1. Yes, Wholly-Owned Public Limited Companies Are Allowed

• A Public Limited Company can be wholly owned by another company, including another public or private limited company.
  
• This means 100% of its shares can be held by a single corporate entity, whether Indian or foreign.
  
• However, despite being wholly owned, it must still comply with all the requirements applicable to public companies, including the minimum number of directors and shareholders.
  

2. Shareholding and Member Requirements

• Legally, a Public Limited Company must have a minimum of 7 shareholders.
  
• In practice, even in a wholly-owned scenario, the holding company may nominate individuals or entities to hold shares on its behalf, often acting as nominees.
  
• These shareholders are often legally separate but act under the direction of the parent company, maintaining compliance with the Companies Act, 2013.
  

3. Applicability of Public Company Rules

• Even if fully owned by another company, the entity is still classified as a Public Limited Company, not a private one.
  
• It must comply with public company norms such as:
  
  • Minimum 3 directors
    
  • Statutory disclosures and filings
    
  • Audit and governance standards
    
  • Restrictions on inter-corporate loans and related party transactions
    
• It cannot claim the exemptions available to private companies.
  

4. Listing Is Not Mandatory

• A Public Limited Company is not required to be listed on a stock exchange.
  
• A wholly-owned public company can remain unlisted, and the parent company can hold all its shares privately.
  
• Listing is a separate decision and not a legal requirement for public company status.
  

5. Use Cases and Strategic Purpose

• Companies create wholly-owned public subsidiaries for business expansion, strategic control, or regulatory advantages.
  
• It may help in structuring large corporate groups, separating liability, or preparing a subsidiary for future public listing or investment.
  
• Foreign companies may form such entities to operate in India under FDI regulations, while maintaining control.