Types of Companies.pdf

Types of companies is a topic from the 'Forms of organizations' chapter.

1. TYPES OF
COMPANIES

2. TABLE OF CONTENTS
01Public Company 02Private Company

3. AWESOME
WORDS

4. Business Terms
1
2
3
Certificate of incorporation: Certificate which specifies the birth of
the company as a separate entity or a company legally comes into existence
or becomes a separate legal entity on the date stated in its certificate of
incorporation.
Index of members: It can be defined as alphabetically arranged list of
members of a company, with page numbers on which their information
can be found.
Certificate of commencement: The certificate from the concerned
authority allowing the builder for commencement (beginning) of
construction of the property (after ensuring that all set criteria have
been met).

5. Quorum: the minimum number of members of an assembly or society that
must be present at any of its meetings to make the proceedings of that
meeting valid.
Managerial remuneration: It is compensation for services provided to a
company in a managerial capacity. This can include cash payments, along
with benefits like stock options, health insurance, and bonuses.
5
6
4Director: A member of the board of people that manages or oversees
the affairs of a business (a person in charge of an activity or a
department).

6. PRIVATE
COMPANY
01

7. According to the Companies Act 2013 a private company
should have the following features:
●Should be established with a minimum of 2 shareholders.
●Can be started on the issue of Certificate of Incorporation.
●Must use “Private Limited”(Pvt. Ltd.) after the name of the company.
{Eg: Majid Al Futtaim Pvt. Ltd.(Dubai) and Hindustan Coca-Cola Beverages Pvt. Ltd.(India)}
●Must have a minimum paid up capital of Rs.100,000 (India) or Dhs.5000,000 (Dubai
Pvt. JSC).
●It raises funds(capital) from its shareholders only.
●It restricts the shareholdersʼ right to transfer shares to outsiders.
●It cannot invite outsiders (public) for issue of shares or any kind of loan or deposits.
●It can have a minimum of 2 directors in the company.

8. Examples

9. 02
PUBLIC
COMPANY

10. ❏Should be established with a minimum of 7 shareholders.
❏Can start the company only when Certificate of Commencement is received.
❏Must use “Public Limited” (PLC) after the name of the company.
{Eg: First Abu Dhabi Bank PLC (UAE) and Indian Oil Corporation Ltd. (India)}
❏Should have a minimum paid up capital of Rs.500,000 (India) and Dhs.10,000,000
(Dubai Public JSC).
❏ It raises funds from its shareholders as well as the general public. (Capital)
❏The shareholdersʼ can transfer shares to outsiders.
❏It can invite outsiders (public) for issue of shares or any kind of loan or
deposits.
❏It can have a minimum of 3 directors in the company.
According to the Companies Act 2013 a public company should
have the following features:

11. Examples

12. SUBSIDIARY OF
Public Company
If a public takes over a private
company then the private
company is called as subsidiary
of public company and is
considered as a public company.

13. COMPARATIVE STUDY

15. THANK YOU