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The differences for Private Limited Company and Public Limited Company are explained as under: · Definitions: Private Limited Company: As per the Companies Act 2013 "Private Company is a company which has a minimum paid-up capital of Rs 1 lakh Rupees and which is restricted to have the right to transfer the share. Public Limited Company:As per the Companies Act 2013" A public Company is a company which is not a private company and has a minimum paid up capital of Rs 5 lakh Rupees and have a right to transfer of shares of a company. · Number of members: There should be minimum 2 members to start a Private Limited Company and maximum ceiling of 200 members. In case of Public Limited Company minimum 7 members should be there and no ceiling on maximum number of members. · Number of Directors: There should be minimum 2 Directors in case of Private limited Company and minimum 3 directors in case of Public Limited Company. · Statutory meeting: A Private company has to hold a statutory meeting within 30 days of Company Incorporation and Public Company has to hold statutory meeting as well file the statutory report with ROC. · Transferability of shares: Articles of Association of restrict the transferability of share in case of Private Limited Company and In case of public limited company there are no such restrictions. · Share Subscription: A private company has no right to invite public for subscription. As opposed, a public company can invite the general public for subscribing shares of the company. · Managerial Remuneration: Total managerial remuneration in the case of a public company cannot exceed 11% of the net profits but in the case of inadequacy of profits a minimum of Rs 50,000 can be paid. These restrictions do not apply to a private company. Conclusion: It is clear from the above points that both the business structure has its own merits and demerits. Private Limited Company is basically suited for the start-ups with limited capital inv

There is no condition to start the business immediately after incorporation of Company; hence you can incorporate the company for future course of business as Private Limited Company or Public Limited Company. Further for this kind of situation there is a concept under section 455 of the Companies Act, 2013 called "Dormant Company". A dormant company is a company that has been registered under the Companies Act but is not carrying out any "significant accounting transaction." As per Companies Act 2013, a company that has been formed and registered under the Act, a) For a future project or to hold an asset or intellectual property and, b) Has no significant accounting transaction, is permitted to make an application to the Registrar to obtain the status of a dormant company. For being well compliant after incorporation Annual return of the Dormant Company in Form MSC-3 shall be filed within 30 days of the end of the financial year. Further the dormant companies can enjoy status as Dormant companies for maximum consecutive 5 years. You may visit us at http://www.legalwiz.in/private-l... for product details and get in touch with CA/CS for free consultation on 1800 313 4151 or through mail at support@legalwiz.in

The Companies Amendment Act, 2017 ("Amendment Act") was executed with the sole determination to resolve the challenges arising upon the implementation of the Companies Act 2013.. The primary basis for the Amendment Act 2013, is the report of the Company Law Committee(CLC). The Ministry of Corporate Affairs ("MCA") had established the Company Law Committee with the approval to: (a) Pass instructions on the challenges arising from the enactment of the Companies Act 2013. (b) Review the approvals received from the Bankruptcy Law Reforms Committee, the Law Commission of India, and other agencies, the High-Level Committee on Corporate Social Responsibility. In the beginning, The Ministry of Corporate Affairs (MCA) had disclosed 43 sections of the Amendment Act compatible to its notification dated 9 February, 2018. It also briefed 28 additional sections on 7 May, 2018. As a practice, the modifications released (dated 7 May, 2018) have provided improved transparency on the clarification of the various provisions of the Companies Act. Additionally, the MCA insists to ease the procedural requirements under the Companies Act, including the fines imposed in the event of failure to comply. Additional provisions notified. Modifications to the following main provisions were announced on the 7 May 2018:

All organisations of a particular industry may not necessarily be registered as a Company under Indian Companies Act, 2013. The private hospitals may be registered as Private or Public Companies or as Section 8 Company but not necessarily all. The test whether an entity is registered under Companies Act is its registered name and CIN (Corporate Identification Number). A Private Company must contain "Private Limited Company" at the end of its name and similarly a Public Company's name shall contain "Limited Company" or "Public Limited Company" at its end. The ambiguity may arise here if the entity, say hospital, is registered as Section 8 Company for charitable purpose. These companies are exempted to put "Private Limited" or "Limited" at the end of name. Thus, you may check if any company with same name is registered with Ministry of Corporate Affairs (MCA), the regulatory body. You may check the company details and CIN at following link: http://www.mca.gov.in/mcafoporta... Feel free to drop your query in comment box or drop an e-mail at support@legalwiz.in. Visit us at https://www.legalwiz.in

Section 2(87) of companies act, 2013 provides the definition of the Subsidiary as under: "Subsidiary Company" or "Subsidiary", in relation to any other company (that is to say the holding company), means a company in which the holding company- (i) Controls the composition of the Board of Directors; or (ii) Exercises or controls more than one-half of the total share capital either at its own or together with one or more of its subsidiary companies: Provided that such class or classes of holding companies as may be prescribed shall not have layers of subsidiaries beyond such numbers as may be prescribed. Thus , if LLP will hold more than 50% shares of the private Limited Company then the Private limited Company will be called as subsidiary of the LLP and there are no initial requirements which need to be followed from LLP's part.For incorporation of Private Limited Company, the same can be done by following standard procedure for incorporation of Private Limited Company. Learn more about process for Registering a Private Limited Company at http://www.legalwiz.in/blogs/com... Get assistance from Experts at LegalWiz.in for Registering a Private Limited Company at the nominal professional fees. Reach us at 1800 313 4151 or support@legalwiz.in

Acquisition of a company is dealt by Companies Act, 2013, where aspects of assets and shares valuation and more are dealt with. Dealing with the question here, the answer is yes, the company can be acquired by an individual. However, if it is the case where only one person will acquire the company, it will be mandatory to convert the company into One Person Company. Therefore, a process of conversion must be looked into. For the purpose conversion into OPC, the company shall not exceed the turnover limit of INR Fifty Lakh or the paid-up capital shall not be more than INR Two Crore. In other case, the company can be acquired by more than one person in form of Private or Public company. The process and disclosures prescribed under the Act must be followed. For acquisition of listed company, The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, known as Takeover Code must also be referred for disclosure and procedural requirements.

The Companies Act is the first and foremost part for every Company operating under the India's Boundaries. Or we can say Companies Act is the back bone for every Company it attracts on the Company from very first day even to incorporate the Company.

Following are the documents mentioned specifically under Companies Act, 2013 which needs to be maintained by a Private Limited Company: Books of accounts as per the provisions of Companies Act, 2013. Statutory Audit Report signed by Auditor To keep following records or register at the register office of the company: a. Shareholding Pattern in Form MBP-1 b. List of Director c. Related party interest d. Minutes of the meetings prepared in accordance with the provisions of the Act. e. A copy of MOA and AOA. Get further assistance from Experts at LegalWiz.in by contacting at 1800 313 4151 or drop us in an email for further query at support@legalwiz.in