How to form Public Limited Company and Partnership firm?

A public limited company is a lot like private limited company except the minimum requirement of authorized capital Rs 5 Lakhs and some additional annual regulatory compliance while in operation. This form is preferred over the private limited companies because of a higher scope of expansion for a large-scale business and huge capital investment involved as well for the issue of IPO.

1. Features:
   1. It is formed with minimum 7 members and 3 directors
   2. Maximum number of directors is limited to 15
   3. There is a limit on a maximum number of members.
   4. Limited Liability protection to shareholders
   5. Better ability to raise equity funds
   6. Statues being a separate legal entity
   7. Perpetual Existence
   8. Unlike Private Limited Company, it can issue prospectus to the general public
   9. No prohibition to raise funds from public
2. The procedure of formation is similar to that of a private limited company.

What is a Partnership Firm?

A Partnership Firm is an easy structure of business owned jointly by two or more people. Not only is it easy to incorporate but the operations after the commencement are fairly simpler than a company.

1. Feature:
   1. The partners invest and gain profit according to the partnership deed drafted mutually.
   2. Each partner is an agent for the firm and the other partner.
   3. All the partners have unlimited liability i.e. they are personally liable for the debts of the firm.
   4. The ratio of investment and the profit sharing can be altered without any hassle.
   5. Though the ease of incorporation and working is that of a sole proprietorship, the presence of more than 1 person is always beneficial to the business. The skills and experience brought is enhanced and aids the business.
   6. It is not compulsory to register such a firm but is always preferred to be able to give a legal standing to the firm.
2. Registering a firm:
   1. Drafting a detailed and clear Partnership deed, mentioning details of the partners, their share, duties and responsibilities and dissolution
   2. A bank account in the name of the partnership firm
   3. Obtaining a PAN number