Meaning of Company and Different kinds of companies

1. Corporate
Knowledge
Meaning of Company and Kinds
of Company

2. Incorporated by
Thorough the Process of Law

3. Company is an Separate legal entity
incorporated by group of person
through the process of law

4. Common seal
Separate
Legal Entity Perpetual
Existence
Limited
Liability of
Members
Separate
Ownership and
Management
Incorporate by
Process of
Law

6. KINDS OF COMPANIES
 Private Company: A private
company is one which has a
minimum paid share capital as
may be prescribed and which by
its AOA:
 Restricts the right of its share
 Limits the number of its members
excluding present and past
employee member to 200
 Prohibits any invitation to the
public to subscribe for any
securities of the company
 It must have at least 2 members
 It must have min. two directors
 “Private Ltd” Word is used after
the name of company
 Public Company: A public
company is a company which
 Is not a private company or
 Is a private company, being
subsidiary of a company
which is not a private
company and
 Which has minimum paid up
share capital as may be
prescribed
 It must have at least 7 members.
 It must have min. 3 directors
 “Limited” word is used after the
name of the company

7. Government company
 Any Company
 In which not less than 51% of the paid up
share capital held by
 Central government
 Any State government/s
 Or partly by CG and partly by SG/s

8. Holding and Subsidiary
Company
 A subsidiary is a company with voting stock
that is more than 50% controlled by
another company, usually referred to as the
parent company or the holding company.
 A subsidiary is partly or completely owned by
the parent company, which holds a
controlling interest in the subsidiary
company.

9. Holding and Subsidiary
Company

10. Limited Company and Unlimited
Company
 Limited Liability Company: A company having the
liability of its members limited by the
memorandum to the amount, if any, unpaid on
shares respectively held by them is termed as
“Company Limited by shares
 Unlimited Liability Company: It’s a company
where the liability of members is unlimited. It
means in the event of winding up, the debts of the
company shall be met from private property of the
shareholders

11. Limited Company and Unlimited
Company
My Liability
is unlimitedMy Liability
is Limited

12. Company Limited by Guarantee
It’s a company having the liability of its
members limited by the memorandum to such
amount as the members may respectively
undertake to contribute to the assets of the
company in the event of its being wound up.

13. One Person Company
 It’s a company which has only one member
 It’s a company incorporated as a private company.
 Rule 3 of the companies act, 2013 provides that
 Only natural person being Indian citizen and resident in
India can form one person company.
 One person can form only one ‘one person company’
 It can be formed for charitable purpose
 Its paid up share capital is not more than Rs.50lakh
 Its average annual turnover should not exceed
Rs.2crore

14. Difference among one person company, private company and
public company
Public companyOne Person company Private company
 Min. 7 and
Max no limit
 Transfer of
share is
usually
without
restriction
 Share can be
offered to
public
 Min 2 and
Max 200
(excluding
present and
past employee
members)
 AOA restricts
the transfer
of share
 Share can
not be
offered to
public
 Min. and
Max member
is one.
 Not transfer
of share as
only one
member
 Shares can
not be
offered to
public

15. Difference among one person company, private company and
public company
Public companyOne Person company Private company
 Min. 3
Directors
 Max. 15
directors
 Can invite
and accept
deposit from
public
 The Word “
Limited” is
used as part
of name
 Min 2
Directors
 Max. 15
Directors
 Can not
invite and
accept public
deposit
 The word
“Private
Limited” are
used as part
of the name
 Min. one
director
 Max
directors 15
 Can not
invite and
accept
deposit from
public
 The word
“OPC” is
used as part
of name