kinds of companies

classification of companies
companies

incorporated un-incorporated

statutory registered

existing newly formed

limited limited unlimited

by shares by guarantee companies

Private Public Private Public Public Private

associations not for profit

one man company

prohibition of large partnerships

Various kind of company basis of
classification

classification on the basis of incorporation

classification on the basis liability

 classification on the basis number of member

classification on the basis of control

classification on the basis of ownership

basis of classification

classification on the basis of incorporation

statutory companies
oCompany created by special Act of
legislature
oConcerned with public utilities

registered companies
Companies formed and registered under
any of the company Act
classification on the basis liability

companies with limited liability

Company limited by guarantee
Companies limited by shares

companies with un limited liability

An unlimited company may or may not
have a share capital
classification on the basis number of
member

private company

Restricts the right to transfer its shares.

Prohibits any invitation to the public to

subscribe f
or shares.

Joint holders of shares are treated as a single

member.
public company

 Restrict the right to transfer its shares ,if

any
 limit the number of its members to 50
 Prohibit any invitation to the public to
subscribe for any shares in, or debentures,
of the company

distinction between public company and

private company

special privilege of private company

when does a private company became public company

conversion by default

where a default is made by a company in complying

with the essential requirements of private company.
conversion by operation of law (deemed public
company)

conversion by choice or volition

if a company so alters its articles that they do not

contain the provisions which make it a private company,
it shall cease to be a private company as on the date of
alteration.

conversion of private company into public company

classification on the basis of control

holding company

subsidiary company

 Company controlling composition of

board of directors..
 Holding of majority of shares..
 Subsidiary of another subsidiary
classification on the basis of ownership

government company

rules applicable to government

company Not less than 51% of the paid-
up share capital is held by central govt.
or state govt.

.Non-government company:

the company that is controlled and

operated by private capital.
foreign company

rules applicable to foreign company

Company incorporated outside India
which has established place of business in
India

one-man company

company (usually private) in which

one man holds practically the whole of
the share capital of the company
THANK YOU