What are the various types of companies?

Generally there are two common types of companies which are registered under this Act, they are:-

1. Private company
2. Public company

However, there are other types of companies which are shown as under:-

1. Chartered Companies: The companies which are incorporated by a charter granted by the “Crown” in exercise of royal prerogative Eg. East India Company.
2. Statutory Companies: The companies incorporated by means of Statute of special Act of the parliament or any State Legislative Eg. RBI, LIC etc.
3. Registered Companies: The companies registered under the companies Act, 1956 or the earlier Companies Act.

Registered Companies are of the following types:

(i)         Companies limited by Share: The companies in which the liability of the members are limited by the memorandum to the amount, if any, unpaid on the share respectively held by them.

(ii)       Companies limited by Guarantee: The companies in which the liability of the members are limited to such amounts as they may respectively undertake by the memorandum to contribute to the assets of the company in the event of being its wound up.

(iii)     Unlimited Companies: The companies in which the liability of the members is not limited at all.