Types of Company

The word Company denotes any entity fashioned beneath the businesses Act, 2013. Most people equate the word with a non-public restricted Company; but, a corporation may generally be a non-public Ld. or One Person Company or Ld. or Section eight Company. supported the activity/requirement of the promoters, differing types of company may be incorporated beneath the businesses Act, 2013.

Private Ld.

Private Ld. may be of 3 types: i) company restricted by shares, ii) a corporation restricted by guarantee, iii) unlimited company. personal Ld. square measure those kinds of company that have a minimum of 2 members and most of two hundred members

The company restricted by Shares

The company restricted by shares is that the commonest kind of personal Ld.. a corporation restricted by shares means that a corporation having the liability of its
members restricted by the memo to the number, if any, unpaid on the shares respectively command by them.

The company restricted by Guarantee

The company restricted by guarantee means that a corporation having the liability of its members restricted by the memo to such quantity because the members could respectively undertake to contribute to the assets of the corporate within the event of its being wound-up.

Unlimited Company

Unlimited company means that a corporation not having any limit on the liability of its members.

One Person Company

One Person Company (OPC) may be a fresh introduced kind of company. OPC was introduced in the Companies Act, 2013 to support entrepreneurs UN agency on their own square measure capable of beginning a venture by permitting them to form one person economic entity. in an exceedinglyll|one amongst|one in every of} the largest benefits of an OPC is that there may be only 1 member in an OPC, whereas a minimum of 2 members squares measures needed for incorporating and maintaining a non-public Ld. or a liability Partnership. like a corporation, an OPC may be a separate legal entity from its members, offers liability protection to its shareholders, has continuity of business and is straightforward to include.

Limited Company

A limited company needs a minimum of 3 administrators and has no limit on the utmost variety of members (shareholders). Ld. has a lot of rigorous and intensive compliance necessities in comparison to a non-public Ld.

Section eight Company

A Section eight Company of firms, 2013 is that the same as Section twenty-five company beneath the previous firms Act, 1956. Section eight company is one in every of the foremost fashionable types of Non- Profit Organizations in the Republic of India. A Section 8 company may be established for “promotion of commerce, art, science, sports, education, research, welfare, religion, charity, protection of setting or any such different object”, provided it “intends to use its profits, if any, or different financial gain in promoting its objects” and “intends to ban the payment of any dividend to its members.”. To register a district eight company in the Republic of India, the method is comparable to the incorporation of different firms (except a further license is required).

“People square measure the foremost necessary factor. Business model and merchandise can follow if you’ve got the proper individuals.” -Adam Neumann, Co-founder of WeWork

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