Companies can be classified on the basis of:
1. Incorporation
2. Liability of members
3. Number of members
4. Ownership
1. On the basis of Incorporation:
A. Chartered company
B. Statutory company
C. Registered company
A. Chartered Company
The company which have formed and incorporated under a special charter granted by the king or queen.
Eg East India company.
Bank of England.
B. Statutory Company
These are companies which are created by means of a special Act of Parliament or any state legislature.
Eg RBI, Railway
C. Registered Company
Company formed and registered under companies Act 1956 is called Registered companies.
2. On the basis of Liability of Members:
A. Limited company by shares
B. Company limited by guarantee
C. Unlimited company
A. Limited Company by Shares
Majority of registered companies will be company limited by shares. In case of limited companies liability of members will be limited to the amount unpaid on the shares.
B. Limited Company by Guarantee
Here liability of each member is limited by the memorandum to such amount as he may guarantee by the memorandum to contribute to the assets of the company in the event of its winding up.
Such companies are formed for the promotion of art science, culture, sports etc.
C. Unlimited Company
A company not having any limit on the liability of its members is termed as unlimited company.
The members are liable for the debts of the company at the time of winding up.
3. On the basis of Number of Members:
A. Private company
B. Public company
A. Private Company
A private company is a company
-which restricts the right to transfer its shares.
-limits the number of its members to 50.
-prohibits any invitation to public to subscribe its shares.
B. Public Company
A public company means a company which is not a private company.
4. On the basis of Ownership:
A. Government Company
B. Foreign company
C. Holding and subsidiary company
A. Government Company
A company is said to be government company when 51% of the paid up capital is held by the central government or by any state government or partly by central govt or partly by one or more state govt.
B. Foreign Company
A foreign company is a company incorporated outside India and having a place of business in India.
C. Holding and Subsidiary Company
A company which controls another company is known as the holding company and the so controlled company is known as subsidiary company.
One Man Company
This is a company in which one man holds practically the whole of the share capital of the company, and in order to meet the statutory requirement of minimum number of members some dummy members like his wife and son holds one or two shares each.
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