define company ? explain types of company ?
Answers
Answer:
Definition:
A company is that form of business organization, which is created by law. It refers to an association of persons, created to undertake business activities, having a separate legal existence, perpetual succession and a common seal.
A company is a body corporate or an incorporated business organization registered under the companies act It can be a limited or an unlimited company, private or a public company, company limited by guarantee or a company having a share capital, or a community interest company
Types Of Companies
A company can be classified into various types depending upon the following requirements:
Classification Of Companies By Mode Of Incorporation
Royal Chartered Companies
These companies are formed under a special charter by the monarch or by a special order of a king or a queen Few examples of royal chartered companies are BBC, East India Company, Bank Of England, etc
Statutory Companies
These companies are incorporated by a special act passed by the central or state legislature These companies are intended to carry out some business of national importance For example, The Reserve Bank of India was formed under RBI act 1934
Registered Or Incorporated Companies
These companies are formed/incorporated under the companies act passed by the government These companies come into existence only after these are registered under the act and the certificate of incorporation is passed by the Registrar of companies