Types of Companies in India

In India, companies can be classified based on various criteria, such as ownership, liability, and purpose. Here are the key types of companies under the Companies Act, 2013:

1. Based on Incorporation

a) Statutory Company – Formed by a special Act of Parliament (e.g., RBI, LIC).
b) Registered Company – Incorporated under the Companies Act.

2. Based on Liability

a) Limited by Shares – Shareholders’ liability is limited to unpaid share capital.
b) Limited by Guarantee – Members’ liability is limited to the amount they guarantee to pay.
c) Unlimited Company – Members have unlimited liability.

3. Based on Members

a) One Person Company (OPC) – Single shareholder, limited liability, suitable for small businesses.
b) Private Limited Company (Pvt. Ltd.) – Minimum 2 and maximum 200 members, cannot publicly trade shares.
c) Public Limited Company (Ltd.) – Minimum 7 members, no upper limit, can issue shares to the public.

4. Based on Control

a) Holding Company – Controls one or more subsidiary companies.
b) Subsidiary Company – Controlled by another company (holding company).
c) Associate Company – Another company holds 20%–50% of its shares.

5. Based on Ownership

a) Government Company – Minimum 51% owned by the government (e.g., ONGC, SAIL).
b) Foreign Company – Incorporated outside India but operates in India.

6. Based on Purpose

a) Non-Profit Organization (Section 8 Company) – For charitable purposes, profits are reinvested.
b) Producer Company – Formed by farmers or producers for collective benefits.