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We can help you with a chart comparing the various company structures on different aspects. You may make an informed opinion after you read this chart.

A Company is a Private Company when: • the Articles restricts the right to transfer of shares; and • the Articles state that the maximum number of members that the Company can have is 200 Note: The public is not invited to subscribe for any securities of the Company. When many persons hold shares jointly, they are considered as a single member.

A company which is not a private company is a public company. It should have a minimum paid-up capital as may be prescribed. Note that even the subsidiary of a Public Company will be deemed a Public Company even if its Articles of Association state otherwise.

When only One Person is a member of a Company, it is an OPC. The Memorandum of Association of the Company must indicate a nominee who will become the member upon the death of the One Person or in cases where that One Person becomes incapable of entering into a Contract. The Nominee must give a prior written consent in a prescribed form when the Company is being incorporated. The Nominee can be changed.

Under 'Unlimited' liability, a partner’s liability extends to his personal assets. In a 'Limited' liability, the liability is only to the extent of respective partners’ investment in the partnership.

If you are forming the Company with charitable objects, this will be governed by S.8 of the new Act. This will be a limited Company. In such a type of Company, ensure that: • the object of the company is in promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment and other objects of this kind • the profits and other income of the company will be used to promote its objects • no dividend will be paid to its members First the Central Government has to give its approval in the form of a license. The Company can then be registered through an application to the RoC. Note, any alterations to the MoA and AoA require the Central Government approval.