Types of Companies

(I) On the basis of Incorporation:

(i) Statutory Companies
(ii) Registered Companies

(II) On the basis of Liability:

(i) Limited liability companies
- limited by share

- limited by guarantee
(ii) Unlimilited liability companies
(III) On the basis of Number of members:
(i) Public Companies
(ii) Private Companies

(IV) On the basis of Ownership:

(i) Government companies
(ii) Non-government companies

(V) On the basis of Control:

(i) Holding company

(ii) Subsidiary company

(VI) Others:
1. Foreign company
2. Associate companies

3. One person company

4. Small company
5. Dormant company
 Private Company
“private company”
means a company having a minimum paid-up share
capital of one lakh rupees or such higher paid-up
share capital as may be prescribed,
and which by its articles,—
(i) restricts the right to transfer its shares;
(ii) except in case of One Person Company, limits the
number of its members to two hundred:
(iii) prohibits any invitation to the public to
subscribe for any securities of the company;
Features:
1. Must necessarily have its own Articles of
Association.
2. Should have at least two directors.
3. The word 'Private Limited' must be added
at the end of its name.
Conversion of a private company into a
public company ???
 Public Company
“public company”
means a company which—
(a) is not a private company;
(b) has a minimum paid-up share capital of five lakh
rupees or such higher paid-up capital,
as may be prescribed:
Provided that a company which is a subsidiary of a company, not
being a private company, shall be deemed to be public company
for the purposes of this Act even where such subsidiary company
continues to be a private company in its articles ;
Conversion of a public company into a private
company ???
 Holding & Subsidiary Company

Holding company:
“ a company is known as holding company of another
company if it has control over that other company

Subsidiary company:
A company is deemed to be a subsidiary of another
company in the following 3 cases-
(i) company controlling composition of BoD
(ii) Holding of majority shares
(iii) subsidiary of another subsidiary
 Government Company
“Government company” means any company in which
not less than 51% of the paid-up share capital is held
(i) by the Central Government, or by any
(ii) State Government or Governments, or
(iii) partly by the Central Government and partly by one
or more State Governments,
and includes a company which is a subsidiary
company of such a Government company.
 Foreign Company
Any company incorporated outside India which has an
established place of business in India or through an
agent physically or electronic mode.
 Associate company
 A company is considered to be an associate company of
the other, if the other company has significant influence
over such company (not being a subsidiary) or is a joint
venture company.
Significant influence means control of at least 20 %of total
share capital of a company or of business decisions
under an agreement
 One person company (OPC)
NOTE : A single person is entitled to incorporate maximum of 5 OPCs

A company
in which one man holds practically the whole of
the share capital of the company.
Features:
1. Dummy members are usually nominees
2. Can only be incorporated as a private limited company
3. Can have only one member
4. May have only 1 director though more are allowed
5. Words One person company to be added with the company’s
name
6. AGM not mandatory but if directors are more than 1, it should
be held
 Small company
‘‘Small company’’ means a company, other than a
public company, -
(i) paid-up share capital of which does not exceed 50
lakh rupees or such higher amount as may be prescribed
which shall not be more than 5 crore rupees; or
(ii) turnover of which as per its last profit and loss
account does not exceed 2 crore rupees or such higher
amount as may be prescribed which shall not be more than
20 crore rupees:
Provided that it shall not apply to:
(a) holding/subsidiary co.
(b) A company regd. Under Sec 8 (associations not for
profit)
(c) A co. governed by any special act
 Dormant Company

Companies which are

not carrying on any significant accounting
transaction for a period of 2 years can
apply to RoC for getting declared as
‘dormant’
OR
annual returns not filed for 2 financial years
consecutively
 Association Not for profit

Section 8 Company – Companies with Charitable

Objects
• A non-profit organisation can be registered as Trust
or as a Society or as a private limited non profit
company under Section 8 Company under
the Companies Act 2013.
• A Section 8 Company is the same as the popular
Section 25 company under the old Companies Act,
1956
• A Section 8 company can be established for
promotion of commerce, art, science, sports,
education, research, social welfare, religion, charity,
protection of environment etc.
• Section 8 company may be limited or private
limited both .

• One Person Company cannot be a Sec 8 Company

• The requirement of having minimum paid up

share capital shall not apply .

• A company registered u/s 8 may have any number

of Directors
 Public vs. Private company
Public company
1. Minimum capital : 5 lakhs
2. Minimum members : 7
3. Maximum number of
members : no restriction
4. Number of Directors :
3 (Min.) and 15 (Max.)
5. Restriction on appointment
of directors : Registrar’s
consent reqd.
Private company
1. Minimum capital : 1 lakh
2. Minimum members : 2
3. Maximum number of
members : 200
4. Number of Directors : 2
(Min.) and 15 (Max.)
OPC : 1
5. Restriction on appointment
of directors : Registrar’s
consent not reqd.
 NOTE : Number of directors can exceed 15 by passing a
special resolution but with atleast 1 woman director

Public company Private company

6. No restriction on invitation to 6. Restriction on invitation to
subscribe for shares subscribe for shares
7. Transferability of 7. Transferability of
shares/debentures : Free shares/debentures :
restricted by Article
8. Quorum : 8. Quorum : 2
(i) 5, if the members are not
more than 1000
(ii) 15, if more than 1000 < 5000
(iii) 30, if exceeds 5000