WHAT ARE THE DIFFERENT TYPES OF COMPANIES?
There are different types of companies. A brief explanation on the various types of companies is given below:
ON THE BASIS OF INCORPORATION
1. Chartered Company: - A chartered company is a company, which is, establish under a special charter issued by the head of the state i.e. the king or queen. British East Indian Company is an example of such company. In India
2. Statutory Company: - A statutory company is formed under a special Act or statute passed by legislature [parliament] of the country. Such companies are subject to the provisions of special act. The R.B.I & U.T.I are some of examples.
ON THE BASIS OF LIABILITY
3. Company limited by Shares: - In this type of company, the liability of the members is limited to the extent of the unpaid value on shares.
4. Unlimited Company: - In this type of company, the liability of the members is unlimited. They are not found in India
On the basis of ownership
5. Government Company: -It is that type of company in which not less than 51% of the paid up capital is contributed by the government i.e. central and/or state government[s].
6. Non-Government Company: -Such companies are owned by private parties and government is not involved. Most of the joint stock companies in India
ON THE BASIS OF NUMBER OF MEMBERS
7. Public Limited Company: -A companies which are owned, managed and controlled by government on behalf of people are known as public limited company. A public limited company must have minimum 7 members and maximum number of member is unlimited. After getting certificate of incorporation and trading certificate. It must hold statutory meeting.
8. Private Limited Company: - A companies, which are owned, managed and controlled by private organizations, are called private limited company. A private limited company must have minimum 2 members and maximum number of member is 50. It can start its business after getting certificate of incorporation. It need not have to hold statutory meeting.
ON THE BASIS OF CONTROL
9. Holding Company: - A holding company controls some other company by holding a majority of shares or by controlling the composition of the board of that company.
10. Subsidiary Company: - It is that company which is controlled by another company i.e. by the holding company.