Two or more person join together can form a Private Limited Company which is the most visible corporate format in India. The Companies Act, 2013 and the Companies Incorporation Rules, 2014 prescribes the procedure for incorporation of Private limited company.  The Companies act 2013 and various Rules framed under it  provide a legal framework for incorporation, management and administration of such companies. Individuals and non individuals like Indian and foreign  Companies etc can become the shareholders of such companies. The  minimum number of persons required to form a company is two  and it can have shareholders upto a number of Two hundred.  The management of company is administered by Board of directors. d Private Limited companies are one of the most attractive venue for  Foreign Direct Investment.


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Public Limited Company  is registered under the Companies Act, 2013  which can do the business  on  Pan India basis. It is a separate entity different from its promoters who can be individuals or non individuals  like Companies or LLPs. The shares of the Public Company can be listed in stock exchanges and make general public its co-owners with its promoters. It is called public companies because of  the large participation of general public in its capital and the utilization of public fund for its operation. Being capital intensive and   larger geographical coverage, success of such public companies will impact general public also. Depending on the listing of its securities like share or debentures such companies will be further classified as Listed Public Companies and Unlisted Public Companies. The compliance requirement of public companies  are more due to the larger public involvement, wider shareholding and public fund utilization. Unlike private companies, shares of the public companies are freely transferable. Compulsory dematerialization of the shares of the public companies, eases the process of  transfer of such shares.  


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The Companies Act, 2013 has  paved the way for introduction of  One Person Company (OPC)  in Indian  corporate world which it was eagerly waiting for.  It is a legally sanctioned and chartered form of a Proprietary Business with limited liability to its sole shareholder. A resident individual who is an Indian citizen is entitled to start  a One Person Company (OPC)  with the name and objectives which he chose. It is a separate legal entity different from its sole promoter with  limited liability.


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Section 8 of the Indian Companies Act 2013 permits to register companies with charitable motive with objective of  promotion  of commerce, art, science, social welfare, sports, research, religion, charity,  education, protection of environment or any similar  objective and they are not permitted  to make any profit.

A Section 8 Company  can carry on commercial activities and the surplus derived from such activities shall apply for promotion of its objects. They are not permitted to distribute its surplus to its shareholders in the form of dividend. Such companies are not required to keep the words Limited or Private Limited  as part of its  name.

Section 8 Companies  can be registered as private or public company depending the number of its shareholders .


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