What do you understand by a Public Company?

A Public Company mans a company which
(a) has a minimum paid-up capital of Rs. 5 lakhs or a higher amount which may be prescribed from time-to-time; 
(b) has a minimum of 7 members and no limit on maximum members;

(c) has no restriction on transfer of shares; and 
(d) is not prohibited from inviting the public to subscribe to its share

capital or public deposits.

• A private company which is a subsidiary of a public company is also treated as a public company.