COMPANY  FORMATION:

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:

1. Public Limited Company
2. Private Limited Company

PUBLIC LIMITED COMPANY:

Conditions to be Public Limited are as follows:

1. Has a minimum paid up capital of Rs 5 Lakhs or such higher capital as may be prescribed;
2. To Convert from Private Companies :
3. 25% or more its paid up  share capital
4. Average Annual Turnover during the last 3 years exceeds Rs 25 Crores.
5. 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:

1. Has a minimum paid up capital of Rs 1 Lakhs or such higher capital as may be prescribed;
2. Limit the number of its member to 50.