TYPES OF

COMPANIES.
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 COMPANIES

Incorporated

1)Chartered co. Liability

1) Lmt by guarantee
2)Statutory co. Ownership
2)Lmt. by shares
3)Registered co. 1)Private
3) Unlimited
2) public Mutual
relationship
3) government Nationality
1)Holding co.
2) Subsidiary co. 1) domestic

2) foreign
 General Information.
• Chartered companies:
EX,,, East India companies, bank of England, chartered bank of Australia.
These companies comes into existence when a special character is granted by the king
or queen or the head of the country.
• Statutory companies:
EX,,, RBI(reserve bank of India)
LIC(life insurance corporation)
UTI(union trust if India)
These companies are established by passing special acts at the parliament or
assembly.
• Registered companies:
EX,,,Indian aluminium, RIL, Hindustan aeronautical lmt.
These companies are registered under the companies act 1956.suitable for any
business endeavors or private entrepreneurs.
• Companies limited by shares:
The share holders of such company enjoys limit to the liability of the company in the
event of winding up, till the extent of the unpaid value of shares. Else they do not
have to pay anything else.
• Companies limited by guarantee:
The members of the firm undertake to pay specified amount to the firm during the
even of winding up over and above the value of shares, this amount is specified in
the memorandum of association.
• Unlimited liability:
The liabilities of the members towards the debts is unlimited. If they are not able to
pay the amount then they may have to bring the amount from their personal
estate.
• Private company:
This company must be formed minimum by 2 members, and
a) Restricts the members till 50.
b) Does not issue shares.
c) Min capital requirement is 1,00,000.
d) Restricts transfer of shares.

• Public company.
A company which is not a private company, i.e. there is no limit to the members, min
capital requirements is 5,00,000. allows transferability of shares and debentures,
issues shares.
• Government companies.
Section 617 of co. act defines, a government company as one which holds not less that
51% of paid up share capital of other company. Held by central or state
government or partly by both central and state government.
 • Holding company:
A company controlling subsidiary company, it is the one which holds not less that 51%
of the paid up share capital of another company and which controls the
composition of the board of directors of another firm.
• Subsidiary company:
Simply, a company which is under the control of the holding company is called
subsidiary company.

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