How to Start a Bajaj Dealership in India
09 Jul, 2025
Starting a public limited company does not have to be expensive. With updated laws and supportive policies, businesses can now go public without draining their finances. It is an ideal way to build credibility, attract investors, and expand with confidence, while keeping your start-up costs low. Whether you are a growing brand or a first-time founder, going public is more accessible than ever. In this article, you will learn how to start operating a public limited company with low cost.
A Public Limited Company (PLC) is a business entity registered under the Companies Act, 2013 that offers its shares to the general public. These companies are listed on stock exchanges and can raise capital by selling shares to investors. A public limited company has limited liability, meaning shareholders are only liable up to the amount they invest. It requires at least seven members and three directors, with no upper limit on shareholders. PLCs must follow stricter compliance, file detailed financial reports, and maintain transparency. This structure suits medium to large businesses aiming for growth, public trust, and wider fundraising.
Let us discuss the basic requirements to start a public limited company in India:
There must be at least seven shareholders and three directors in a public limited company. Among these directors, at least one must be an Indian resident. Shareholding is open to both Indian and foreign nationals under the permitted FDI rules.
There is no minimum paid?up capital required. However, the minimum authorised share capital must be Rs. 100,000 (Rs. 1 lakh) when applying for incorporation, per the Companies Act and MCA guidelines following the 2015 amendment.
The company name must be distinct and not infringe trademarks or existing company names. Organisers need to prepare and submit the Memorandum of Association (MOA) and Articles of Association (AOA) outlining objectives and internal rules.
At least one director must hold a Digital Signature Certificate (DSC) to sign e-forms online. All the proposed directors should obtain a Director Identification Number (DIN). Additionally, identity and address proofs (PAN, Aadhaar, passport), photos, registered office proof, and landlord’s NOC must be submitted.
The company must declare a registered office address in India, where documents and notices can be officially served. This can be residential or commercial, backed by a recent utility bill and a lease/purchase agreement.
Here is the process to start operating a public limited company with low cost:
Step 1: Secure Digital Identity
All proposed directors and subscribers must apply for a Digital Signature Certificate (DSC) to sign forms electronically. Costs range from Rs. 1,000–1,500 per DSC, and processing is quick, often within 1–2 days.
Step 2: Obtain Director Identification Number (DIN)
DIN is necessary for all directors. It can be obtained through the SPICe+ incorporation form, simplifying the registration process.
Step 3: Reserve Your Company Name
Choose and reserve a unique and compliant company name using SPICe+ Part A or RUN service on MCA’s portal. Be sure it doesn’t infringe any trademark or resemble existing names.
Step 4: Prepare Key Documents
Draft a Memorandum of Association (MoA) and Articles of Association (AoA) outlining your company’s purpose, governance, and rules. These are mandatory for incorporation.
Step 5: Gather Identity & Address Proof
Collect PAN card, Aadhaar or passport, passport-sized photos for directors and shareholders, plus utility bills (electricity, phone) and landlord NOC for your registered office. These documents authenticate your company’s identity and address.
Step 6: File SPICe+ Form
SPICe+ integrates all initial filing, DIN allotment, name reservation, MoA/AoA submission, PAN/TAN application, and aid with bank GST/EPF registrations. Fees for form filing range around Rs. 500, plus modest stamp duty depending on the state and nominal share capital.
Step 7: Receive Certificate of Incorporation
Once the Registrar reviews and approves the form, you will receive the Certificate of Incorporation containing your CIN, company name, and date of formation.
Step 8: Finalise Post-Incorporation Formalities
Apply for PAN and TAN, as this often occurs automatically via SPICe+. You must also do the following:
Launching a public limited company doesn’t require breaking the bank. Here is how you can save smartly at each stage:
Leverage Digital Filings & SPICe+
Use the MCA’s SPICe+ form to complete all incorporation needs—DIN, name reservation, MoA/AoA filing, PAN/TAN, online in one go. Government filing fees are minimal; for share capital up to Rs.1 lakh, it is nearly free.
Keep Authorised Share Capital Low
India’s 2015 amendment removed paid?up capital requirements, but a minimum authorised capital of Rs.1 lakh still helps save on stamp duty. Lower share capital means lower state stamp charges—sometimes just a few thousand rupees.
Opt for DIY for Routine Tasks
Handle simple tasks yourself where possible:
These steps reduce reliance on professional services, as many Reddit founders suggest DIY is doable and can save Rs. 5000–8000.
Bundle Professional Services Wisely
Use fixed-cost CA/CS packages for content like MoA/AoA, SPICe+ filing, and GST registration. Typical bundled fees start around Rs. 10,000 –15,000, avoiding open-ended billing. Start-up India recognition may give fee rebates.
Minimise Stamp Duty Fees
Stamp duty varies by state. By keeping authorised capital low, you reduce stamp duty on MoA/AoA—coupling it with low-cost e-stamping, you can limit this to Rs. 2000–5000.
Avoid Unnecessary Add?on Services
Separate essentials from extras. Reviews show founders often pay Rs. 1000 extra for things like Udyam or DSC renewals, which they could do themselves. Skip marketing packages and pitch decks until your needs are confirmed.
Use Virtual Office & Home Address
Rent a small space, a coworking hot desk, or your own residence as the registered office to avoid high rental costs—Rs.1000 – 10,000/month instead of Rs. 20,000 for commercial space
Plan Compliance to Avoid Penalties
Late form filings attract Rs. 100–500 per day. Scheduling uploads early prevents fines and rework. Yearly returns, TDS, GST, and audits can be bundled under one CA/CS package (Rs. 10,000 – 30,000 annually).
Track Hidden Compliance Costs
Apart from filing, budget Rs. 5000 – 10,000 annually for audit, bank KYC, and routine returns. Early estimates plus bundled CA packages help you avoid surprise costs.
Let us discuss the benefits of starting a public limited company with low cost:
Launching a public limited company is exciting, but skipping small steps can lead to big trouble. Here are the common mistakes to avoid in a public limited company setup:
Starting a public limited company doesn't have to be expensive. With the right strategy, smart planning, and digital tools, you can launch a credible, growth-ready business without overspending. From legal protection to investor trust, the benefits are big, even on a budget. Embrace the cost-effective route and unlock new opportunities while staying compliant and future-focused. This article provided you with detailed information on how to start operating a public limited company with low cost. Contact Online Legal India to get assistance and support in filing a public limited company registration from professional experts.