Kinds of Company

 Companies can be classified based on various criteria:

  • On the Basis of Liability:

    • Limited by Shares: Liability of members is limited to the unpaid amount on shares.

    • Limited by Guarantee: Liability is limited to the amount members undertake to contribute to assets in the event of winding up.

    • Unlimited Company: No limit on the liability of members.

  • On the Basis of Members:

    • One Person Company (OPC): Only 1 member.

    • Private Company: Minimum 2, maximum 200 members.

    • Public Company: Minimum 7 members, no maximum limit.

  • On the Basis of Control/Ownership:

    • Holding and Subsidiary Companies.

    • Associate Companies: Where another company has "significant influence" (at least 20% voting power).

    • Government Companies: 51% or more share capital held by the Government.

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