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Company Incorporation

1. Company Limited by Shares

• This is the most common type of Private Limited Company.

• Liability of members is limited to the amount unpaid on their shares.

• The ownership is determined by the number of shares held by individuals or entities.

2. Company Limited by Guarantee

• The liability of members is limited to the amount they agree to contribute in the event of winding up.

• Often used by non-profit organizations, clubs, or associations.

3. Unlimited Company

• Members have unlimited liability, meaning their personal assets can be used to meet the company's obligations.

• Uncommon due to the higher level of risk for members.

4. One Person Company (OPC)

• Introduced to support entrepreneurs who want to start a company without a partner.

• It allows a single person to form a company, acting as both the director and shareholder.

5. Small Company

• A company that meets certain criteria regarding paid-up capital and turnover can be classified as a small company.

• Enjoys certain exemptions and benefits under the Companies Act, 2013.

6. Producer Company

• Formed by farmers, producers, or individuals involved in the production, marketing, or processing of agricultural products.

• Aims to improve the income and quality of life of its members.

7. Foreign Company

• A company incorporated outside India but operating within the country is considered a foreign company.

• Must adhere to certain regulations and file financial statements with the Ministry of Corporate Affairs.

8. Subsidiary Company

• A company that is controlled by another company, known as the parent company.

• The majority of the shares and voting rights are held by the parent company.

9. Holding Company

• A company that controls other companies, known as subsidiaries.

• Holds the majority of voting rights in subsidiary companies.

10. Section 8 Company (Non-Profit Company)

• Formed for promoting art, commerce, science, sports, education, research, social welfare, religion, charity, protection of the environment, or other similar objectives.

• Profits, if any, are used for promoting the company's objectives.

11. Start-up Company

• A company that is recognized as a start-up by the Department of Industrial Policy and Promotion (DPIIT) and fulfills the criteria laid down by the government.

Each type of Private Limited Company has its own set of characteristics, advantages, and compliance requirements. The choice of the type of company depends on the nature of the business, its objectives, and the preferences of the promoters. It is advisable to seek professional advice before deciding on the type of Private Limited Company to establish.


Name Reservation.

Legal structure Guidance.

Document Prepration.

Registration with Regularity Authorities.