Companies Limited by Shares
- Companies Limited by shares, as stated in section 2(22) of the companies Act 2013 refers to the companies in which its members are only accountable for the amount unpaid on the shares held by the individuals.
- A Company Limited by shares can be both public as well as private. All the companies under this must have “limited” in their name.
- Private companies have restricted number of shareholders, generally public companies are larger than private companies.
Companies limited by Guarantee
- Companies limited by Guarantee, as stated in section 2(22) of companies Act 2013 refers to the companies refers to the companies which neither have any shares nor any shareholders.
- Companies limited by guarantee are mostly used by NGOs or charities as these companies are generally made for not profitable purpose.
- All the companies under this do not necessarily need to have “limited” in their name.
One person company (OPC)
- One person companies (OPC), as stated in section 2(62) of companies Act 2013 refers to those companies which have only single person as member.
- One person company (OPC) is a type of structure which supports small business.
- OPC’s are always a private company.
- It is a concept which completely revolutionized corporate laws.
- One person companies should have a minimum of one director or maximum of 15.
Associate companies
- Associate companies, as stated in section 2(6) of the companies Act 2013 refers to a company having at least twenty percent of voting power of the other company.
- Any x company which has control over or equal to twenty percent (20 %) of total share capital of y company will be an associate company of y company.
- The company can also control business-related decisions of another company if there is such an agreement.
Private companies
- Private companies, as stated in section 2(68) of the companies Act 2013 refers to the company which is owned by a small group hence it does not offer its stocks for sale to normal people the stocks are offered or owned privately between very few people.
Public companies
- Public companies, as stated in section 2(71) of the companies Act 2013 refers to the company whose shares are publicly available, it should have minimum seven members and the maximum limit of members is not stated.
Hint:-
- All these above company have their own features and own specification, Before selecting any of the company, you should know about your business and their needs to the people who are intrested to buy your product or services and any other things.
- Working process of any Company will different and the source of product also.
- Always be sure and clear about your business and the structure of your business, the you have to select the company type, in this way your business will sutiable for your business and your business will rank higher, and you will get more earning, that will help you to develop your business on the higher level on country level, state level, world level, local level, international level and many more.
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