"Typically, startups have more than one founder. They also aim at equity infusion from angel investors and VCs. Esops are also granted to employees who ultimately hold a stake in the startup. This makes a private company form more suitable. Moreover, a minimum share capital of Rs 1 lakh is no longer required for incorporation, adding to their popularity."
Harish H V
Partner, Grant Thornton India LLP
This article apeared in Times of india on 13th May, 2016