Delhi Chief Minister Arvind Kejriwal and Tamil Nadu in-charge of the Aam Aadmi Party Somnath Bharti also attended the launch event of Kamal Haasan's political party.
"Makkal Needhi Maiam" can be roughly translated to "Centre for People's Justice."
Citing a Tamil proverb of 'Oru Soru,' which means a small example of a whole lot, Kamal Haasan said the launch was just the first step for 'makkal atchi,' (people's rule).
"You must be an example to the present day political system and I will be seeking your suggestion rather than giving you speeches," Kamal Haasan told the gathering.
His supporters waved banners sporting popular catch words from his movies like 'Nammavarey,' (Our man) and placards of 'Nalai Namathey," showing a smiling Haasan.
"The newly founded Makkal Needhi Maiam is your party. It’s here to stay, and to make the change we all aspire for. Guide us to serve you," Kamal Haasan tweeted after the launch.
He also unfurled his party's flag, which has six hands.
The flag in white background has six hands joining together with shades of red over three hands and rest with white along with a star in between surrounded by a star like background in black.
Colours black and white has a political significance in Tamil Nadu which forms part of the flags of the two big parties of the state-- AIADMK and DMK--and the shades are also seen as a pointer to the Dravidian ideology.
Earlier on Wednesday, Kamal Haasan began his political journey by visiting the house of former President A P J Abdul Kalam in Rameswaram. He took the blessings of Kalam's elder brother Mohammed Muthu Meera Lebbai Maraikayar, who is a centenarian.
The actor-turned-politician describing the former president as his "role model".
"Greatness can come from simple beginnings. Actually it will come only from simplicity. Glad to start my journey from a great man's simple abode," Kamal Haasan said in a tweet on his visit to Kalam's residence.
Kalam's family presented a memento carrying an image of the former president to Kamal Haasan.
Later speaking to the fishing community in Rameswaram, Kamal said that it is one of the most important industries in Tamil Nadu. He would be back to listen to the suggestions made by the fisherfolk.
Several flags in white with the Tamil Nadu map in black, sporting the tag line "Naalai Namadhe" meaning "Tomorrow is Ours" were seen flying in Rameswaram.