Private Limited Company is a Company which can not invite general public to subscribe its Securities/ Share’s.
There is no minimum limit of Paid-up Capital to form Private Limited Company.
Minimum Authorized Capital- Rs.1 lakh.
Number of Directors- Minimum 2 and Maximum 15, Provided that Company may appoint more than fifteen directors after passing a special resolution.
At least One Director must be Indian Resident.
Number of shareholders- Minimum 2 and Maximum 50.
The liability of a shareholder extends only up to the number of shares held by them.
Public Limited Company:-
Public Limited Company is a Company which is not a Private Limited Company and can invite general public to subscribe its Securities/ Share’s.
Minimum Authorized Capital- Rs.5 lakh.
Number of Directors- Minimum 3 and Maximum 15, Provided that Company may appoint more than fifteen directors after passing a special resolution.
At least One Director must be Indian Resident.
Number of shareholders- Minimum 7 and Maximum unlimited.
Shares of Public Limited Company can be listed on Recognized Stock Exchange.
One Person Company (OPC):-
As the name itself suggests it is a company which is owned by single person which must be Indian Resident.
OPC has only one person as to its member/shareholder.
One/Single person can become the Shareholder and Director of One Person Company.
There is no minimum limit of Paid-up Capital to form One Person Company, but if paid up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, then the OPC has to mandatorily convert itself into private or public company.
Minimum Authorized Capital- Rs.1 lakh.
Number of Directors- Minimum 2 and Maximum 15, Provided that Company may appoint more than fifteen directors after passing a special resolution.
Section-8 Company:-
If the Company is incorporated with the aim to promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any other similar activities, such Company called as Section-8 Company.
Profits/Income derived by Section-8 Company will be apply in the Activities prescribed by its Memorandum of Association i.e. charitable activities.
Section-8 Company cannot distribute profits as Dividends to its Members.
Section-8 Company can take the tax benefits prescribed u/s 12AA and 80G of Income Tax Act-1961.
There is no minimum limit of Paid-up Capital to form Section-8 Company.
Limited Liability Partnership (LLP):-
LLP is an alternative corporate partnership business form that gives the benefits of limited liability of a company and the flexibility of a partnership.
It has a separate legal entity just like companies.
As word suggests the liability of each partner is limited to the contribution made by partner.
There is no minimum limit of Contribution to form LLP.
Number of Partners- Minimum 2 and Maximum Unlimited.
At least Two Designated Partners shall be mandatory for the LLP.
At least One Designated Partner must be Indian Resident.
The mutual rights and duties of partners shall be governed by the agreement between partners. This Agreement would be known as “LLP Agreement”.
