On the Basis of Incorporation: When the company is registered that process is called incorporation of the company

1)Chartered Company:
The companies formed by the charter or special permission by the kings are called chartered company. These companies function and regulate their activities according to the charter laid down. the glaring example of a chartered company is the East India Company which is formed by the special royal charter of the British crown.

  

Chartered granted by Crown For example East India Co. , Bank of England Business of the company is explained by Charter

2)Statutory Company:
Companies which are formed or incorporated by a special act of parliament, are known as statutory companies      Formed by Special Act or under Order of head of state For the utilities of public Purpose is to provide services and not to earn profit These companies do not have memorandum and articles For example SBP,ADBP, PR, PIA, WAPDA etc.

c. Registered Companies
Registered companies are those companies which are formed by registration under the Company Act.    y
y

Formed under Companies Ordinance ,1984 Formed under earlier previous Acts Most popular mode of incorporation Memorandum and Articles of Association Get powers from law

On the Basis of Liability: Defines the liability of members or company as a whole

1)Liability Limited By Shares

These are those companies in which the capital is divided into shares and liability of members (share holders) is limited to the face value of shares held by them. This is the most popular class of company. 2)Liability Limited By Guarantee These are such companies where shareholders promise to pay a fixed amount to meet the liabilities of the company in the case of liquidation.this amount is recorded in memorandum of association of the company at the time of its incorporation  Kinds: (a) Company Limited by Guarantee and having a share capital (b) Company Limited by Guarantee and not having share capital For example Karachi Stock Exchange (KSE), Lahore Stock Exchange (LSE) 3)Unlimited Company: (U/S 15)    Liability of the members in the company is unlimited Show purpose of the registration No existence in present

4)Association not for profit:    Purpose not to earn profit Under section 42 these companies are registerd Not add the words Ltd. or (Pvt.) Ltd. or Guarantee Ltd

Condition of the Association not for Profit: Promotion of useful object Profits applies their objects Not pay dividend Condition binding on association Condition includes in documents Licence is granted by Federal government Insert in MOA and AOA regulations of Federal government

On the Basis of Number of Members 1)   y y 2) Single Member Company: Single member is shareholder At least one director Also required to have one director Companies add SMC at the end of the name

Private Company
A company is said to be a private company which by its Memorandum of Association restricts the right of its members to transfer shares, limits the number of its members and does not invite the public to subscribe its shares or debentures.

    

At least 2 persons Not exceed 50 Articles of association restrict transfer of shares Shares are not offered to general public Companies add (Pvt.) Ltd at the end of the name

3) - Public Company
A company, which is not private, is known as public company. It needs minimum seven persons for its registration and maximum to the limit of its registered capital. There is no restriction on issue or transfer of its shares and this type of company can invite the public to purchase its shares and debentures       Public company means a company not a private company At least 3 persons Maximum unlimited shareholders Shares can be transferred from one person to other it means to general public Companies add the word Ltd. at the end of the name

On the Basis of Ownership: 1. Holding Company: A company which holds majority of shares of another company is called a holding company    Hold 50% shares of other company Control over the board of directors Advantages of holding company..............

2. Subsidiary Company: The company whose majority of shares are held by other company is called a subsidiary company   Other company hold 50% of its shares Other Company has control over the board of directors

3. Associated Company:   Not a subsidiary company but works in close connection It is also called associated undertaking

4. Foreign Company:  Incorporated outside the Pakistan and carries business in Pakistan