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
20