Startups are the lifeblood of innovation; companies like FlipKart, OYO and PayTM have shown what can be achieved when one has a vision and the zeal to put their ideas out there in front of the world.
There are many other benefits attached to Public Company registration and they are as follows; Distinct Legal Entity This is similar to the Limited Liability companies in which the company is a legal object and a juristic person authorized under the Act.
It cannot acquire any other company by purchase of securities or control the configuration of the Board of Directors of any other company , it can only be done if the company has taken an approval of the Regional Director having jurisdiction over such a Nidhi Company.
According to the Companies Act, it is stated that the newly registered Companies,(within 18 months of incorporation should conduct an Annual General Meeting.