It is short presentation about Types of companies- on the basis of Number of Members.

1. TYPES OF COMPANIES
ON THE BASIS OF
Number of Members

2. Private
Company
One Person
Company
Public
Company
Types

3. PRIVATE COMPANY
• Min Members – 2
• Max Members – 200
• Minimum Paid up Capital as 1,00,000 or above as
may prescribed by the article of the company.
• Restricts the rights to transfer shares and Debentures.
• Cannot invite Public to subscribe its share
• Must have atleast 2 Directors.
• Can issue share capital of any kind’
• Can commence Business after Incorporation

4. PUBLIC COMPANY
• Min – 7
• Max – Unlimited
• Minimum Paid up Capital is 5,00,000 or
above as prescribed by article of the company.
• Must have atleast 3 Directors.
• Invites general public to buy shares of the Company.
• Shares and debentures are freely transferable.
• Can only commence its business after getting Certificate of Commencement.
• Managerial remuneration cannot exceed 11% of net Profits.

5. ONE PERSON COMPANY
• Company formed by a single person.
• Minimum paid up capital is 1,00,000.
• Directors can be 1- 15.
• Invitation to general public for
securities is prohibited.
• Separate legal entity.
• Limited Liability.
• Registration is required.