Learn Types of company registration in IndiaHemlata Khandelwal / 2021-05-01 05:48:27
There have many types of companies that have been registered in India on some the foundation on many different-different reasons in India:
- Incorporation based formed companies
- Members based formed companies
- A company formed on the foundation of liability
- Company formed on the foundation of control or holding
- Other Company Kind Company
Learn Types of company registration in India
According to information gathered from various sources, there have some types of companies registered in India. So to know how to learn types of companies registered in India. We can classify them on different foundation. It can be classify by the companies on the foundation of Liability of the company, Number of company members, place of company registration, control over company and many more.
Learn Types of companies listed on the mode of incorporation
- Incorporation based Types of company registration in India:
Accordingly the companies can be grouped in 3 ways.
- Companies made on the foundation of special Acts - Royal Chartered Companies
- Companies created by a special order - Statutory companies
- Registered Companies Like General Company - Registered or Corporate Companies
Now know in details of Incorporation based Types of companies in india
- Royal Chartered Companies
Royal Chartered Companies are companies created by the Royal Charter means they are empowered or created by special order of a king or queen. The main examples of Royal Chartered Companies are East India Company, BBC, Bank of England etc.
- Statutory company:
These are companies formed by an act that is special which is passed by the government of Central or State and are invested in these companies with compulsory powers.
Mainly it is Responsible to do the work/business of importance for national. Some statutory companies are like: RBI bank (under RBI Act, 1934), LIC of India (under LIC Act, 1956).
- Registered or Corporate Companies
All other types of companies built up under the Companies Act launched by the legislative are called registered or manufactured companies.
After the registration these companies come into entity ourselves under the Act of companies and their certificate of incorporation is being provided by (ROC) is a good example of this company - Google India Private Limited Company.
Also Read- Company registration process of startup
- Learn Types of companies registration in India on the foundation of the deal of members:
Based on the fellow of members, Companies can be mainly divided into three categories.
- Public Company - public limited company
Limited company is a company with paid-up capital is Rs. Five lakh or more. The legal existence of a PLC does not depend on its share holders as well as the members Liability are also limited.
To create such a company, it is necessary to appoint seven share holders minimum and at-least three directors, but there is no maximum limit on how many shareholders can be in such a company.
In such a company, the company has to call the public to sell its shares and it collects capital from the sale of shares, as well as permits to shares transfer to their share holders.
But share holders do not have the right to participate in the day-to-day management of the company. Thus, management and ownership in such a company belong to different people. The company's main decisions are taken by the Board of Directors.
- Private company - Private limited company
This is the most wanted type of company. The paid-up capital of such a company is 1 lakh rupees or more. Such a company can have a minimum of 2 and up-to 15 directors. And when it comes to shareholders, there can be minimum 2 and maximum 200 share holders and their liability depends on the type of company.
Accordingly, their liability may be limited or unlimited. In this company, we cannot transfer shares with the public like a public limited company. There has limited shares to transfer to the members of this company only.
Private limited company is free from many rules and regulations that apply to public limited companies.
To start a PLC, only the Certificate of Incorporation (Company registration in India) is required.Whereas for starting a public limited company, a Certificate of Commencement is also required, like a private limited company with its self name Private. It is mandatory to enter the word Limited.
- One Person Company - OPC
One Person Company i.e. OPC was introduced as a new type of company in India under the Companies Act of 2013. As the name itself suggests, the company has sole ownership.
But even then the owner’s liability is limited, which is separate from his personal property. Thus, if there is a need to recover losses or if liquidation of the company is done at any time, it can be easily accomplished. Also, it is known as Proprietorship. It is not necessary to have any minimum share capital in such companies.
In above we discussed about these types of the companies here we talk about the remaining registered companies in India.
- A company formed on the foundation of liability
- Company formed on the foundation of monitoring or holding
- Other Company Kind Company
Let’s come to go continue about how to learn the types of companies in India?
Types of company registration in India:
- Types of Company on the ground/foundation of Liabilities
Types of companies based on the member’s care/liability:
In concern ofloss, the members of a company will complete it by paying from their personal property and, also, by paying only those shares to the border of the par shares that held by the members. Depending on how that company is registered.
Th companies can be classified in different three ways on the ground/foundation of members' care/liability
- Limited company on shares ground/foundation
- Limited company by guarantee
- Unlimited companies
Now we will discuss in details of three foundation of members
- Limited Company on Share ground/foundation -
Sometimes the shareholders of the company do not pay the full price of the shares at one time. The liability/care of Shareholders' liability in a share basis company is moderate to the boder of the par of the stake they hold. In other words, in concern of a deficit, the member is liable only till he has paid the remaining amount of his shares. Most private limited companies are similar.
- Limited Company by Guarantee -
The MOA of these companies mentions the amount of money. Its members are guaranteed to pay, Scilicet, in concern of liquidation or loss. That is, in event of liquidation or loss, it is the liability/care of the shareholders/stakeholders to pay that certain amount to cover company’s loss.
- Unlimited Companies -
The shareholders' care/liability is not limited in such a company. Therefore, in concern of liquidation or in concern of loss, the company can use the personal assets of the shareholders to cover its liabilities.
The liabilities/ amenableness of the members of an unlimited company remain until the company's entire debt is repaid. Due to all the related reasons in the current time the unlimited companies does not exist.
- Learn the Types of companies in India based on monitoring or holding:
On this ground/foundation, there are two different types of companies comes in this Filed.
- Holding and subsidiaries
- Associate companies
- Holding and subsidiaries -
Sometimes the shares/stake of a firm/company is held in whole or in part of another company. The company that keeps these shares with them becomes the owner of these shares. That is, the parent or a holding firm/company and the company holding the shares become the parent company. And, it also becomes the subsidiary of the company.
- Associate Companies -
Companies that have significant influence over other companies are associate companies. This significant impact may equal the ownership of approximately 20% of shares of another subsidiary. The associate company has control over its subsidiary under an agreement.
Other types of companies:
- Government Companies –
- Foreign companies
- Charitable companies
- Inactive companies
- Fund companies
- Public financial institutions
Read this below other types of companies in details-
- Government Companies:
Those companies are the government companies that hold more than 50% capital either from the central government or more than one and one state’s government or jointly with the central and more than one or one government of the state.
- Foreign Companies -
The companies which are incorporated from the outside of India are known as foreign companies. They also do business by using a small space to do business in India or together with another company.
- Charitable Companies -
Such companies are also comes below the section-8 of companies act 2013. These companies have their charitable objectives. And it should take from ROC the Company registration in India.
The main charitable objectives of these companies are to promote arts, science, culture, education, religion, trade, sports, etc.
- Inactive Companies -
These companies are mainly formed for coming projects. The companies don’t have any significant transactions etc. and also do not fulfill all the compliance of regular companies.
- Nidhi/Fund Companies -
The fund company works to promote savings and savings habits among its members. Here the company members give some deposits to the company that is used for their benefits. For this you can take a company registration in India.
- Public Financial Institutions -
Unit Trust of India and the LIC are the number of companies that are considered public financial institutions. These are the governments essentially companies that undertake public financing.
If you like to start a limited or private limited company, you will be responsible for it. It should be aware that keeping all the above things remember while opens a company. And take the companies LLP company registration in India and also don’t forget to file annual compliance for every registered company.