Question 1

What is the minimum number of members required?

Accepted Answer

A Public Limited Company requires at least 7 shareholders and 3 directors.

Question 2

Can a Public Company raise funds from the public?

Accepted Answer

Yes, it can raise capital by issuing shares to the public.

Question 3

Is compliance higher than Private Limited Company?

Accepted Answer

Yes, it involves stricter regulatory and disclosure requirements.

Question 4

How long does registration take?

Accepted Answer

Typically 15–25 working days depending on approvals.

Question 5

Is it suitable for startups?

Accepted Answer

Generally, startups prefer Private Limited Companies unless planning large-scale funding.

Question 6

What is the minimum capital required for NBFC?

Accepted Answer

A minimum Net Owned Fund of ₹2 Crore is required.

Question 7

Is RBI approval mandatory?

Accepted Answer

Yes, NBFC registration requires approval from RBI.

Question 8

How long does NBFC registration take?

Accepted Answer

It typically takes 3–4 months depending on RBI processing.

Question 9

Can individuals apply for NBFC?

Accepted Answer

No, only companies can apply for NBFC registration.

Question 10

What activities can NBFC perform?

Accepted Answer

NBFCs can provide loans, asset financing, and investment services.

Question 11

Is partnership registration mandatory?

Accepted Answer

No, but it is recommended for legal benefits and dispute resolution.

Question 12

What is the minimum number of partners?

Accepted Answer

At least 2 partners are required to form a partnership firm.

Question 13

Is there any minimum capital requirement?

Accepted Answer

No, there is no minimum capital requirement.

Question 14

Can a partnership firm be converted into LLP?

Accepted Answer

Yes, it can be converted into an LLP or company later.

Question 15

Who should choose a partnership firm?

Accepted Answer

Small businesses, family businesses, and professionals working together.

Business Setup

Public Limited Company