Different Kinds of Companies

Basically there are three kinds of companies which can be registered under companies Act. these are
  1. Private Companies
  2. Public Companies
  3. One Person Company

1. Private Companies

  • Minimum paid up share capital of INR 100000 required.
  • Minimum 2 persons required to form a private company. Total number of members in a private company should not exceed 200 except in case of one person company.
  • Right to transfer of shares in a private company is restricted.
  • A private company can only accept deposit from its members in accordance with section 73 of Companies Act, 2013.
  • The word 'Private Limited' should be added at the end of its name by a private company.

2. Public Companies

  • Minimum paid up share capital of INR 500000 required.
  • Minimum 7 persons required to form a public company.
  • Any subsidiary of a public company shall be treated as a public company even if such subsidiary company is a private company.

3. One Person Company  

  • One Person Company is a company having a single person as a member.
  • A One Person Company can not incorporate or convert to Section 8 company.
      For the details of 'One Person Company', visit this article One Person Company(OPC)

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