Service Description

A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared goals. A company can be created as a legal person so that the company itself has limited liability as members perform or fail to discharge their duty according to the publicly declared incorporation, or published policy. When a company closes, it may need to be liquidated to avoid further legal obligations.

Type of companies under the Companies Act

The Companies Act, of 2013, states that company classification is based on the number of members, whereas there are multiple categories based on which a company can be classified. For an instance, the Micro, Small, Medium Enterprise (MSME) Act categorizes companies in different categories as Micro Enterprise, Small Enterprise & Medium Enterprise, company registered under this act can avail of its benefits. Further to elaborate on the matter at hand, the companies can be further categorized based on the number of members associated with the company, liabilities of those members to the company, ownership of the company, or listing status.

One Person Company, OPC

As the name states, a single person holding the entity is resisted under OPC (One Person Company). As per this act, there can only be one member. The company registered under OPC enjoys its benefits and there can be a maximum of fifteen directors under this company.

Private Limited Company

A minimum of 2 members are required to register a Private limited company and cannot hold more than 200 members under a single entity. Along with this The Private Limited company needs to have 2 directors and can have a maximum of fifteen directors.

Public Limited Company

A public limited company is a type of business entity that allows the public to own company shares. A minimum of 7 members are needed to form a Public limited company whereas no limit to a maximum number of shareholders. Similar to Private Limited 3 directors are mandatory whereas a maximum of fifteen directors can be appointed in a public limited company.

Section 8 Company (NGO)

The purpose of the company is to promote and protect the interests of those belonging to the particular charitable class it aims to serve. The company must not engage in any activity for private profit or for any other result than the benefit of persons belonging to the charitable class that it seeks to serve. The company is registered as a Limited company and has in its objects the promotion of art, sports, research, religion, commerce, science, education, social welfare, protection of the environment, charity, or any other object. The profit earned should not be divided between the members instead should be spent on promoting its object only.

LLP (Limited Liability Partnership)

LLP which means LIMITED LIABILITY PARTNERSHIP in which at least two designated partners, having DPIN (Designated Partner Identification Number) is mandatory to form a partnership. There are a minimum of two partners to form an LLP & no limit to the maximum number of partners. There is a lesser number of Regulations applicable to the LLP as compared to the Company. It’s a wide term of Partnership & has been identified as a separate legal entity. Hence it is called a hybrid between a company and a partnership. The liability of the Partners is limited to their contribution. LLP can continue its existence irrespective of changes in partners. The rights and duties of the partners are governed by an agreement between the partners or between the partners and the LLP as the case may be.