Company Formation/Registration is the term for the process of incorporation of a business. It is termed as “Company Registration”.
Classification of company FORMATION:
On the Basis of Membership Pattern / Size:
- Public Limited Company
- Private Limited Company
PUBLIC LIMITED COMPANY:
Conditions to be Public Limited are as follows:
- Has a minimum paid up capital of Rs 5 Lakhs or such higher capital as may be prescribed;
- To Convert from Private Companies :
- 25% or more its paid up share capital
- Average Annual Turnover during the last 3 years exceeds Rs 25 Crores.
- When it accepts the deposits from the public after making an invitation by an advertisement.
PRIVATE LIMITED COMPANY:
Conditions to be Private Limited are as follows:
- Has a minimum paid up capital of Rs 1 Lakhs or such higher capital as may be prescribed;
- Limit the number of its member to 50.