M.V.

P’S
K.T.H.M. COLLEGE
SY B.COM SEM-III
2021-22
ELEMENTS OF COMPANY LAW

TOPIC : TYPES OF COMPANY

PRESENTED BY : SHIRSATH SHRADDHA ASHOK
ROLL NO :482 1
GUIDE BY : PROF : NILESH MURKUTE
INTRODUCTION

A business is always owned by

someone. This can just be one person, or
thoughts. A business can have a number of
different types of ownership depending on
the aims and objectives of the owners. Most
businesses aim to make profit for their
owners. Profits may not be the major
objectives, but in order to survive a
business will need make a profit in the long
term. Some organizations however will be
not for profit, such as charities or
government run corporations. 2
 TYPES OF
COMPANIES

on the basis of On the basis of The other

On the basis of On the basis of
on the basis ownership companies
mode of control of liability of
formation of number of
management members
members

Government
One man
company Non
company Foreign company Producer
Statutory Registered company government
company company
company

Holding
Subsidiary
company
company
Public Private
company company

Companies with Companies

Companies
limited liabilities limited by
limited by shares
unlimited
company

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CLASSIFICATION OF COMPANIES
I. ON THE BASIS OF MODE OF FORMATION

1. STATUTORY COMPANY
COMPANIES WHICH ARE CREATED BY A SPECIAL LEGISLATION
OF PARLIAMENT OR STATE LEGISLATURE MAY BE CALLED
STATUTORY COMPANIES.
2. REGISTERED COMPANY
A REGISTERED COMPANY IS ESTABLISHED BY REGISTERING IT
WITH THE REGISTER OF COMPANIES UNDER THE COMPANIES
ACT,2013 OR UNDER ANY OF THE PREVIOUS COMPANIES ACTS.
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II. ON THE BASIS OF NUMBER OF
MEMBERS

1.PUBLIC COMPANY
“PUBLIC COMPANY” MEANS A COMPANY WHICH
A. IS NOT A PRIVATE COMPANY
B. HAS A MINIMUM PAID UP CAPITAL OF 5 LAKH RUPEES OR SUCH HIGHER PAID UP CAPITAL
AS MAY BE PRESCRIBED
C. PROVIDED THAT A COMPANY WHICH IS SUBSIDIARY OF A COMPANY.
2.PRIVATE COMPANY
IN CASE OF FAMILY BUSINESS OR SMALL SCALE ENTERPRISE IT IS MORE CONVENIENT TO
FORM A PRIVATE COMPANY BECAUSE ONE CAN FORM IT WITH THE MINIMUM NUMBERS OF
ONE MEMBERS ONLY.

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III. ON THE BASIS OF OWNERSHIP

1.GOVERNMENT COMPANY
GOVERNMENT COMPANY MEANS ANY COMPANY IN WHICH NOT LESS THAN 51
PERCENT OF THE PAID UP SHARE CAPITAL IS HELD BY (1) THE CENTRAL
GOVERNMENT OR (2)ANY STATE GOVERNMENT OR GOVERNMENT ,OR (3)
PARTLY BY ONE OR MORE STATE GOVERNMENT AND INCLUDES A COMPANY
WHICH IS SUBSIDIARY OF A GOVERNMENT COMPANY.
2.ONE MAN COMPANY
THIS IS A COMPANY IN WHICH MAJORITY OF THE SHARES ARE OWNED BY ONE
PERSON ONLY. THIS ONE PERSON VIRTUALLY HOLDS ENTIRE SHARE CAPITAL
OF THE COMPANY WITH A FEW EXTRA MEMBERS HOLDING JUST ONE OR TWO
SHARES EACH FOR THE PURPOSE OF COMPLETING LEGAL REQUIREMENTS OF
MINIMUM NUMBERS OF MEMBERS.

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IV. ON THE BASIS OF CONTROL OF
MANAGEMENT

1. HOLDING COMPANY [SECTION 2(4)]

A COMPANY IS CONSIDERED TO BE HOLDING COMPANY OF ANOTHER IF, BUT ONLY IF, THE
OTHER IS ITS SUBSIDIARY.
2. SUBSIDIARY COMPANY [ SECTION 2(87)]
A COMPANY IS KNOWN AS A SUBSIDIARY OF HOLDING COMPANY WHERE A HOLDING
COMPANY CONTROLS THE COMPOSITION OF BOARD OF DIRECTORS OF SUCH A COMPANY.

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V. ON THE BASIS OF LIABILITIES OF
MEMBERS

1. COMPANIES WITH LIMITED LIABILITIES

A. COMPANIES LIMITED BY SHARES [ SECTION 2(22)]
A COMPANY HAVING THE LIABILITY OF ITS MEMBERS LIMITED BY THE
MEMORANDUM OF ASSOCIATION TO THE AMOUNT, IF ANY UNPAID ON THE SHARES
RESPECTIVELY HELD BY ACT.
B. COMPANIES LIMITED BY GUARANTEE [ SECTION 2(21)]
A COMPANY HAVING THE LIABILITY OF ITS MEMBERS LIMITED BY THE
MEMORANDUM OF ASSOCIATION TO SUCH AMOUNT AS THE MEMBERS MAY
RESPECTIVELY UNDERTAKEN .
2.UNLIMITED COMPANIES
A COMPANY NOT HAVING ANY LIMIT ON THE LIABILITY ON THE LIABILITY OF ITS
MEMBERS IS TERMED AS AN UNLIMITED COMPANY.

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CONCLUSION

AS PER THE COMPANIES ACT 2013, EVERY COMPANY HAS TO REGISTERED

ITSELF BY THE COMPANIES ACT AND REGISTERED COMPANY SHALL BE
CAPABLE OF EXERCISING ALL THE FUNCTIONS OF AN INCORPORATED
COMPANY UNDER THIS ACT AND HAVING PERPETUAL SUCCESSION
WITH THE POWER OF ACQUIRE HOLD AND DISPOSE OF PROPERTY
BOTH MOVABLE AND IMMOVABLE, TANGIBLE AND INTANGIBLE.
AS PER THE SECTION 10 OF THE COMPANIES ACT 2013 WHERE THE
MEMORANDUM AND ARTICLE WHEN REGISTERED SHALL BLIND THE
COMPANY AND THE MEMBERS THEREOF OF THE SAME EXTENT AS IF
THEY RESPECTIVELY HAS BEEN SIGNED BY THE COMPANY AND BY EACH
MEMBER AND AN AGREEMENT TO OBSERVE ALL THE PROVISION OF
THE MEMORANDUM AND OF THE ARTICLES.
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