The Company is a voluntary and autonomous association of a person, this is often made for achieving business activities. Companies are structured in numerous ways. A company may be a sole proprietorship, partnership or a corporation depending on the kind of company you are dealing with.
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Top 4 company_types_and_its_features
1. Top four Company Types and its Features – Solubilis
What is “Company”?
The Company is a voluntary and autonomous association of a person, this is
often made for achieving business activities. Companies are structured in
numerous ways. A company may be a sole proprietorship, partnership or a
corporation depending on the kind of company you are dealing with. It is not
associate with a person but a separate legal entity.
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3. Private company and its features:
In private company, there are many features.
Transferring of shares are restricted.
Shares are not easily transferable as like public firms.
The articles state that whenever the shareholders desire to transfer the
shares, he must first provide that to the existing member of the corporate.
The director sets the value of the shares.
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4. The company members should be at least two and it shouldn’t exceed fifty
which excludes the employees of that company.
Where two or more persons holds one or more shares conjointly will be
treated as a single member.
It is necessary to include ”Private Ltd” at the end of the private limited
company.
Minimum paid-up capital should be 1 Lakh.
A Private company needs to make its own arrangement it would not be
allowed to invite the public for subscribing for the shares and debentures.
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Private company and its features
5. Public Company and its features:
The public company is the one which is
contrary to the private company which
is one of the main types of a Company.
When forming, there should be at
least 7 members in a company and
there is no restriction on the number of
its members. The article does not
contain any provisions on the
transferability of shares. It actually
invites the general public to subscribe
or purchase its shares or debentures.
The shares would be dealt in a stock
exchange. Minimum paid-up capital
should be 5 lakhs.
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6. Limited Liability Partnership Company and its features:
LLP is a well-recognised form of business
organisation. It combines the benefits of both
the corporate and a partnership into a one
form of organisation. It may be a new kind of
company but it enables professional
knowledge and entrepreneurial skill to
combine and operate in an innovative and in a
skilful manner.
It also provides to the traditional partnership firm with unlimited liability. By
incorporating an LLP, the members will avail the advantage of limited liability and
the flexibility of dealing with internal management on the basis of mutually arrived
agreement in the partnership firm.
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8. One person Company and its features:
It is a kind of firm which has only one person as a member or a shareholder
and minimum paid-up capital amount should be five lakhs of rupees. The
“one person company” should be mentioned below the name of the one
person company. The nominee name should be indicated in the
memorandum with the prior consent. The nominee can withdraw his given
consent at any time.
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