Company Incoporation Types

One Person Company

These Companies have only one member and a nominee (to act as a member when the sole member is becomes incompetent to act); it is a mandate that an OPC at all times should have a nominee. It is essential that both the persons must be individuals and Indian citizen (body corporate can neither become a member nor a nominee). Moreover, both the member and the nominee must have stayed in India for a period of atleast 182 days in the immediately preceding one calendar year. In terms of legal and procedural compliances an OPC is exactly similar to a private company except that a private company needs to have minimum two members and two directors while OPC needs to have minimum one director but maximum one member.

Private Limited Company

These companies have minimum 2 members and 2 directors with a mandate to use word “private limited” at the end.

It is essential for Private Limited Company to mention following points in its articles:

• Restriction of right to Transfer Shares;

• Maximum Limit of Number of its Members is 200; and

• Prohibition of any Invitation to the Public to Subscribe for any securities of the Company;

Private Limited Company can be divided into 2 categories:

• Small Company : It means a private limited company having paid up share capital upto 50 lakhs and turnover upto 2 crores .

• Other than small company : It is also known as big private company. It includes a private limited company having paid up share capital of more than 50 lakhs and turnover of more than 2 crores.

Public Limited Company

It includes all company’s other than private limited company with a mandatory use of word “limited” at its end. These types companies have a special privilege that subject to certain compliances they are at freedom to raise money from public.