Public Limited Company

The Company is a Public Limited Company which is incorporated under companies Act and has minimum paid-up capital of Rs. 5 lakhs. In a public limited company, minimum number of shareholders is 7 and minimum number of director is 3. A public limited company can offer its share in open market. Its shareholders have limited liability toward its debt and loans. It usually has the words 'Limited' at the end of its name. It is also a popular form of business entity. Under the Companies Act, 1956, a Public limited company has the following characterises:

  • A separate legal entity
  • Minimum number of shareholders is 7. There is no upper limit on maximum number of shareholders.
  • Minimum number of directors is 3.
  • A public limited company can issue its shares in public through initial public offer.
  • Shareholders can sell/transfer their shares freely.
  • A public company can accept deposits from public subject to the compliance of the Companies Act and other regulations.
  • Operations of public limited companies are subject to compliance of many restrictive provisions of the Companies Act.
  • Foreign Direct Investment is permissible.
  • Private Limited Company

    A private limited company is the most reputed form of carrying business in India. The minimum number of members in private limited company is 2 and maximum number of members is restricted to 50. A private limited company is considered as a separate legal entity. A private limited company name ends with ‘Private Limited’.

  • Section25 Company

    This section empowers the Central Government to grant a license directing that such an association may be registered as a company with limited liability, without the addition of the Words `Limited’ or `Private Limited’ to its name.

  • Limited Liability Partnership

    A Limited Liability Partnership (LLP) is a one form of body corporate which was introduced in India by the Limited Liability Partnership Act, 2008.