What Are The Different Types Of Compinies

The Companies Act, 2013 (2013 Act) classifies agencies on the premise of range of shareholders, controlling interest, form of liability, purpose, marketplace access, length and capability among others. New standards of one-individual organization, partner organization, small organization and dormant organization were introduced.

Types of Companies Based on the Classification Criteria

 

Classification Criteria			Types of Companies
Number of Shareholders			Private Company                                Public Company                               One Person Company
Controlling Interest			Associate Company                             Holding Company                             Subsidiary Company                             Foreign Company                             Government Company
Types of Companies			Limited by Shares                             Limited by Guarantee                             Unlimited Company
Purpose			Non-profit Company                           Nidhi Company
Market Access			Listed Company                         Unlisted Company
Size and functionality			Small Company                           Dormant Company

Section 2(68)  Private Company 

The maximum famous shape of enterprise in India is non-public enterprise. The authorities is empowered to prescribe minimal paid-up percentage capital as non-public enterprise need to have. Initially, while s 2(68) of the 2013 Act became enforced with impact from 1 April, 2014, the non-public organizations, with the aid of using definition, had been required to have minimal paid-up percentage capital of Rs 1 lakh however this requirement became ignored with the aid of using now the enterprise can begin with most effective Rs a thousand paid up percentage capital too. Paid-up percentage capital approach the combination quantity of obtained as paid-up in recognize of stocks issued with the aid of using the enterprise. A non-public enterprise is shaped with following regulations in its Articles of Association: ·Shares are transferable with some Restriction on switch of stocks regulations together with to whom it is able to be transferred, proper of pre-emption with the aid of using present shareholders to collect stocks, dedication of rate at which they may be transferred among others. · Restriction on most range of shareholders enterprise can not have greater than two hundred participants. One-character enterprise, being a non-public enterprise with most effective one character as its member, can not have two hundred participants.

If the range of participants of a enterprise is decreased under the statutory minimal, that is, under in case of a non-public enterprise and 7 in case of a public enterprise and the enterprise consists of on commercial enterprise for greater than 6 months even as the range of participants is decreased under statutory minimal, anybody who's a member of the enterprise at some stage in the time that it so consists of on commercial enterprise after the ones 6 months and is cognizant of the truth that it's miles wearing on commercial enterprise with much less than seven participants or participants, because the case can be, is severally chargeable for the fee of the complete money owed of the enterprise gotten smaller at some stage in that time, and can be severally sued therefore Restriction on public offering: -

• No non-public enterprise can provide its securities to public for subscription. It is needed to include this prohibition in its Articles of Association
  

• Not most effective it's miles prohibited to ask subscription of its stocks from the general public however this prohibition extends to debentures, bonds and different securities.

• No restrict at the switch of stocks, opposite to the articles of association, may be imposed at the shareholders the enterprise itself. Conversely, the restrict, imposed with the aid of using thearticles of association, can not be violated.

• Only one pre-emptive provide is to be made that is in any other case to be accept in addition pre-emptive rights in recognize of these widely wide-spread or now no longer in any respect. The present shareholders aren't entitled to unaccepted stocks. Even one of these proper may be waived or changed A pre-emptive proper is granted in favour of a member of a non-public enterprise in order that his proper of manipulate isn't taken away. Exercise of such pre-emptive rights is mainly wanted with regards to the ones non-public organizations which can be basically integrated partnerships.
  

Section 2(71) Of Private Company A enterprise apart from a non-public enterprise is a public enterprise. It does now no longer have any regulations as withinside the case of a non-public enterprise. The Central Government has the strength to prescribe minimal paid-up percentage capital that a public companyshould have in any respect times. Initially, while s 2(71) of the 2013 Act became enforced with impact from 1 April, 2014, the general public organizations, with the aid of using definition, had been required to have minimal paid-up percentage capital of Rs five lakh however this requirement became ignored with the aid of using an modification in 2015. After the modification, the Central Government has retained the strength to prescribe minimal paid-up percentage capital however has now no longer prescribed it. Paid-up percentage capital approach the combination amount of cash credited and obtained as paid-up in recognize of stocks issued with the aid of using the enterprise [s 2(64)]. There is a deeming fiction with the aid of using which a subsidiary enterprise of a public enterprise is deemed as a public enterprise [s 2(87)]. This approach that each one the provisions of the 2013 Act, as relevant to public organizations, are relevant to a subsidiary enterprise of a public enterprise. Such a enterprise will now no longer be capable of experience privileges and exemptions as to be had to non-public organizations beneathneath the 2013 Act, aleven though it is still a non-public enterprise with the aid of using its articles [Proviso to s 2(71)]. Section 2(62) Of One-character Company One-character enterprise, because the call suggests, has most effective one character as a member. It is a brand new shape of enterprise delivered with the aid of using the 2013 Act. It is a non-public enterprise. Being a non-public enterprise, all regulations of a non-public enterprise will be contained withinside the Articles of a one- character enterprise.