Types of Companies

By:

(Assistant Professor)
Commerce & Management
Types of Companies
Acc to companies act 2013
OPC
OPC limited by guarantee & having a
share capital
OPC limited by guarantee having no share
capital
OPC Unlimited company having share
capital
OPC unlimited co having share capital
OPC unlimited company having no share
capital
Acc to companies act 1956
Public co limited by shares
Public company limited by guarantee &
having a share capital
Public company limited by guarantee &
having no share capital
Public unlimited company having a share
capital
Public unlimited company having no share
capital
Private company limited by shares
Private company limited by guarantee &
having a share capital
Private unlimited company and having a
share capital
Private unlimited company and having no
share capital
Incorporated Unincorporated
Chartered Co
Statutory Co
Registered Co
Co Limited by
shares
Co limited by
guarantee
Unlimited
limited co
OPC
companies
Publi
c
Pvt OPC Pvt
Publi
c
OPC
Publi
c
Pvt
Chartered Companies
In earlier times trading companies were often created by
a royal charter , but after it became possible to form
companies by registration, this happened only in rare
instance and these days charters are mainly issued to
non trading corp.
After the country attained independence these types of
companies do not exist in India.
The provisions of companies act 2013 do not apply to
such companies.
Statutory companies
A company may be incorporated by means of a special
act of the parliament or any state legislature.
such companies are generally formed to carry out some
special public undertaking. For e.g.: railway,
waterworks , gas , electric generation , reserve bank of
India, LIC, the food corporation of India etc
They are not required to have any memorandum or
articles of association.
The annual report on the working of each statutory co is
required to be placed on the table of parliament or the
state legislature as the case may be
Registered Companies
Such companies come into existence when they are
registered under the companies act and a certificate of
incorporation is granted to them by the registrar.
A co registered under companies cat may be:
A co limited by shares
A co limited by guarantee
An Unlimited company

Co Limited by shares
In this case the liability of the members is limited by the
memorandum to the amount, if any, unpaid on the shares
respectively held by them.
The liability can be forced during the existence of the co as well
as during winding up.
Where the shares are fully paid up no further liability rests on
them.
The co limited by shares may be either private or public
For e.g. if a person holds 500 shares of the value Rs. 10 & has
paid Rs. 5 per share with the application and allotment of shares,
his liability will be Rs. 2500 ,which can be called at any time.
Companies Limited by Guarantee
It may be public or private
The liability of the member is limited to such amount
as they may respectively undertake in the
memorandum to contribute to the assets of the
company in the event of being wound up.
A co limited by guarantee may or may not have a
share capital. If it has a share capital the liability of
the member is two folds
Liability to pay the share amount &
The amount guaranteed.
Unlimited Companies
A co not having any limit on the liability of its members
is termed as unlimited company.
In such a company the liability of each members extends
to the whole amount of the companies debts and
liabilities.
They may be public co or private companies.
Private Company
&
Public Company
Private company
Acc to sec 2(68) A company is a very suitable form for
carrying on the business of family or small concern as
the minimum numbers required is only two.
This section also provide that every company should
have a minimum paid up capital of 1 lakh rupees.
There are some restrictions on the transfer of shares in
case of private company
Conti.
There is also prohibition to invite to public to subscribe
for any shares or debentures of the company.
There is also prohibition to accept any invitation of
deposits from persons others than members , directors or
their relatives.
Maximum numbers in case of private company may
increased from 50 to 200 as per companies act 2013
Public company
Acc to sec 2(71) a public company means a company
Which is not a private company,
Has a minimum paid up capital of 5 lakh rupees or such
higher paid up capital as may be prescribed.
Is a private company which is a subsidiary of a public
company.
There must be at least 7 persons to form a public
company.

In case of public company the articles do not contain
provisions restricting the number of its members.
Public company
Min members:- 7
No limit on the maximum number
of members.
Must have a minimum paid up
capital of Rs. 5 lac
The name of the public co must
end with the word Limited.
May invite public to subscribe to
its shares by issuing its
prospectus.
No restriction on transfer of
shares
Can issue share warrants
Must have at least 3 directors.

Private company
Min members :- 2
Not more than 200 excluding past
and present employees.
Min paid up capital is1 lakh

Pvt.Ltd

Cant extend such invitation to
public
Restriction on transfer of shares

Can not issue share warrants
2 directors.

Public company
Further issue of shares must offer
them to the existing members
Must hold statutory meeting
Quorum is 5 members if do not
specified in the articles.
Director of a company shall file
with registrar consent to act as
such in case of appointment of
directors
Managerial remuneration cannot
exceed 11% of net profits in the
case of public company

Private company
Free to allot new issue to
outsiders.
Cannot hold such meeting
Quorum- 2 members

These restriction dont apply.



These restriction dont apply.