Corporate

law
 Kinds

of

companY
 GROUP MEMBERS ARE :-

Neelakshi Arora 2022281

Nidhi 2022282
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A company may be incorporated by either a
Special Act of the legislature or under the
Indian Companies Act, 2013.
Accordingly, a company may be:-
(1) Statutory Company, or
(2) (2) Registered Company.
A company formed by a Special Act passed either
by the Central or State Legislature is called a
Statutory Company.
Statutory companies are governed by the
provisions of their special Acts.
These companies are usually formed to carry out
some special public undertakings requiring
extraordinary powers and privileges.
 REGISTERED COMPANIES

Company registered under the Indian Companies Act is

known as Registered companies.
These companies are governed and Companies Act,
regulated by the provisions of the 2013.
These companies may be limited by shares or limited by
guarantee or unlimited companies
Kinds of registered companies
Registered
companies

Limited Unlimited
companies companies

Limited by Limited by With share Without

shares gurantee capital share capital
Kinds of Companies on the Basis of Liability of Members
(1) Companies Limited by Shares :- [Sec. 2(22)] defines "company limited by shares"
as a company having the liability of its members limited by the memorandum to the
amount, if any, unpaid on the shares respectively held by them. registered in India
belongs to this category.
(2) companies limited by gurantee :- companies limited by gurantee also called
gurantee company
 ONE PERSON COMPANY
As per section 2(62) of the Companies Act, 2013, one person company means a company
which has only one person as member.

Rule 3 of the Companies (Incorporation) Rules, 2014 states that only a natural person who
is an Indian citizen and resident in India shall be eligible to incorporate a One Person
Company and become a nominee for the sole member of a One Person Company .

∎ Salient Features
 One person cannot incorporate more than 1 OPC
 No minor shall become member or nominee of the OPC
 It must have only one member at any point of time and may have only one director.
 As per Rule 3(7) of the Companies (Incorporation) Rules, 2014,the size of the OPC is
restricted to the following:
• Maximum paid up share capital Rs.50 lakhs, or
• Average annual turnover in a financial year Rs.2 crore.
∎ Privileges Available
a) The main reason for shareholders to incorporate the ‘single-person company’
is certainly the desire for the limited liability.
b) Businesses presently run under the proprietorship model could get converted
into OPCs without any difficulty.
c) Mandatory rotation of auditor after expiry of maximum term is not
applicable.
d) One Person Company should have minimum of one director. Though, it can
have directors up to a limit of 15 which can also be increased by passing a
special resolution as in case of any other company.
e) One Person Company is exempt from holding of general meetings.
f) An OPC is not required to prepare statement of cash flows.
 SMALL COMPANY

The idea of Small Company has been introduced for the

first time by the Companies Act, 2013. The Act
recognizes some companies as small companies
depending upon their capital and turnover position for
the purpose of providing certain relief/exemptions to
these companies.
 According to Section 2(85), a Small Company is defined as – ‘‘Small Company’’ means a company, other
than a public company,—

(i) paid-up share capital of which does not exceed 50 lakh rupees and will not be more than 5 crore
rupees;
(ii) (ii) turnover of which as per its last profit & loss account does not exceed 2 crore rupees and will not
be more than 20 crore rupees

• Further provided that nothing in this Section will apply to—

• (A) a holding company or a subsidiary company;
• (B) a company registered under Section 8; or
• (C) a company or body corporate governed by any special Act