“Private company” means a company having a minimum paid-up share capital as may be prescribed, and which by its articles,
- Restricts the right to transfer its shares;
- Except in case of One Person Company, limits the number of its members to two hundred:
Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member:
- Prohibits any invitation to the public to subscribe for any securities of the company.
“Public company” means a company which—
- Is not a private company;
- Has a minimum paid-up share capital as may be prescribed:
Provided that a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles.
REQUIREMENT OF minimum paid-up share capital is not applicable to Section 8 Company.
- One Person Company – S. 2(62) “One Person Company” means a company which has only one person as a member;
- Small Companies – S. 2 (86) “Small companies”means a company other than public company
- Paid-up capital is less than ₹50 lakhs or higher amount as may be prescribed which shall not be more than ₹5 crore; or
- Turnover of which is less than ₹2 crore as per its last profit & loss account or higher amount as may be prescribed which shall not be more than ₹20 crore;
Following companies shall not be small companies:
Holding company or a subsidiary company;
Company registered under section 8; or
Company or body corporate governed by any special Act.
