Types of Companies in India

What is a Private Limited Company?

• A Private Limited Company is a business entity that limits shareholder liability and is privately owned, not allowing public share sales.

• A Private Limited Company is a type of non-profit organization that distributes profits to shareholders.

• A Private Limited Company is a business structure that requires a minimum of 10 shareholders to operate.

• A Private Limited Company is a government-owned entity that allows public share sales.

What are the key features of a Public Limited Company?

• No regulatory compliance needed

• No minimum capital requirement

• Shares can only be sold privately

• Unlimited liability for shareholders

• Key features of a Public Limited Company include limited liability, ability to sell shares publicly, minimum share capital requirement, and regulatory compliance.

How many members are required to form a One Person Company?

• 5

• 1

• 2

• 3

What is the primary purpose of a Section 8 Company?

• To generate profits for shareholders.

• To provide government services and regulations.

• To operate as a for-profit business.

• To promote charitable objectives without profit motive.

Can a Foreign Company operate in India without registration?

• A foreign company can operate in India for up to 6 months without registration.

• No, a foreign company cannot operate in India without registration.

• Foreign companies only need to register if they have a physical office in India.

• Yes, a foreign company can operate in India without any restrictions.

What is the liability of members in a Limited Liability Partnership?

• Members are personally liable for all business obligations.

• Members have limited liability, protecting personal assets from LLP debts.

• Members have unlimited liability for LLP debts.

• Members' personal assets are fully at risk in an LLP.

What are the restrictions on the transfer of shares in a Private Limited Company?

• Shares in a Private Limited Company can only be transferred with board approval and may be subject to restrictions in the articles of association.

• Shares can only be transferred to family members without restrictions.

• All shareholders must agree to any transfer of shares.

• Shares can be freely transferred without any approval.

How does a Public Limited Company raise capital?

• By taking out a bank loan

• By selling real estate assets

• By receiving government grants

• By issuing shares to the public and through bonds.

What is the minimum paid-up capital required for a Public Limited Company?

• $25,000

• $100,000

• $50,000

• $10,000

What are the compliance requirements for a One Person Company?

• No need for statutory registers or board meetings

• Only quarterly tax returns are needed

• Annual compliance filings, maintenance of statutory registers, board meetings, appointment of auditor, income tax returns, and adherence to the Companies Act.

• No compliance required for small businesses