It is a newly introduced concept under the Companies Act, 2013, defined under sec 2 (62) as a private company with only one director and one shareholder. However an OPC can have maximum 15 directors.

Only a natural person having Indian Citizenship and residing in India can Incorporate OPC with a maximum paid up capital of Rs. 50 lakhs.


Section-8 companies are registered for charitable purposes.

A section-8 company can be incorporated by at least 2 persons, one of whom should be an Indian Citizen residing in India. Such companies are established for the “promotion of art, commerce, science, sports, education, research, social welfare, religion, charity, protection of the environment or any such other object.”

Sole object of a section-8 company is to apply all its profits and other income in promoting the objects for which it is incorporated and prohibits the payment of any dividend to its members alongside enjoy all privileges and of a limited company


These entities provide bank like financial services without holding a banking license. These entities are not allowed to take demand deposits or readily available funds from the public. NBFCs are not subject to banking regulations and oversight by federal and state authorities.

Investment Banks, Hedge Funds, Insurance Companies, Nidhi Companies are some examples of NBFCs.


These are Authorized money changers and are the only entities that can engage in money changing business as per section 10 of Foreign Exchange Management Act, 1999 (FEMA). These have to obtain a license from Reserve Bank of India (RBI) on fulfilling eligibility criteria of minimum net owned funds of Rs. 25 Lakhs to apply for single branch and Rs. 50 Lakhs for multiple branch license.

FFMCs scope of dealing with FOREX and money changing activities is for private and business travel purposes only.


According to sec 465 (1), producer companies are being governed by Part IX A of the Companies Act, 1956 until a Special Act is enacted for such companies.

Producer Company means a body corporate which has, as its objects or activities specified in section 581B of the Companies Act, 1956.

However, according to The Companies (Amendment) Bill, 2020 it is proposed that a new Chapter XXIA, Section 378A to 378U relating to Producer Companies on similar lines as in 1956 Act be introduced.


As the name suggests, to liaise is to communicate & cooperate in order to facilitate a close working relationship between people or organizations.

Also known as a representative office, a liaison office helps a foreign entity to explore and understand the business environment of another country. Liaison Office acts as a communication link between the principal place of business and entities in India with which it has to liaise.

Following activities cannot be undertaken by a liaison office:

  1. Commercial
  2. Trading
  3. Industrial


Basic requirement to be fulfilled to set up a liaison office in India: A person resident outside India should have a profit making track record during the immediately preceding 3 financial years and a net worth of at least USD 50,000 or its equivalent.

Letter of Comfort: If the above criteria is not fulfilled then a letter of comfort presented by the parent company will suffice the given criteria.


Out of the various modes available for a foreign company to enter Indian Market, opening up a Branch Office is also one of them. Branch Office can be set up without having to registered as a Company.

Basic requirement to be fulfilled to set up a liaison office in India: Parent company should have a profit making track record of 5 immediately preceding years and net worth of at least USD 1 lakh.