Companies represents a set of Skillful Resources `
A Company defines by its policies working by members and associates in definite direction to lead the organization. The formations, liability, management and ownership of all companies differ from each other. Therefore the companies define on basis of ownership and nationality.
On Basis of Ownership –
- Public Limited
- Private Limited
On Basis of Nationality –
- Indian – Company registered and operates in India under Indian Company Act,1956
- Foreign – Company registered and formed outside India can have operation in India.
PUBLIC LIMITED A minimum members to constitute a public company will be having seven(7) in numbers. They all must have to paid upto 5 lacs. A public limited company is a voluntary association of members and has a separate legal existence and the liabilities. The members are can be any in numbers as no restrictions. The shares are allotted to members are freely transferable. It can raise funds from public by open invitations to allowing selling its shares or accepting fixed deposits.
PRIVATE LIMITED A minimum members to constitute a private company will be having two(2) in numbers.They have to paid not less than 1 lacs. As per the Company act 1956, total membership to be not exceed 50. The shares allotted to its members are not freely transferable. Not allowed to raise funds from public by open invitations. Private companies having limited liabilities, can maintain well in limited circle and privacy.
GOVERNMENT The companies of the Government (either state or central government or both) holds a majority share capital i.e, not less than 51%. However, if companies having share less than 51% , holding still can held by the government provided control and management lies with the government.