Types of companies

Note- Chartered company and statutory companies are always public companies.

Companies are classified from the perspective of the study facility. This classification has been added below:

● Based on liability:

1. Limited company.

2. Private company.

● Based on the Union:

1. Public company.

2. Private company.

● Based on reciprocity:

1. Holding company.

2.Auxiliary company.

● Based on others:

1. Government company.
2. Foreign company.
3. Special company.

There are mainly three types of incorporated companies –

(1) Companies made by Gazette-Ass companies are called Chartered Companies. This is the oldest type of companies when England’s business companies were amalgamated. It was characterized by these companies that their member companies were not responsible for the loans of the companies. The rights of these companies were very universal. For example, East India Company and Bank of England were such incorporated companies.

(3) Companies Act- The Company formed under such companies is called as registered companies. Now one day most companies are created in the same system.

E Companies are created under the Companies Act, although different acts are made for these companies, for example, for Banking Companies, Banking Regulation Act, 1949 etc.

(a) Companies registered in accordance with the liability of members:

(1) Unlimited Companies – According to section 21(2)(c) of the Indian Companies Act, companies in which the liabilities of the members are not limited are called unlimited companies. The number of unlimited companies these days is very low. The limited company’s share capital is not mandatory. If unlimited company members want, they can convert their company to accountable company, but for this they have to pass a special offer and this effect must submit the information to the company’s register.

There are time limits for the fulfillment of members’ liabilities. There are two types of limited companies –

(a) Share Ltd Company, and

(b) Guarantee Limited Company.

(a) Company limited by shares – This Company is the type of company liability in which the ratio of members is limited.

(b) Company limited by guarantee- It is characterized by such companies that the liability of the members of these companies is limited to the amount assessed in their limits which the company has accepted to pay on its liquidation.

(b) Companies formed in accordance with the organisation.

(1) Public Company- There is no complete explanation of the public company under the Indian Companies Act and as per section 3(1)(iv), the company which is not a private company is a public company. In other words, they are public companies which—

a.can invites the public to the sale of their shares or debentures,

B has seven minimum members.

c.can can freely transfer your shares.

(2) According to the Private Companies Act, private companies are companies that by them.
internal rules.

a. Members have to move to the limit of 50.

b. There is a ban on transfer of their shares.

c.do do not invite the public to purchase their shares and debentures.

(C) Companies formed on the basis of reciprocity:

(1) Assistant Company- In accordance with section 4(1) of the Indian Companies Act, a company shall be deemed subordinate to other company in the following circumstances –

A. That a company governs the establishment of the Board of Directors of the other company.

B. Another company which holds the right at more than 50% marked cost of that company’s ordinary share capital.

c. That it is subordinate to a company which is helping another company itself.

(2) According to the Holding Company Act, one company shall be considered as the formation of other company when this other company is providing assistance to it.

As a matter of fact, only company forming when one or more company is helping for a company that makes up the existence. Each holding has the following rights under Section 212 and the Company has the 214 Companies Act-

● With its annual report the status details of the auditor and the combiners of its helping company to present the report and details of the company’s interests providing assistance to that company.

● Naming representatives for the purpose of inspection of accounts of a company that helps.

● To submit application to the Central Government for the purpose of inspection for the assistance company’s investigation.

(D) Companies formed based on others:

(1) According to Section 617 of the Government Companies Act, the Company is called a Government Company in which a minimum 15% of the shares provided is held by the capital central or by the state government or jointly by both the Governments. Those companies that are helping government companies are called government companies.

(2) According to Section 591 of the Indian Companies Act, such companies which are involved in any other country other than India but are doing business in any place in India are called foreign companies. Therefore, it is mandatory for every foreign company working in India that it should write the name of the country in which it is amalgamated. This name should be mentioned in English, and local, in both languages. Apart from this, it should also be mentioned that the company is limited or unlimited. Each foreign company will submit complete information about the registrar duly mentioned with full details of the rights, location and true copy of the registered office. Each foreign company must also submit the names and addresses of individuals who can delivery the notice issued in India by that company. According to Section 234 (8) the Company Registrar has got the right to ask any foreign company working in its jurisdiction for the information or explanation required.

According to Section 594, each foreign company must submit the document registrar of the annual profitory annual balance sheet; it shall belong to the business of the company in India. According to Section 591(2) of the Companies (Amendment) Act, 1974, foreign companies which are foreign companies only for the name and in fact.