Public Company

Public Company means a company which
- is not a private company.
- has a minimum paid up capital of five lakh rupees or higher paid up capital.

A public company may be said to be an association consisting of seven or higher number of members which is registered under the Companies Act, 1956. The articles of a public company do not contain provisions restricting the number of its members or excluding generally the offer or transfer of shares or debentures to the public. Any member of the public who is willing to pay the price may acquire shares in or debentures of a public company. Shares and Debentures of public companies are capable of being dealt on a stock exchange. Unlike a private company, there is no restriction with regards to the maximum number of members of a public company.

There are provisions in the Companies Act, 1956 for a Private company to become Public in certain cases. This would need to be informed to the Registrar who would substitute the word "Public Company" for the word "Private Company" in the register and shall also make necessary alterations in the Memorandum of Association (MOA) and Certificate of Incorporation within four weeks from the date of application made by  the company.

To register a Public Limited company, visit Companies Inn at http://companiesinn.com

Private Company

A private company means a company which has a minimum paid up capital of one lakh rupees or such higher paid up capital and by its articles:
(a) restricts the right to transfer its shares.
(b) prohibits any invitation to the public to subscribe for any shares or debentures.
(c) prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives.

There should be at least two persons to form a private company. A private company can therefore be registered with a minimum 2 members and cannot have more than 50 members. The words "Private Limited" must be added at the end of its name by a private limited company. It can be shortly added as "Pvt Ltd".

To register a Private Limited company, visit Companies Inn at http://companiesinn.com

An Unlimited company

An unlimited company is a company not having any limit on the liability of its members. Thus the maximum liability of the members of such a company, in events of its bring wound up, might stretch upto the full extent of their properties to meet the obligations of the company by contributing to its assets.

A company is registered as an unlimited company may subsequently convert itself as a limited company, subject to the condition that any debts, liabilities, obligations or contracts incurred are entered into by or on behalf of the unlimited company before such conversion are not affected by such changed registration.

Read about Limited Liability Company.

Company Secretary Services

The secretary of a company is empowered to perform the following:


(i) All acts which he is required to perform under enactments like the Companies Act, the Income Tax Act etc.
(ii) All acts which the Board of directors specifically direct him to perform.
(iii) All acts which are essential to enable him to discharge his duties smoothly as the administrative head in his department. 

Mentioned below is the contractual and statutory duties of a secretary:

(A) Contractual Duties:

1. A company secretary is expected to perform his duties with reasonable care and skill.

2. He must abstain from disclosing any confidential or secret information relating to the affairs of the company which comes to his notice during his employment and should not make any secret profits of his position as a secretary of the company.

(B) Statutory Duties

(1) Under the Companies Act

i. To sign any document or proceedings requiring authentication by the company.

ii. To deliver the share or debenture certificate to shareholders within 3 months of allotment or within 2 months of registration of transfer.

iii. To make entries in the register of members on issue of share warrants.

iv. To deliver for registration particulars of mortgages and charges to the Registrar.

v. To get painted or get affixed the name plate of the company outside every office or the place of its business, to get it printed on documents of the company and to get it engraved on the seal of the company.

vi. To make a statutory declaration for obtaining the certificate of commencement of business.

vii. To sign the annual return.

viii. To allow inspection of and to furnish copies of register of members and register of debenture holders.

ix. To send notices of general meetings to every member of the company.

x. To file resolutions and agreements requiring registration with the Registrar.

xi. To prepare and record minutes of every general meeting and of every meeting of Board of directors or of every committee of the Board within 30 days of the conclusion of every such meeting.

xii. To sign the annual balance sheet of the company.

xiii. To send notices of the meetings of directors.

xiv. To make available register of directors for inspection.

xv. To maintain the following statutory books:

- Register of investments held by company in the name of its nominee.

- Register of charges.

- Register of members.

- Register of contracts in which directors are interested.

- Register of Directors, Managers and Secretary.

- Register of Director’s shareholdings.

(2) Under the Income Tax Act

i. To ensure that proper income tax is deducted at source from the salaries paid to the employees, or interest paid/payable to holders or depositors.

ii. To see that a certificate of income tax deducted at source is furnished to every holder or depositor.

iii. To ensure that the tax so deducted has been deposited in Government treasury.

iv. To verify and submit miscellaneous statements, forms and returns.

(3) Under the Indian Stamp Act

It is the duty of the secretary to see that the documents like letter of allotment, share certificates, transfer forms etc are properly stamped as per the requirements of the Indian Stamp Act.

(4) Under Other Acts

In addition to the above, the secretary is also required to perform the various duties specified under various other Acts.

Reference: The Company Secretary law book.

Written by: Sonia from CompaniesInn.com (Leading company formation and LLP registration services in India)