Company Registration in Tirupur
Public company [Section 3(1)(4) of the companies Act 1956]
A public company means a company which is not a private company and which has a minimum paid-up capital of five lakhs rupees or more as may be prescribed and any private company which was a subsidiary of another company which is not a private company .
After the commencement of the Companies (Amendment)Act,2000,a company could not be registered as a public company unless it has a minimum paid -up capital of five lakhs rupees.The effect is that the promoters had to subscribe for shares at least up to the required minimum through subscription clause of the memorandum of association at the time of incorporation as the public company (clause (4)(b) section 3 of the 1956 Act).
A public company which was enable to raise its paid-up capital to the required level within the period of two years,was free to convert itself into a private company subject,of course,to the fulfillment of the provisions of the clause (3) of sub-section (1) of section 3 and in accordance with the statutory requirements of the 1956 Act.