Discuss various types of companies.
Answers
✔️HERE'S YOUR ANSWER ✔️
Companies can be classified into different types based on their mode of incorporation, the liability of the members, and number of the members. The most common types of companies are:
Royal Chartered Companies
Statutory Companies
Registered or Incorporated Companies
Companies Limited By Shares
Companies Limited By Guarantee
Unlimited Companies
Public Company (or Public Limited Company)
Private Company (or Private Limited Company)
One Person Company
types of companiesTypes of Companies | The Startup Process
By
Sourobh Das
August 28, 2017
4.3 out of 5 (52 Votes)
So now that you have done all your homework, all the stakeholders are on board and you have the perfect business model in place, it is time to move to the step all entrepreneurs wait for the most i.e. setting up and registering the company. It is your vision coming to life and existing for posterity, long after you are gone. But before we move on to the guide on how to register your company/business, let us first discuss the different types of companies your startup can be registered as.
Different Types of Companies
Companies can be classified into different types based on their mode of incorporation, the liability of the members, and number of the members. The most common types of companies are:
Royal Chartered Companies
Statutory Companies
Registered or Incorporated Companies
Companies Limited By Shares
Companies Limited By Guarantee
Unlimited Companies
Public Company (or Public Limited Company)
Private Company (or Private Limited Company)
One Person Company
Types Of Companies Based On The Mode of Incorporation
Companies can be classified into three types based on whether they are created by a special act, special order, or are registered just like any normal company.
Royal Chartered Companies
Royal Chartered Companies are companies created by the Royal Charter. This means they are granted power or a right by the monarch or by a special order of a king or a queen. Examples of Royal Chartered Companies are East India Company, BBC, Bank Of England, etc.
Statutory Companies
Statutory Companies are companies incorporated by means of a special act passed by the central or state legislature. They are mostly invested with compulsory powers and are responsible to carry out some special business of national importance. Some examples of statutory companies are The Reserve Bank of India (formed under RBI act, 1934), Life Insurance Corporation of India (formed under LIC Act, 1956).
Registered Or Incorporated Companies
All the other companies which are incorporated under the companies act passed by the government comes under this head. These companies come under existence only after they register themselves under the act and the certificate of incorporation is passed by the Registrar of companies. Google India Pvt Ltd is an example of incorporated companies.
Types Of Companies Based On The Number Of Members
Public Limited Company
The legal existence of a Public Limited Company is separate from its members (shareholders) and the liability of its members is also limited. Its existence is thus not affected by the retirement or death of its shareholders. A minimum of 7 members is needed to form a Public Limited company but there is no maximum limit on this. The company collects its capital by the sale of its shares to the shareholders. The shareholders of a company do not have the right to participate in the day-to-day management of the company, thus separating ownership from management. All the major decisions of the company are taken by the Board of Directors.
Private Limited Company
Private Limited (Pvt Ltd) companies have more than 2 and less than 50 members and their liability is limited or unlimited depending on the type of the company it is. Unlike Public Limited companies, here the transfer of shares is limited to its members and the general public cannot subscribe to its shares and debentures.
HOPE THIS HELP YOU ❤️
PLEASE MARK THIS AS BRAINLIEST ❤️
Company refers to a group of people working together to achieve something like, developing a software as a team, running hotels etc. Legally a company needs to be registered as private limited or partnership firm.
Types Of Companies
Based On The Number Of Members
- Public Limited Company
- Private Limited Company
- ONE Person Company
Based On The Liability Of The Members
- Companies Limited By Shares
- Companies Limited By Guarantee
- Unlimited Company
Based On The Mode of Incorporation
- Chartered Companies
- Registered Companies
- Unregistered Company
- Limited Liability Company (LLC)
- Business Corporation
- Government Company