Types

• Companies are classified on the basis of • Incorporation• Liability of members• Number of members• Ownership• control

On the basis of incorporation

Statutory companyThese companies are those in corporate under

special act passed by the parliament or the state legislature.

Registered companiesThose companies are those formed and

registered under the Indian companies act.

On the basis of liability• Company limited by shares• A limited company is one in which the liability of the members is limited.

The liability of the members is limited to the amount if any unpaid on shares, held by them.

• Companies limited by Guarantee• Those companies are registered companies in which the liability of the

shareholders to contribute to the asset of the companies in the event of the company being wound up is limited by its memorandum of association.

Unlimited companies• A company not having any limit on the liability of its members is termed as

the unlimited companies.

On the basis of members

• Private companiesA private company means a company which has

minimum paid up capital of one lack rupees.Public companiesA public company is not a private company and

which has minimum paid up capital of five lack rupees or as prescribed.

On the basis of ownership

• Government companies • The company which is owned by government.

Paid up capital of the Govt in these companies is minimum 51%.

• Non government (foreign company) • The companies registered outside the India

and run business within India.

On the basis of control

• Holding companyHolding company is the company which holds

and control the other company.Subsidiary companyIt is the company which is holded by other is

known as subsidiary of other.