Hello friends,

I have a special query regarding the business regulation that coverns various types o business.

I know of two types of companies - private companies and public companies.
A private company is financed by its directors and can have a limited number of shareholders. And a public company is one where public can buy the shares of the company.

Now, what if a company takes money from people and helps them setup a business following their instructions. Is it a legal case? Is their any restriction to the number of people who can fund such ventures?

Will the third company be called a Promoter? What are the roles of a Corporate promoter? And the company that is formed, will it be a public or private one???? How can the shareholders rights be governed?

Regards

Ratnadeep