Types of companies
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What is the primary legislation governing the incorporation and regulation of companies in India?
The Companies Act, 2013 is the primary legislation governing the incorporation, regulation, and winding up of companies in India, replacing the earlier Companies Act, 1956.
What is the maximum number of members allowed in a private company under the Companies Act, 2013?
Maximum 200 members excluding employees.
How is a private company defined under the Companies Act, 2013?
A private company is one that restricts the right to transfer its shares, limits the number of its members to 200 (excluding employee-members), and prohibits any invitation to the public to subscribe to its securities.
What is the minimum paid-up share capital required for a private company under the Companies Act, 2013?
No minimum paid-up capital prescribed since 2015 amendment.
What is the minimum number of members required to form a public company under the Companies Act, 2013?
A public company requires a minimum of 7 members to be formed, and there is no upper limit on the maximum number of members.
What is the minimum number of directors required for a public company in India?
A public company requires minimum three directors.
What distinguishes a One Person Company (OPC) from other types of companies?
A One Person Company (OPC) is a company that has only one person as its member, allowing a sole proprietor to enjoy limited liability, a concept introduced for the first time under the Companies Act, 2013.
What is the minimum number of directors required for a private company under the Companies Act, 2013?
A private company requires minimum two directors.
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