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:
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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 , such types of companies do not exist.
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.
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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 due to risk involved at the time of winding up.
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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 belong to this category.
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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.
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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.