In Single Member, only one director is required to incorporate a company while in case of private limited, at least two directors are required to form a company and in public limited, 3 directors are required to establish a public limited company.
Before making a company, first you need to understand the concept of capital. Capital is the investment through equity by the director to finance the assets of a company. Its not necessary to be the same amount of assets owned by the company. As the balance sheet equation depicts the two options for financing of assets.
Assets = Liabilities + Owner’s Equity
These accounting elements reflects the financial position of the company.
Assets = Ownership + Benefits
Liabilities = Payable by Company
Equity = Investment by the Directors of the Company