Section 8 Registration

Introduction In company law, two common types of companies are private and public companies. It is crucial to understand the distinctions between these entities to make informed decisions regarding business structure and compliance. This article aims to provide a clear and concise explanation of the key differences between private and public companies. Ownership and Shareholders One of the primary differences lies in the ownership structure and the number of shareholders. A private company requires a minimum of two shareholders and can have a maximum of 200 shareholders. On the other hand, a public company must have at least seven shareholders, and there is no maximum limit on the number of shareholders. Capital and Fundraising Private companies cannot invite the public to subscribe to their shares or raise funds from the general public through an Initial Public Offering (IPO). Their shares are typically held by a small group of founders, friends, and family members. Public compani...

Introduction Forming a company in India involves a systematic procedure that ensures legal compliance and establishes a strong foundation for business operations. This comprehensive guide provides an overview of the complete procedure to form a company in India, outlining each step involved. Step 1: Decide the Type of Company The first step is to determine the type of company you wish to form. In India, common types include private limited company registration , public limited company, one person company (OPC), and limited liability partnership (LLP). Consider the nature of your business, ownership structure, and liability preferences to choose the appropriate type. Step 2: Director Identification Number (DIN) and Digital Signature Certificate (DSC) To register a company, directors must obtain a Director Identification Number (DIN) from the Ministry of Corporate Affairs (MCA). Additionally, directors and shareholders need a Digital Signature Certificate in Hyderabad (DSC) to sign ele...