TYPES OF COMPANY
ON THE BASIS OF INCORPORATION:
- Statutory Companies – these are those companies that are constituted by a special Act of State Legislature or Parliament. The main motive of forming these companies to provide public services. This is governed under the Special Act, 2013 will be applicable to them except where the said provisions are inconsistent with the provisions of the Act.
Examples of these types are the Reserve Bank of India, Life Insurance Corporation of India, etc.
- Registered Companies – companies registered under, the Companies Act,2013 or any other previous Company Law are called registered companies.
ON THE BASIS OF LIABILITY:
- Companies limited by shares – in a company liability of its members are limited by the Memorandum to the amount. If any, unpaid on the shares respectively held by them is termed as a company limited by shares.
For example, a shareholder who has paid 70 on the share of the face value of 100 can be called upon to pay the balance of 30 only. The liability of shareholders is limited to the amount unpaid on the shares.
- Companies limited by guarantee – it is a company that has a liability of its members limited to such amount as the members may respectively undertake, by the memorandum. To contribute to the assets of the company in the events it's winding up.
Examples are clubs, trade associations, research associations, and societies for promoting various objects.
- Unlimited liability companies – a company that doesn’t impose on the liability of its members are called an unlimited company. The members are liable for the company’s debts in proportion to their respective interests in the company. And their liability is unlimited.
This type of company may or may not have share capital. They may be either a public or a private company.
ON THE BASIS OF NUMBER OF SHARES:
- Public company – it is formed by a minimum number of seven members with a lawful object. Its securities are listed on a recognized stock exchange, and its shares are freely transferable. There is no maximum limit of members in a company.
- Private Company – it is one in which two or more persons get their company registered under the Companies Act. Minimum two members are required. Maximum 200 members can be in a private company.
- One person company – it is a new category of a company. It is introduced to encourage startups and young entrepreneurs wherein a single person can corporate their entity. It also promotes the concept of the corporatization of the business.
ON THE BASIS OF DOMICILE
- Foreign Company – It means any company incorporated outside India. They have a place of business in India whether by themselves or through an agent, physically or electronic mode. It also conducts any business activity in India in any other manner. Section 379 to section 393 of the companies Act, 2013 prescribes the provisions which are applicable to such companies.
- Indian Company – a company incorporated in India and registered in India is known as an Indian company.
This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, White Code Legal and Tax shall not be responsible for any errors caused due to human error or otherwise.
