As per Companies Act, 2013 companies in India are classified into different types based on structure, ownership and liability:
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Private Company:
A company which restricts transfer of shares, It can be incorporated with minimum 2 members and maximum 200. Liability is limited to members’ shares.
Example: Infosys, Tata
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Public Company:
A company which is not a private company, It can be incorporated with minimum 7 members and 3 directors. It can raise capital from the public, and shareholders’ liability is limited.
Example: HDFC bank ,SBI
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One Person Company (OPC):
A company with a single member, to promote individual entrepreneurship. Member’s liability is limited to his unpaid shares.it is introduced in companies act 2013
Example: Flipkart ,Truffle house
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Charitable Company:
Formed for charitable purposes like education or social welfare. Profits should be used for the company’s objectives, and members’ liability is limited.
Example: World wildlife fund
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Holding and Subsidiary Companies:
A holding company controls a subsidiary by holding more than 50% of its shares.
Example: Google(Subsidiary Company), Alphabet INC(holding company)
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Government Company:
A company where the government holds more than 51% of the paid-up share capital.
Example: National power thermal corporation
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Foreign Company:
A company incorporated outside India but has a place of business in India.
Example: Google. Microsoft
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Non-Profit Company:
Formed for promoting causes like social welfare, with profits used only for furtherance of its objectives.
Example: Doctors without borders,Oxfam
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Limited Liability Partnership (LLP) :
Members’ liability is limited to their contribution. (LLP Act, 2008)
Example: Khaitan and co
Also Read- Decentralized Shares and Companies Act’2013
ARTICLE WRITTEN BY – Gaddam Sneha Deepthi
EDITOR – Nancy Sharma
