.
Key Requirements for Public Limited Company Registration in Delhi:
- Minimum of 7 shareholders is required to incorporate the company
- At least 3 directors, with one being a resident of India
- Directors and shareholders can be the same individuals
- Authorized capital must be at least ₹5,00,000
- All directors must have a valid Director Identification Number (DIN)
- Each director needs a Digital Signature Certificate (DSC)
- A valid registered office address in Delhi is required
Starting your journey with a public limited company registration in Delhi ensures credibility, better access to funding, and long-term business scalability.
Advantages of Becoming Public Limited Company
Separate Legal Existence
The Company is considered as artificial person created by law, thus the existence of Public Limited Company is distinct from its members, it enjoys its own identity, and thus it can sue or being sued in its own name and it can also possess the assets in its name.
Limited Liability
The characteristic of Limited Liability is like cherry on the cake, the shareholders enjoy the privilege of having liability limited only up to the amount of shares subscribed, hence unlike Partnership Firm,investors are attracted to this kind of form of business.
No Minimum Capital Requirement
There is a misbelief that one requires huge investments to start a Private Limited Company, though in reality there is no minimum capital requirement, one can start a Private Limited Company even with minimal amount.
Ease of Raising Fund
A Public Limited Company can easily raise capital through the issue of shares from the public. Public is more attracted for the investment in a public company as the shares are easily transferable. Also the debt finance is easily available to a public limited company.
Perpetual Existence
The existence of Private Limited Company is not dependent on any factor, hence members and directors of the company may change but it will not affect the status of the Company.
Comparison
| Topics | Public Limited Company | Private Limited Company |
| Members / Shareholders | Minimum: 7 Maximum: No Limit | Minimum: 2 Maximum: 200 |
| Directors | Minimum: 3 | Minimum: 2 |
| Public Invitations | Yes | No |
| Issuance Of Prospectus | Required | Not Required |
| Name Variances | Must have ‘Limited’ at the end of its name | Must have PVT. LTD. at the end of its name |
| Mandatory Statutory Meeting | Yes | No |
| Managerial Remunerations | There are no as such restrictions | Cannot exceed the limit of 11% of its net profit |
| Stock Exchange | Can be enlisted in the stock exchange & conduct the Stock Trade publicly as per the Director’s preferences |
Not listed on stock exchange neither carry out stock trade publicly |