Nowadays, entrepreneurs opted for the form of organisation and look at the scope of enter in corporate world. Different types of companies can be formed according to the requirement of the business and its activites.
In this article we are discussing about different types of company in India
Types of Companies based on Incorporation
- Chartered Company :- A Chartered Company is a association formed by investors or stakeholders for the purpose of trade exploration and colonization. Ex:- Bank of England (1694), East India Company (1600).
- Statutory Corporation :-Statutory Corporation are public enterprises brought into existence by a Special Act of the parliament. Ex:- Reserve Bank of India, the Life Insurance Corporation of India, the Food Corporation of India etc. The provision of the Companies Act, 2013 apply to statutory companies except where said provisions are inconsistent with the provisions of the Act created them. Statutory Companies are mostly invested with the compulsory powers.
- Registered Company:- A company which is formed or registered under Companies Act, Or any other previous company law is called as Registered or Incorporated Company.
Types of Company Based on Membership
- Public Company :- Public Company is defined under section 2(71) of Companies Act,2013. A public company is a corporation whose ownership is distributed amongst general public stakeholders via the free trade of shares of stock on exchanges or even the counter market.
Minimum Member – 7 & Maximum Member – Unlimited.
- Private Company :- Private company is defined under section 2(68) of Companies Act,2013. A company whose shares may not be offered to the public for sale and which operates under legal requirements less stricts than those for a public company
Minimum Member – 2 & Maximum Member – 200.
- One Person Company :- One Person Company is defined under section 2(62) of Companies Act, 2013. A OPC is a company that has only one person as to its member.
- Small Company :- Small Company is defined under section 2(85) of Companies Act,2013. A company which is a private company but having capital and turnover below specified Limit.
Types of Company based on Control
- Holding Company:- A holding company is defined under section 2(46) of Companies Act,2013.A form of corporate ownership structure of coglomorate. It involves a parent corporation or Limited partnership that own enough equity & voting rights in other company that it can control that company’s policies and oversee its money decision.
- Subsidary Company:- A Subsidiary Company is defined under section 2(87) of Companies Act, 2013. A company in which the holding company controls the composition of the Boards of Directors or exercise or controls more than ½ of the total voting power either at his own or together with one or more of its subsidiary company.
- Associate Company:- A Associate Company is defined under section 2(6) of Companies Act, 2013. A company in which is not a subsidiary company of the company having such influence.
Types of Company based on Liability
- Limited by Guarantee :- A company having the liability of its members limited by the memorandum to such amount as the members may respectively undertake to contribute to the assets of the company in the event of its being wound up.
- Limited by Shares:- A Company having the liability of its members Limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them.
- Unlimited Company:- A company not having a Limit of on the liability of its members.
Types of Company based on Ownership
- Government Company:- A government company is defined under section 2(45) of Companies Act, 2013. Any Company in which not less than 51% of the paid-up Share Capital is held by
- Central Government
- Any State Government or
- Partly by the central government & partly by the one or more state government.
- Foreign Company :- A Foreign company is defined under section 2(42) of Companies Act, 2013.
A Company or Body corporate outside India which is has a place of business of India whether by itself or through an agent, physically or through electronic made and conducts any business activity in India in any other manner.
Types of Company as per Object
- Non-profit/Charitable company:- Section 8 of the Companies Act, 2013 deals with the formation of companies which are formed to promote the charitable objects of commerce, art, science, sports, education, charity protection of environment ect. Such company intends to apply its profit in promoting its object & prohibiting the payment of any.
- Financial Company/Nidhi Company:- Company which has been incorporated as a nidhi company with the object of cultivating the habit of thrift and saving amongst its members, receiving deposit from and lending to, its members only. For their mutual benefits and complies with such rules as are prescribed by Central government of class of companies.
- Investment Company:- An investment company is a company is whose main purpose is holding securities for investment purposes. Investment Companies invest on behalf of their client who in terms share the profits and losses.
- Banking Company:- Banking company means the accepting for the ourpose of lending or investments of deposits of money from the public, repayable on demand or otherwise & withdraw by Cheaue, draft, net banking, wallets, order or otherwise.
- Insurance Company:- This types of company pools clients risks to make payments more affordable for the insured.