WHAT IS COMPANY & IT'S TYPES

COMPANY  & TYPES

A company is a legal entity formed by a group of people to engage in and operate a business enterprise, either commercially or non-commercially. Companies can be categorized based on their ownership structure, liability, and purpose.

Here are the *types of companies* in short:

### 1. *Private Limited Company (Pvt. Ltd.)*
   - *Description*: A privately held business with limited liability, not publicly traded.
   - *Key Features*: 
     - Limited shareholders (up to 200).
     - Shares are not freely transferable.
     - Personal liability of members is limited to their shareholding.

### 2. *Public Limited Company (PLC)*
   - *Description*: A company whose shares are available to the public and traded on the stock exchange.
   - *Key Features*: 
     - Minimum of 7 shareholders, no upper limit.
     - Must issue a prospectus to the public.
     - Shares are freely transferable.

### 3. *One-Person Company (OPC)*
   - *Description*: A company that can be formed by a single person, offering full control with limited liability.
   - *Key Features*: 
     - Only one shareholder.
     - Suitable for small entrepreneurs.
     - Conversion to a private or public company required if certain conditions are met.

### 4. *Limited Liability Partnership (LLP)*
   - *Description*: A hybrid structure combining the flexibility of a partnership with the limited liability of a company.
   - *Key Features*: 
     - Partners have limited liability.
     - Not responsible for other partners' misconduct.
     - Suitable for professionals (lawyers, accountants).

### 5. *Sole Proprietorship*
   - *Description*: A business owned and operated by a single individual.
   - *Key Features*: 
     - No legal distinction between the owner and the business.
     - Unlimited personal liability for debts and obligations.
     - Easy to set up and operate.

### 6. *Partnership*
   - *Description*: A business owned and run by two or more people.
   - *Key Features*: 
     - Shared profits and liabilities.
     - Partners have joint responsibility for debts.
     - Can be either limited or general partnership.

### 7. *Non-Profit Organization (NPO)/Non-Governmental Organization (NGO)*
   - *Description*: A company formed for charitable, educational, religious, or public-service objectives rather than profit.
   - *Key Features*: 
     - No profits are distributed to owners or shareholders.
     - Must reinvest surplus for the organization’s goals.

### 8. *Holding Company*
   - *Description*: A company that owns shares in other companies, controlling them without being involved in their day-to-day operations.
   - *Key Features*: 
     - Main purpose is to manage and oversee other companies.
     - Can reduce risks and organize control over various companies.

### 9. *Subsidiary Company*
   - *Description*: A company controlled by another company (the parent company) which holds a majority of its shares.
   - *Key Features*: 
     - The parent company has control over decision-making.
     - Operates as a separate legal entity.

### 10. *Unlimited Company*
   - *Description*: A company where there is no limit on the liability of its members.
   - *Key Features*: 
     - Members are fully liable for the company’s debts.
     - Not common in modern business structures.

These different company types provide varying degrees of flexibility, liability protection, and control depending on the business needs and goals.

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