Hi sameerjade
Yes, you can setup distributed testing with TestComplete & TeamCity.
The General Approach is described here : Integration with CI systems .
At a very high level, you would organise your tests into groups of tests/Test Items, using the Execution Plan.
Then, you can either create a batch/shell scripts leveraging the Command Line Interface to execute each test item, or add commands to TeamCity to trigger the execution.
On the agent machines that will run the tests, you don't necessarily need a TestComplete licence, but you would need to at least have TestExecute (our lightweight runner) installed on each agent to run the tests.
Here is a relevant article from the TeamCity community which may help to get you started.
Hope this helps,
Mike