Author name: KnowGro

The Companies Act, 2013, introduced significant changes in the corporate landscape in India. Among its many provisions, it classifies companies into two primary categories: public companies and private companies. Understanding the differences between these two types of entities is crucial for entrepreneurs, investors, and business owners. In this article, we will delve into the distinctive features of public and private companies as defined by the Companies Act, 2013, and explore the implications for businesses operating under each structure.

Nidhi companies are incorporated with the object of cultivating the habit of thrift and savings amongst its members. Nidhi company receives deposits from, and lends to, its members only, for their mutual benefit. A Nidhi Company needs to comply with such rules as are prescribed by the Central Government for regulation of such class of companies.

While registering a company brings many benefits, it’s also important to consider the potential downsides. This article explores the disadvantages associated of registering a company and the factors entrepreneurs should weigh before making this significant decision.