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Types of Companies

Statutory company:

These are the companies which are incorporated under the special act passed by the State Legislature or Parliament. For e.g. UTI, LIC, RBI, SBI, ICAI, etc. Such companies are not required to use the word 'limited' as part of their name. Such companies are required to get their accounts audited by Comptroller and Auditor General of India.

Government company:

According to section 617 of Companies Act “ A Government Company means any company in which not less than 51% of the paid-up capital is held by the Central Govt. or by state government or governments or partly by the central Government and partly by one or more state Governments and includes a company which is a subsidiary of a Government company.

Foreign company:

A company which is incorporated outside India, but has place of business or business operations in India.

Holding company:

A company is deemed to be a holding company, if the other company is its subsidiary company. A company becomes a subsidiary company when other company controls 51% or more of its paid-up share capital, has  right to appoint directors on its board, or is a subsidiary of another subsidiary company.

Subsidiary company:

A company is deemed to be a subsidiary of another company if and only if-

a) That other company controls the composition of its board of directors.

b) That other company holds more than half in its nominal value of its equity share capital.

c) That other company is a subsidiary of any company, which is that other’s subsidiary.

Registered company:

A company which is registered under The Companies Act, 1956.

Limited Liability Company:

A company in which the liability of the shareholders is restricted to the amount of unpaid calls on shares is known as limited company.

Unlimited Liability Company:

A company in which the liability of the shareholders is not restricted only to the amount of unpaid calls on shares is known as limited company.

Public Company:

According to Section 3(1)(iv) of the Companies Act, public company means a company:

a) Which is not a private company.

b) Which has a minimum paid up capital of Rs. 5,00,000.

c) Which is a private company (which is a subsidiary of a company which is not a private company).

Private Company:

According to Section 3(1)(iii) of the Companies Act, private company means a company which has a minimum paid up capital o0f Rs. 1,00,000 and by its articles-

a) Restricts the rights of members to transfer its shares.

b) Limits the number of members to 50.

c) Prohibits any invitation to the public to subscribe to any shares in, or debentures of, the company.

Listed company:

A company which has its securities are listed in any recognized stock exchange.

Unlisted company:

A company whose securities are not listed on any recognized stock exchange for trading.
 




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