Meaning of company and its kinds

Meaning of Company and Different kinds of companies

1. Corporate Knowledge Meaning of Company and Kinds of Company

2. Meaning of Company Company is an Separate Legal Entity Incorporated by Thorough the Process of Law

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

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

5. Subsidiary Company ? Public company? Government Company ? Limited company ? Holding Company ? Private Company ? KINDS OF COMPANIES

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 Limited Company Sec 2(22) Unlimited Company Sec 2(92) My Liability is unlimited My 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 company One 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 company One 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