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1. Classification of Companies
PRESENTED BY
ZAIB ZAFAR

3. ACCORDINGTO INCORPORATION
Chartered Company
 These companies are formed by the royal order or charter
The word "limited" is not used with the name of company.
The management of company is run according to the provisions of charter.
The members are not liable for the debts of company.
(e.g) Chartered Bank of England, Royal Bank of Scotland and East India Company etc

4. ACCORDING TO INCORPORATION
Statutory Company
These companies are formed by the order of president or by the special act of parliament.
The main purpose of these companies is the welfare of public and profit is not so important.
It is not essential for these companies to use word "limited".
These companies have monopoly in their respective fields.
The liability of shareholders is limited to the value of shares purchased.
(e.g) State Bank of Pakistan (SBP), Zarai Taraqiati Bank Limited (ZTBL) and WAPDA etc.

5. ACCORDINGTO INCORPORATION
Registered company
Registered company is formed under Companies Act 2017. It also includes an existing company
defined in section 2(17) of said Act.
These companies are allowed to do various industrial, agricultural and trading businesses.
The rules regarding company's formation, management and winding up are stated in Companies
Ordinance.
(e.g) Adam Ji Industries, Wazir Ali Industries and SubhanTextile Mill etc.

6. ACCORDING TO OWNERSHIP
Public Company
In listed company, minimum number of members is seven but there is no restriction for maximum
The word limited is used after the name of company.
The minimum number of directors is seven.
Shares of the company can easily be sold and transferred
The liability of the shareholders is limited to the value of shares purchased.
The audit of company's accounts is compulsory every year.
It is necessary for the company to call statutory meeting within three to six months of its commencement.
The minimum number of promoters is seven.
It is Necessary for the company to issue prospectus.
E.g PTCL,PEL, SNGPL

7. ACCORDING TO OWNERSHIP
Private Company
The private company may be of following two types
a) Single Member Private Company
The Securities and Exchange Commission of Pakistan (SECP) an opportunity to introduced the
concept of Single Member Company (SMC) through amended Ordinance 2002 (SMC Rules
2003) in Pakistan. The objective of the concept of single member company is to provide single or
sole owner to enjoy the benefits of limited liability. The main characteristics of SMC are as under.
There is only one member or shareholder in this company.
The company uses the words (S.M.C Private Ltd.) after its name.
The sole or single member is responsible for the management of the company.

8. ACCORDING TO OWNERSHIP
a) Single Member Private Company
The shares of the company are non-transferable.
The liability of the owner of company is limited.
The issuance of prospectus is not necessary for the company.
The company has a separate legal entity apart from its single member.
The business life of company is long or durable because the heirs of single or sole owner can
continue the business in case of his death:
The promoter of SMC is its single owner.
For example, Pearl Consultancy (SMC-Pvt Ltd.), Islamabad.

9. ACCORDINGTO OWNERSHIP
(b) Multi Members Private Company
In this company, minimum number of members is two and maximum is fifty.
The company uses the word "Private" with its name.
Minimum number of directors are two.
The shares of the company are non transferable.
 The liability of the shareholders is limited .
It is not essential for the company to issue prospectus .

10. ACCORDINGTO OWNERSHIP
The audit of the company is not compulsory.
This company can start its business after getting the certificate of incorporation.
There is no restriction on company to call statutory meeting .
Minimum number of promoters is two.
For example, Tapal (Pvt.) Ltd. and HKB (Pvt.) Ltd. etc.

11. ACCORDINGTO OWNERSHIP
Govt. Company:
These companies are owned by Federal or Provincial Government.
The company's all or more than 50% shares are held by the government or the government has
power to nominate more than 50% of its directors.
This company may be registered as public or private.
The Govt. is also responsible for the profit & loss of the company. Punjab Seed Corporation .
etc.For example, Punjab Seed Corporation and Pakistan Television Cooperation etc.

12. ACCORDINGTO OWNERSHIP
Holding Company:
It is a company which holds more than 50% shares of another company.
The company may have the powers to appoint more than 50% of directors of another company.
 For example, Nishat Mills Limited is the holding company of Nishat Power Limited and PSO
is the holding company of PICIC growth fund in Pakistan.
Subsidiary Company:
It is company whose more than 50% shares are held by another company (Holding Company).
Its more than 50% directors may be selected by the holding company.
For example, Nishat Power Limited is the subsidiary company of Nishat Mills Limited and
PICIC growth fund is the subsidiary of PSO in Pakistan.

13. ACCORDING TO LIABILITY
Limited by Shares
It is a company which collects its capital by selling shares.
 The liability of shareholders is limited up to the value purchased shares.
 It may be public or private limited
.It is essential for such company to use the word end of its Name.
 Packages Limited, Lahore etc.

14. ACCORDING TO LIABILITY
Limited by Guarantee:
In this company, every member gives guarantee to contribute specified amount of money at the
time of winding up al company.
The liability of members is limited up to the guarantee amount.
It may be formed with or without share capital.
The main object of the company is not to earn profit.
The company uses the word "Guarantee Limited" with its name
For example, The Pakistan Mutual Insurance Company (Guarantee Limited) etc.

15. ACCORDING TO LIABILITY
Unlimited Company:
In this company, the liability of shareholders is unlimited
The private property of the members is also liable to pay company's debts
This company is established under section 15(20) companies Act.
The shares of this company can be transferred.
 For example, American Express Company USA etc.

16. ACCORDING TO LIABILITY
Association Not for Profit (U/S 42):
 In this organization, the word limited is not used with its name.
 It enjoys all the privileges of a limited company
It requires license from Federal Government for its formation as a company.
It is established to promote commerce, art, science or religious activities.
For example, Pakistan Institute of Corporate Governance, MKRF and Khushal Pakistan
Fund etc.

17. MODARABA COMPANY
This company is formed under Modaraba Companies Ordinance 1980 (Applicable w.e.f 26-06-
1980).
In this company, one party contributes capital whereas otherparty participates with his skill and
experience.
The contributor of capital is called "Rab-ul-Mal" and theperson who manages the business affairs is
called "Modarib".
The certificates of Modaraba company are transferable.
A Modaraba company may be for definite or indefinite period of time.
 The Modaraba may be multipurpose or specific.
For example, NBP Modarba and ABL Modaraba etc.

18. ACCORDING TO NATIONALITY
Pakistani Company:
It is a company which is formed and registered in Pakistan.
It may be public or private limited.
The people of Pakistan have right to receive all the benefits of the company.
 For example, Haleeb Food (Lhr.) and Kohinoor (Kchi.) etc.

19. ACCORDING TO NATIONALITY
Foreign Company:
It is company which is formed and registered outside the Pakistan.
The company's registered office is outside the Pakistan where as its branches are situated in our
country.
The foreign owners of the company receive all the profits of company.
It is essential for the company to submit its accounts and reports to Pakistani registrar.
For example, Uniliver and Nestle etc.

20. ThankYou