Question
State the various types of companies.
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Answer
(i) Based on a minimum number of promoters:
As per Company Act, 2013 (Section 3) Promoters can form 3 types of companies. Such types of companies are based on numbers of Promoters.
(ii) Based on Capital Structure [Section 3(2)]:
As per Company Act, 2013 (Section 3) Promoters can form 3 types of companies. Such types of companies are based on numbers of Promoters.
(ii) Based on Capital Structure [Section 3(2)]:
- Company Limited by Shares: In this type of company capital is formed by shares and the liability is limited.
- Company Limited by Guarantee: In this company, its members have guaranteed to contribute an amount of money either to the assets /of the company at the time of winding up towards the cost of winding up of the company.
- Unlimited Liability Company: In this company, the liability of members is unlimited, they are liable for all amounts of debts and liabilities.
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