Kinds of companies

KINDS OF COMPANIES

Legal Environment and Business

What is a company?
A Company is a voluntary association of persons formed for the purpose of doing business, having a distinct name and limited liability.
 They can be incorporated under the Companies Act
(it may be any type of company)
 Corporations enacted under special enactments (
Even those which are incorporated outside India)
 Corporate sole
 Any other body corporate notified by the central government Features of a company
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A company is considered as a separate legal entity from its members, which can conduct business with all powers to contract. Independent corporate entity (Saloman
V. Saloman) It is independent of its members and shareholders

Other features
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Limited Liability ( either by share or guarantee)
It can own property, separate from its members. The property is vested with the company, as it is a body corporate. The income of the members are different from the income of the company ( Income received by the members as dividends cannot be same as that of the company) cont….

Features continued..
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Perpetual succession: Death of the members is not the death of the company until it is wound up
As it is a legal entity or a juristic person or artificial person it can sue and be sued
The company enjoys rights and liabilities which are not as that of the members of the company

Types of Companies
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Limited Company ( Limited by share or by guarantee) Unlimited company
Government Company
Foreign Company
Private Company
Public Company

Limited Company
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Limited by Shares

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Limited by Guarantee not having share capital

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Limited liability i.e. only the amount unpaid on the shares

Limited liability while winding up the company

Limited by guarantee having share capital
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Limited liability while winding up the company, and the amount unpaid on the shares