PRIVATE LIMITED COMPANY
- The private limited company is governed by section 2 (68) of Companies act 2013 and relevant rules.
- It is a form of Business in which a small group of people manages this type of entity privately without any Public interference.
- The Document in which the constitution of a private company is written is known as “Memorandum of Association (MOA) and Articles of Association (AOA).
- To form a private limited company the requirement of minimum 2 Directors and 2 Shareholders/Subscribers.
- The private limited company having a maximum of 200 shareholders as per companies act 2013.
- The private limited company issued its share through private placements.
- As on date the incorporation of Private company is totally hassling free and Having a very low cost of Incorporation.
- It’s not raised fund from the public through public issue or it cannot issue prospectus to the general public.
- It’s cannot be listed on the National Stock Exchange or can’t sell its shares to the general public through Stock Exchange Platform.
LIMITED LIABILITY PARTNERSHIP
- It’s a form of business, which is governed by the Limited Liability Partnership Act, 2008.
- LLP having its own separate legal entity and its combination of company & Partnership Firm.
- The Document in which the constitution of LLP is written is known as “LLP Agreement”
- The LLP having a minimum of 2 partners and there is no limit on maximum partners.
- it’s can not raise fund from the general public through open offer or prospectus or public issue.
- The LLP is extended version or form of Partnership firm and having all features of partnership firm except Unlimited Liability, Separate Legal entity & sue or to be sue (LLP sue anyone or to be sue by someone to LLP not its Partners).
- The word “LLP” is mention at the end of the entity name. if it’s registered as LLP.
- LLP registration is less complex than registration of Partnership firm under the Partnership Act.
- In LLP one partner is not liable for the actions of other partners (Individual Protection), but in a Partnership firm, its happen (every partner is liable for the actions of other Partners).
OPC (ONE PERSON COMPANY)
- This form of business is governed by section 2 (62) of companies act, 2013.
- OPC is one person company in which he acts as a promoter, director and also member/shareholder of the company.
- its is extended version or form of sole proprietorship firm in which having the features of the private limited company.
- There is no paid-up capital in OPC.
- The OPC having is its own separate legal entity distinguished from its member.
- The OPC having one member and also have one nominee which is carried out business after deceased of its sole member.
- It’s cannot be listed on the National Stock Exchange or can’t sell its shares to the general public through Stock Exchange Platform.
- The cost of compliance is too low in this form of business because he doesn’t need to hold Annual General Meeting and much more exemption in Companies act, 2013.
- It’s not raised fund from the public through public issue or it cannot issue prospectus to the general public.
- OPC has minimum one Director and Maximum 15 directors.
- The perpetual succession is very low because if the nominee is denied to become a member of the company then it’s automatically dissolved.
PUBLIC LIMITED COMPANY
- The public limited company is governed by section 2 (37) of Companies act 2013 and relevant rules.
- The public limited company is used word “LIMITED” at the end of its name.
- It’s can be listed on the National Stock Exchange or can sell its shares to the general public through Stock Exchange Platform.
- It’s raised fund from the public through public issue or it can issue prospectus to the general public.
- The Public Limited Company have a minimum of 3 Director and Maximum 15 directors.
- The public limited company having no maximum limit of shareholders as per companies act 2013.
- To form a public limited company the requirement of minimum 3 Directors and 7 Shareholders/Subscribers.
- The public limited company issued its share through private placements as well as a public issue.