Apart from the difference from the compliance point of view, the basic difference between a Private Limited Company and a Public Limited Company are as follows:
|Public Company||Private Company|
Minimum Authorized Capital
Foreign Direct Investment in India in WOS or JVC is permitted under the following two routes:
Indian companies can issue shares under the automatic route up to 100% of their paid-up capital in those sectors wherein Foreign Direct Investment is permitted up to 100%.
In certain other sectors, foreign investment is limited to a prescribed percentage ceiling.
All other cases where the automatic route is not applicable require prior specific approval from the Foreign Investment Promotion Board (commonly referred to as FIPB).
Time Period- There is no particular time limit as to the duration of a Private/Public Limited Company. These entities shall carry on their business in India till the time they wound under the provisions of The Companies Act, 2013.
Permitted Activities-WOS/JVC can carry on the business activities as permitted by the Foreign Direct Investment policy of India.
Establishment of WOS/JVC in India
The following issues are to be decided up front by the parent Company: –
(Minimum 2 for Private Limited Company and 3 for Public Limited Company)
*One of the Proposed Directors should stay in India for at least 182 days during the financial year)
(Minimum 2 for Private Limited Company and 7 for Public Company)
(In-Principle Approval of appropriate authority/institute shall be required in case of certain objects)
(Name of the Indian City/State, where the Company proposes to establish its Registered Office once the company has been incorporated.)
Preparation of Documents: Basic documents required are
STEP-3 Filing of documents with the relevant Government authority and subsequent follow up.