Public Company Registration
A public company, also known as a publicly traded company or corporation, is an entity whose ownership is dispersed among the general public through the sale of shares of stock on a public stock exchange. These shares are freely traded among investors, allowing anyone to become a partial owner of the company by purchasing shares.
Public companies are typically larger and more established entities compared to private companies. They often have a broad base of shareholders, ranging from individual investors to institutional investors such as mutual funds, pension funds and hedge funds.
Public companies have access to capital markets for raising funds through the issuance of additional shares or debt securities. This access to capital can facilitate growth, expansion, and investment in new projects or ventures.
Download Report
Characteristics of a Public Company
- A Public Company is a lawful business entity that has a separate identity from its member/Â shareholder.
- shareholders of a public company can easily transfer its shares to other shareholders limited to the extent of shares held by them. In the event of any loss, shareholders are not personally liable.Â
- Public Company must use the word “LIMITED” in the end of the name of the companyÂ
- A Prospectus can be issued to the public to subscribe to its shares by registering a public company
- 7 number of members is required to form a public company. there is no upper limit for members. Â

Requirements and Eligibility Criteria for a Public Company Registration
- At least 7 shareholders
- At least 3 Directors
- Fully Constructed and lockable registered office premises
- Adequate Capital for Running of Company ( No Prescribed Limit by Ministry of Corporate Affiars)
- Compliance with Regulatory Authorities
Documents Required for a Public Company Registration
- Documents of Promoters (PAN, Aadhar, Photo, Bank Statement
- Office Address Proof (Utility Bill with NOC)
- Proposed Objects of Company
- Digital Signature of All Subscriber cum Director
- Financial Statements and Audit Reports
Advantages of Public Company Registration

Access to Capital

Shareholders Liquidity

Enhanced Visibility and Prestige

Brand Recognition and Market Expansion

Talent Attraction

Regulatory Compliance
Disadvantages of Public Company Registration
- Restrictions on Profit Distribution
- Stringent Regulatory Compliance
- Limited Flexibility in Operations
- Challenges in Fund raising
- Potential Public Scrutiny
Frequently Asked Questions
A public company is a corporation whose ownership is dispersed among the general public in the form of publicly traded shares of stock.
A company goes public through a process called an initial public offering (IPO), where it offers shares of its stock to the public for the first time.
Benefits include access to capital markets, increased liquidity for shareholders, enhanced visibility and prestige, and attraction of talent through stock-based incentives.
Disadvantages include increased regulatory compliance costs, greater scrutiny from investors and regulators, and pressure to meet shareholder expectations for financial performance.
Public companies have shares traded on stock exchanges, are subject to stringent regulatory requirements, and have a broader base of shareholders compared to private companies.
Shareholders own the company and have voting rights based on their share ownership. They elect the board of directors and vote on major company decisions.
Public companies raise capital by issuing shares of stock to investors through IPOs or subsequent stock offerings.
Public companies must regularly disclose financial information such as quarterly and annual reports, audited financial statements, and material events affecting the company.
Regulatory requirements include financial reporting, disclosure obligations, compliance with securities laws, and adherence to corporate governance standards.
Public companies must regularly disclose financial information such as quarterly and annual reports, audited financial statements, and material events affecting the company.
Public companies are governed by a board of directors elected by shareholders, which oversees management and strategic decisions.
The CEO is responsible for day-to-day operations, while the chairman leads the board of directors and ensures corporate governance.
Stock exchanges provide a platform for trading shares of public companies, facilitating liquidity for shareholders and establishing market prices for stocks.
Insider trading involves trading securities based on material, non-public information. Public companies must prevent insider trading among their employees and executives.
During an IPO, a company sells shares to institutional and retail investors for the first time, raising capital and becoming publicly traded.
Stock prices are determined by supply and demand in the stock market, influenced by factors such as company performance, industry trends, and investor sentiment.
Risks include market volatility, economic downturns, industry competition, regulatory changes, and company-specific factors such as management missteps or financial challenges.
Public companies may implement CSR initiatives to address environmental, social, and governance (ESG) issues, enhance their reputation, and meet stakeholder expectations.
Common stock represents ownership in the company and voting rights, while preferred stock typically offers priority dividends and liquidation preference but no voting rights.
Public companies may engage in mergers and acquisitions to expand their business, increase market share, or achieve strategic goals, subject to regulatory approval and shareholder consent.
Why choose us
Public Company Registration Services
Welcome to our Public Company Registration Services section. Our experts can guide you through the entire process and help you get your business up and running as soon as possible.