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Company And Its Types

As per S 3(1)(ii) of CA 2013, Company means a company formed and registered under the Companies Act, 1956 or under the previous law relating to companies. According to Lord Justice James a company is "An association of many persons who contribute money or money's worth to a common stock and employ it in some trade or business and who share profit and loss arising there from".

It has its own legal identity and is entitled to rights and duties that are separate from those possessed or carried by its members. As per s. 3 of CA 2013, the types of companies are public companies (Min - 7, Max- No

Limit), private companies (Min - 2, Max - 200) and one person company (only one person).

One Person Company (OPC): According to S. 2(62) of the CA 2013, a one-person company

(OPC) is one that has one member only. OPC must have at least one director. As a result, it will be formed as a private corporation with only one director and member.

Private company:
The private company confines the power to transfer its shares; restrict the amount of members to 200 only; prevents any call to enroll for the company's shares/debentures; and forbids any solicitation or receipt of deposits from the public - as per S. 3(1)(iii) of CA 2013. It should have its own set of AOA and a minimum of two directors are required. At the end of its name, the phrase "Private Limited" must be appended.

Public company:
A corporation that is not a private company is referred to as a public company. It is a private corporation that is a subsidiary of a corporation (not private) - as per s. 3(1)(iv) of CA 2013. It must have a minimum of 7 members and 3 directors.

Holding & subsidiary and associate company:
As per s. 4(4) of CA 2013, a corporation is considered to be the holding company of other if that other is its subsidiary. When a corporation owns the proportion of BOD of another corporation or when a company owns more than 50 percent of another company's equity share capital, the former is the holding company and the latter is the subsidiary company; When one corporation is a subsidiary of another corporation that is a subsidiary of the controlling company, the latter becomes the subsidiary of the controlling company. The companies, as described under Section 2(6) of CA 2013, are those in which another company has a major influence, but they are not subsidiaries of the influencing companies, which are referred to as Associate Companies. Joint Venture Companies are one type of associate company.

Small companies:
Under the CA 2013, a "small company" is a new type of private corporation. A private company's size, defined as paid up capital and turnover, is used to classify it as a small business i.e., P aid-up capital of up to 50 lakhs & Turnover of up to 2 crores. In other words, such businesses are small private corporations.

Government company:
A Government Company is one in which the Central Govt. or any State Govt. or Govts., or partially by the Central Govt. and partly by one/more State Govts. owns at least 51% of the paid-up share capital. A Government company is also referred to as a subsidiary of a Government company. The only backdrop is that the absence of autonomy.

Statutory corporations:
It is established by a law passed by Parliament or the state legislature. A legislative amendment is the sole way to change its structure. It is immune from Parliamentary scrutiny in its day-to-day operations. Employees are not government servants, thus there is freedom in terms of people. It is a legal entity with the features of a company. It obtains cash from lending and revenue generated from the sale of goods/services which results in Independent finances. CAG is in charge of the audit (commercial audit). It has Business-oriented operations.

The goal is to raise awareness about a social issue. Profits may be earned, but they cannot be distributed as a dividend to the members. The Central Government has given a licence. It is not necessary to use the terms Ltd. or Pvt. Ltd. The MOA & AOA are not subject to stamp duty. Its goal cannot be changed without prior consent from the central govt. (Section 25)

Foreign Company:
A foreign company is one that is located outside India but it does have a registered address within India, which might be a physical/electronic address, or control through the company's agents, representatives, or management [ section 2(42)].

Indian Company:
Any company registered under the Companies Act, 2013, or any other preceding statute is known as an Indian Company. An Indian company can use its office address to justify its locus standi, and the statute offers a framework for employing such rights by an Indian firm. [section 2(20)]

Dormant Company:
A dormant company is one that is registered under the Companies Act but does not engage in any "significant accounting transaction". A corporation that has been established and registered under the Act for an upcoming projects or to hold assets or intellectual property and has no substantial accounting transaction is entitled to apply to the Registrar for the status of a dormant company, according to the Companies Act 2013.

The primary goal of gaining or maintaining a company's dormant status is to ensure that it preserves its corporate status while not conducting any operations. A company that has not been engaged on any activity or has not had any substantial accounting activity may make an application to registrar for the status of a dormant company under s. 455 of CA 2013. Rule 3 & 6 of companies (miscellaneous) Rules 2014 provides the conditions that must be fulfilled by any company to obtain the dormant status.

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