S No Detail Private Limited Company Public Limited Company
5 . |
Share subscription |
Cannot invite public to |
Can invite general public |
|
|
subscribe its shares |
to subscribe its shares |
|
|
or debentures |
|
6 . |
Transferability |
Right to transfer is restricted |
Freely transferable |
|
of shares |
by its Articles of Association |
|
7 . |
Quorum |
Minimum 2 members |
Minimum 5 members to |
|
|
be personally present . |
be personally present . |
|
|
In case of corporate |
In case of corporate |
|
|
shareholders , their |
shareholders , their |
|
|
nominated representatives |
nominated representatives |
8 . |
Statutory Meeting & |
No requirement to hold |
Mandatory |
|
Statutory Report |
statutory meeting or to |
|
|
|
circulate statutory report |
|
9 . Index of Members Not required Mandatory
10 . |
Rights Shares |
No requirement to offer |
Must offer first to the |
|
|
right shares to existing |
existing shareholders |
|
|
equity shareholders |
|
Figure 9
3.1.2 Wholly Owned Subsidiary
A foreign corporate can invest and start its operations in India by incorporating a WOS company under the provisions of the Indian Companies Act , 1956 . It is treated at par with a domestic company and all regulations applicable to an Indian company equally apply to the WOS .
The set-up can be under the automatic route 8 , wherein no prior approval of the government is required . One needs to take into consideration the business activities proposed for India as well as the sector of operation . In case restrictions apply , prior approval is required from the FIPB - Ministry of Finance .
3.1.3 Joint Ventures
There are no separate laws for Joint Ventures ( JV ) in India and laws governing domestic companies equally apply to JVs . Typically , as in any other country , a JV is where two parties ( individual or companies ) incorporate a company in India . The management and running the JV is influenced by the terms decided in the shareholders agreement .
8
Refer section 2.2.1.2
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