What is a Company?
A company may be described to mean a voluntary association of persons who have come together for carrying on some business and sharing the profits therefrom.
A company is a natural legal entity formed by the association and group of people. So that they can work together towards achieving a common objective. It can be a commercial or an industrial enterprise.
A company is a legal entity that people form. It allows them, usually as shareholders, to buy and sell goods and https://www.apartamentostronca.com/ services. In most cases, companies want to make a profit.
Classification of Company
(I) Classification of Companies on the basis of incorporation
a) Royal Charter Company
It is known as the company born out of the authorization of the sovereign or the crown. The crown grants a charter to the people requesting to form a cooperative or a company.
b) Statutory Company
The means of a special statute passed by the Parliament or the State Legislature forms this type of company. An example of statutory companies in India are the Reserve bank of India. https://www.sdk-dentalcollege.edu.in/
c) Registered Company
These are the companies which get registration under the statute of the Companies Act.
(II) Classification of Companies on the basis of liability of members
The liability upon the members uses to classify the companies, it describes the limit to which member will be liable if such liability were to befall upon the company. On the basis of liability of the members, the companies may be classified into:
- Companies limited by shares:
The liability of the members of such a company is based upon the number of shares kept unpaid.
https://musicinsidermagazine.com/scott-anderson-finger-eleven/- Companies limited by guarantee
In a Company where the liability is limited by guarantee, it means the member of the Company has agreed on the Memorandum of Association to repay the same amount during winding up of such Company.
- Unlimited Liability Company
These companies as defined under Section 2(92) of the Companies Act, 2013 do not have a cap on the amount of liability that may add on their members in case the company has to repay any debt.
(III) Classification of Company on the basis of the number of members
- Private Company
The private companies are very restrictive in nature. Wherein it may in its Articles of Association restrict the right to transfer shares. The number of members in such a company might be a maximum of 50.
- Public Company
As defined under Section 2(71) of the Companies Act, 2013, Public Companies are the ones which are not a private company. As mandated under Section 3(1)(a) of the Companies Act, 2013, there should be at least 7 members to form a public company.
(IV) Classification of Companies on the basis of domicile
- Foreign Company
A Company which is outside India, but has a registration place in India may be physical or electronic address or perhaps company has ownership itself or through the agents, representatives or managers of the company.
- Indian Company
Under Section 2(20) of the Companies Act, 2013 defines Indian company as any company which has its registration under the Companies Act, 2013, or any other previous law.
(V) Classification of companies on the basis of Miscellaneous factors
a) Government Company
As defined under Section 2(45) of the Companies Act, 2013, any company in which a minimum of 51 per cent of the paid-up share capital is held by the Central/State Government, and/or held fractionally by the Central Government and partly by one or more State Governments is known as a Government Company.
b) Holding, Subsidiary Companies and Associated Companies
Under Section 2(46) of the Companies Act, 2013, the holding company is a company of another company if it has administrative control over another company.
c) One person company
Under Section 2(62) of the Companies Act, One man company is a company in which one person is the whole and sole owner of the share capital of the company.
e) Associate company
These Companies as defined under Section 2(6) of the Companies Act, 2013 are the one in which the other company has significant influence but these Companies are not the subsidiaries of such influencing companies known as the Associate Company. The Joint Venture Companies are such associate companies.https://companyformationindia.com/classification-of-companies.html