{"id":866,"date":"2021-01-04T06:39:14","date_gmt":"2021-01-04T06:39:14","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=866"},"modified":"2023-03-17T11:13:44","modified_gmt":"2023-03-17T11:13:44","slug":"types-of-companies-under-companies-act-2013","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/","title":{"rendered":"Types of Companies Under Companies Act 2013: A Complete Guide"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In India, there are\nvarious types of companies existing in the market, right from the public and\nprivate companies to investment and limited liability companies. Further, these\nentities might look different from each other but are based upon certain\ndistinguishable common features and can be grouped into below mentioned\nclasses. In this blog, we will discuss the concept and types of companies under\nthe Companies Act 2013.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2c98c17fb80\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2c98c17fb80\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Concept_of_Company\" title=\"Concept of Company\">Concept of Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Different_Types_of_Companies_under_Companies_Act_2013\" title=\"Different Types of Companies under Companies Act 2013\">Different Types of Companies under Companies Act 2013<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Types_of_Companies_Based_on_Incorporation\" title=\"Types of Companies Based on Incorporation\">Types of Companies Based on Incorporation<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Statutory_Companies\" title=\"Statutory Companies\">Statutory Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Registered_Companies\" title=\"Registered Companies \">Registered Companies <\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Types_of_Companies_Based_on_Liability\" title=\"Types of Companies Based on Liability\">Types of Companies Based on Liability<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Companies_Limited_by_Shares\" title=\"Companies Limited by Shares\">Companies Limited by Shares<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Companies_Limited_by_Guarantees\" title=\"Companies Limited by Guarantees\">Companies Limited by Guarantees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Unlimited_Liability_Companies\" title=\"Unlimited Liability Companies \">Unlimited Liability Companies <\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Types_of_Companies_Based_on_Number_of_Members_of_Company\" title=\"Types of Companies Based on Number of Members of Company\">Types of Companies Based on Number of Members of Company<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Public_Limited_Company\" title=\"Public Limited Company\">Public Limited Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Private_Limited_Company\" title=\"Private Limited Company\">Private Limited Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#One_Person_Company\" title=\"One Person Company\">One Person Company<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Types_of_Companies_Based_on_Domicile\" title=\"Types of Companies Based on Domicile\">Types of Companies Based on Domicile<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Foreign_Company\" title=\"Foreign Company\">Foreign Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Indian_Company\" title=\"Indian Company\">Indian Company<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Types_of_Companies_Based_on_Miscellaneous_Factors\" title=\"Types of Companies Based on Miscellaneous Factors\">Types of Companies Based on Miscellaneous Factors<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Section_8_Company\" title=\"Section 8 Company\">Section 8 Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Government_Company\" title=\"Government Company\">Government Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Small_Company\" title=\"Small Company\">Small Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Subsidiary_Company\" title=\"Subsidiary Company\">Subsidiary Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Holding_Company\" title=\"Holding Company\">Holding Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Associate_Company\" title=\"Associate Company\">Associate Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Producer_Company\" title=\"Producer Company\">Producer Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Dormant_Company\" title=\"Dormant Company\">Dormant Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Investment_Company\" title=\"Investment Company\">Investment Company<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-companies-under-companies-act-2013\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Company\"><\/span>Concept of Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to section 2(20) of the <strong>Companies Act 2013<\/strong>, the term \u201ccompany\u201d denotes a company incorporated either under this Act or under any other previous company law.<\/p>\n\n\n\n<p>Further, in a common manner, a company may be described as an incorporated association, which is an artificial person, having its own separate legal entity, with the features like perpetual succession, common seal, and a common capital made of transferable shares and limited liability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_Types_of_Companies_under_Companies_Act_2013\"><\/span>Different Types of Companies under Companies Act 2013<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The different types of companies under <strong>Companies Act 2013<sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\" class=\"text-primary\"><strong><em>[1]<\/em><\/strong><\/a><\/sup><\/strong> are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Companies_Based_on_Incorporation\"><\/span>Types of Companies Based on Incorporation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The different types of companies under Companies Act 2013, based on Incorporation, are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Incorporation-heading.png\" alt=\"Companies Based on Incorporation\" class=\"wp-image-875\" width=\"641\" height=\"281\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Incorporation-heading.png 985w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Incorporation-heading-300x132.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Incorporation-heading-768x338.png 768w\" sizes=\"(max-width: 641px) 100vw, 641px\" \/><\/figure><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Statutory_Companies\"><\/span>Statutory Companies<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term \u201cStatutory Companies\u201d denotes\nthe companies that are constituted either by a special Act of Parliament or by State\nLegislature. Further, these companies are formed majorly with an intention to\noffer public services.<\/p>\n\n\n\n<p>Also, it shall be relevant to note that\nalthough these type of companies are primarily governed under the provisions of\nthat Special Act, still the provisions of the Companies Act 2013 will be\napplicable to them, except in the case where the said provisions are\ncontradictory with the provisions of the relevant act.<\/p>\n\n\n\n<p>For Example: Life Insurance Corporation of India and Reserve Bank of India<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Registered_Companies\"><\/span>Registered Companies <span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The companies\nthat are registered under the Companies Act 2013 or under any other previous\nCompany Law are known as Registered Companies.<\/p>\n\n\n\n<p>However,\nsuch companies come into existence only when they are registered under the provisions\nof the Companies Act and have acquired a Certificate of Incorporation granted by\nthe Registrar.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Companies_Based_on_Liability\"><\/span>Types of Companies Based on Liability<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The different types of companies under Companies Act 2013, based on Liability, are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Liability-heading.png\" alt=\"Companies Based on Liability\" class=\"wp-image-873\" width=\"496\" height=\"465\"\/><\/figure><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Companies_Limited_by_Shares\"><\/span>Companies Limited by Shares<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>A company in which the liability of the\nmembers is limited to the extent of the amount specified in the Memorandum of\nAssociation is termed as Company Limited by Shares.<\/p>\n\n\n\n<p>Further, it shall be relevant to note\nthat the concerned company can enforce liability both during the existence and\nwinding up of the company. Also, if the shares held by a member are fully paid,\nthen, in that case, no further liability rests on them.<\/p>\n\n\n\n<p>For Example: a shareholder who has paid Rs 75 on a share of a face value of Rs 100 can be called upon to pay the remaining amount of Rs 25 only. <\/p>\n\n\n\n<p>Moreover, the companies that are limited\nby shares are so far the most common form of business entity. Also, the same\ncan either be public or private.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Companies_Limited_by_Guarantees\"><\/span>Companies Limited by Guarantees<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term \u201ccompany limited by guarantee\u201d\nmeans a company in which the liability of the members is limited to the extent\nof guarantee undertaken by them. <\/p>\n\n\n\n<p>Therefore, the members of such a company are employed in the position of guarantors of the company\u2019s debts up to the extent of the agreed amount.<\/p>\n\n\n\n<p>For Example Clubs, Trade Associations, Societies, Research Associations, who are working for promoting several objects are the example of guarantee companies.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Unlimited_Liability_Companies\"><\/span>Unlimited Liability Companies <span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>A\ncompany that is not having any limit on the liability of its shareholders or\nmembers is known as an unlimited company. Further, in this case, the members\nare liable for undertaking the company\u2019s debts in proportion to their individual\ninterests, and their liability is unlimited.<\/p>\n\n\n\n<p>Also, such companies may or may not have share capital and can be either a private limited company or a <strong><a href=\"https:\/\/swaritadvisors.com\/public-limited-company-registration\" class=\"text-primary\">public limited company<\/a><\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Companies_Based_on_Number_of_Members_of_Company\"><\/span>Types of Companies Based on Number of Members of Company<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The different types of companies under Companies Act 2013, based on the Number of Members, are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Number-of-Members-of-Company.png\" alt=\" Based on Number of Members\" class=\"wp-image-872\" width=\"543\" height=\"468\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Number-of-Members-of-Company.png 900w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Number-of-Members-of-Company-300x259.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Number-of-Members-of-Company-768x663.png 768w\" sizes=\"(max-width: 543px) 100vw, 543px\" \/><\/figure><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Public_Limited_Company\"><\/span>Public Limited Company<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term public limited company is\ndefined under the provisions of section 2 (71) of the Companies Act 2013 as a\ncompany that is not a private company. Further, the main essence of a public\nlimited company is that its shares and debentures are transferable in nature and\nare capable of being listed on the recognised stock exchange.<\/p>\n\n\n\n<p>Also, a private limited company that is\nsubsidiary to a public company will be termed as a public limited company only.<\/p>\n\n\n\n<p>Moreover, as per the Companies (Amendment) Act 2015, now there is no need to have any minimum amount for obtaining Public Limited Company Registration.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Private_Limited_Company\"><\/span>Private Limited Company<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term <strong><a href=\"https:\/\/swaritadvisors.com\/private-limited-company-registration\" class=\"text-primary\">Private limited company<\/a><\/strong> is defined under the provisions of section 2 (68) of the Companies Act 2013 as a company that is not able to transfer its shares and cannot have more than 200 members. Further, this business format prohibits the company from inviting the general public to subscribe to shares and securities. <\/p>\n\n\n\n<p>Also, a private company needs a minimum\nof 2 directors and must add the suffix \u201cPrivate Ltd\u201d at the end of its name.<\/p>\n\n\n\n<p>Moreover, as per the Companies (Amendment) Act 2015, now there is no need to have any minimum amount for obtaining Private Limited Company Registration.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"One_Person_Company\"><\/span>One Person Company<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>With the enforcement of the Companies Act 2013, various new concepts, such as <strong><a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/one-person-company-registration\">One Person Company<\/a><\/strong> as a business format, were introduced, which were not there earlier in the Companies Act 1956. Further, theses kind of amendments has completely transformed the Indian Corporate Laws.<\/p>\n\n\n\n<p>Further, the main aim behind the\nimplementation of the concept of One Person Company or OPC was to provide an\navenue for commencing a business with ease, flexibility, and limited liability,\nthat partnership firms and sole proprietorship firms do not offer.<\/p>\n\n\n\n<p>Some of the unique features of One\nPerson Company are as follows:<\/p>\n\n\n\n<ol><li>It\nrequires only one person as its member;<\/li><li>It\nneeds only one person as its director;<\/li><li>One\nof the unique features of an OPC as a business format that separates it from\nother types of companies under the Companies Act 2013 is that the sole member\nof the company needs to mention a nominee while incorporating the company. The\nreason behind the same is that since there is only one shareholder or member in\nan OPC, so after his\/ her death, the person nominated will become the next sole\nmember. However, it shall be pertinent to note that thesame does not happen in\nother business formats as they follow the notion of perpetual succession.<\/li><\/ol>\n\n\n\n<p>Also, one of the main advantages of the\nOne Person Company Registration is that it includes fewer compliances but\nprovides greater credibility.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Companies_Based_on_Domicile\"><\/span>Types of Companies Based on Domicile<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The different types of companies under Companies Act 2013, based on Domicile are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Domicile-heading.png\" alt=\"Companies Based on Domicile\" class=\"wp-image-876\" width=\"625\" height=\"287\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Domicile-heading.png 900w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Domicile-heading-300x138.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Domicile-heading-768x353.png 768w\" sizes=\"(max-width: 625px) 100vw, 625px\" \/><\/figure><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Foreign_Company\"><\/span>Foreign Company<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term Foreign Company is defined\nunder section 2 (42) of the Companies Act 2013 as the company or body corporate\nthat is incorporated or formed outside India. Further, in a laymen\u2019s sense, a\nforeign company is a business format that has a place of business outside\nIndia.<\/p>\n\n\n\n<p>Also, section 379 to section 393 of the\nCompanies Act 2013 deals with the provisions applicable to a Foreign Company.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Indian_Company\"><\/span>Indian Company<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term Indian Company is defined under\nsection 2 (20) of the Companies Act 2013 as any company incorporated under the provisions\nof the Companies Act 2013 or under any other previous corporate law. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Companies_Based_on_Miscellaneous_Factors\"><\/span>Types of Companies Based on Miscellaneous Factors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The different types of companies under Companies Act 2013, based on Miscellaneous Factors, are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Miscellaneous-Factors.png\" alt=\"Companies Based on Miscellaneous Factors\" class=\"wp-image-874\" width=\"542\" height=\"538\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Miscellaneous-Factors.png 921w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Miscellaneous-Factors-150x150.png 150w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Miscellaneous-Factors-300x298.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Companies-Based-on-Miscellaneous-Factors-768x764.png 768w\" sizes=\"(max-width: 542px) 100vw, 542px\" \/><\/figure><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_8_Company\"><\/span>Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term <strong><a href=\"https:\/\/swaritadvisors.com\/section-8-company-registration\" class=\"text-primary\">Section 8 Company<\/a><\/strong> denotes a company or a business entity that is incorporated under the provisions of section 8 of the Companies Act 2013. Also, such a company holds a valid license from the Central Government and works on the objectives as follows:<\/p>\n\n\n\n<ol><li>To\npromote commerce, art, sports, science, social welfare, education, research,\nreligion, protection of the environment, charity, or any such other object;<\/li><li>To\napply its profits, if in case any, or any other income generated for promoting\nits objects; and<\/li><li>To\nrestrict the payment of dividend to its members;<\/li><\/ol>\n\n\n\n<p>Further, the main benefit of section 8\ncompany registration is that it provides various tax benefits and exemptions\noffered by the government.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Government_Company\"><\/span>Government Company<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term Government Company is defined\nunder the provisions of section 2 (45) of the Companies Act 2013, as the company\nor entity in which the shareholding of not less than 51% is held either by the\nCentral Government, any State Government, or partly by one or more State\nGovernment and partly by the Central Government.<\/p>\n\n\n\n<p>Further, these companies enjoy several\nexemptions and privileges offered under the provisions of the Companies Act\n2013.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Small_Company\"><\/span>Small Company<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term Small Company is defined under section 2 (85) of the Companies Act 2013. It means a company other than a public limited company. Further, the paid-up capital and an annual turnover of the company must not be more than Rs 50 Lakhs and Rs 2 Crores, respectively.<\/p>\n\n\n\n<p>However, it shall be relevant to note\nthat no clause of a small company shall apply to the entities as follows:<\/p>\n\n\n\n<ol><li>Holding\nCompany;<\/li><li>Subsidiary\nCompany;<\/li><li>A\ncompany incorporated under section 8 of the Companies Act 2013;<\/li><li>A\ncompany or a body corporate governed or administered by any special act;<\/li><\/ol>\n\n\n\n<p>Also, it shall be considerate to note\nthat a small company enjoys all the benefits and exemptions provided under the provisions\nof the Companies Act.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Subsidiary_Company\"><\/span>Subsidiary Company<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term subsidiary company denotes a\nbusiness format that is incorporated under the provisions of section 2 (87) of\nthe Companies Act 2013, as the company that is subsidiary to a holding company.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Holding_Company\"><\/span>Holding Company<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term holding company means a company\nthat is incorporated under the provisions of section 2 (46) of the Companies\nAct 2013. Further, in a laymen\u2019s sense, the term holding company means a\ncompany to which other companies are subsidiary companies.<\/p>\n\n\n\n<p>Moreover, the term holding includes the\nfollowing:<\/p>\n\n\n\n<ol><li>The\ncompany or entity that controls the composition of BOD (Board of Directors);<\/li><li>The\ncompany that controls or exercises controls on more than one half of the total\nvoting power either on its own or in association with more than one of its\nsubsidiary companies:<\/li><\/ol>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Associate_Company\"><\/span>Associate Company<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term Associate Company is defined under section 2 (6) of the Companies Act 2013 as a company in which some other company has a substantial influence, however, the same is not termed as a subsidiary company. Further, the concept of Associate Company includes Joint Venture Company as well.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Producer_Company\"><\/span>Producer Company<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term Producer Company means a\nlegally recognised body of agriculturists and farmers that aim to provide the\nfollowing:<\/p>\n\n\n\n<ol><li>Ensure\nGood Status to Members;<\/li><li>Provide\nSupport, Income, and Profitability to Members;<\/li><li>Improve\nthe Standard of Living for Members;<\/li><\/ol>\n\n\n\n<p>Moreover, for obtaining the Producer\nCompany Registration, one needs to apply under section 465(1) of the Companies\nAct 2013. Also, all the members of a producer company must compulsorily be a primary\nproducer in nature.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dormant_Company\"><\/span>Dormant Company<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term Dormant Company means a company\nthat is formed and incorporated under the provisions of section 455 of the\nCompanies Act 2013 for some future project or to hold some property and asset,\nand the same has no significant accounting transaction. Therefore, the members\nof such an inactive or dormant company will furnish an application to the\nRegistrar for declaring that company as dormant.<\/p>\n\n\n\n<p>After being satisfied with the\napplication filed, the registrar will allow the status of dormant and will\nissue a certificate regarding the same.<\/p>\n\n\n\n<p>Also, in the case where the company has\nnot furnished its annual return for a period of two years, then, in that case,\nthe same will be declared as dormant by the registrar.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Investment_Company\"><\/span>Investment Company<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term Investment Company is defined\nunder section 186 of the Companies Act 2013 as the company that has a\nfundamental transaction or business pertaining to securities offered by such an\nentity. Further, the term securities mean the shares, debentures, or any other\nsecurity offered by such a company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, the different types of\ncompanies under the Companies Act 2013 are based on several factors, such as\nIndependence, Financial Conduct, Liability, Domicile, etc. Further, there are\nchances that the companies might have two or more of the features mentioned\nabove. <\/p>\n\n\n\n<p>Furthermore, in case of any other doubt or dilemma, reach out to Swarit Advisors, our corporate experts are always there to provide a solution to your doubt and confusion.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/start-a-retail-shop-in-india\/\">Start a Retail Shop in India: Factors &amp; Licenses to Consider<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In India, there are various types of companies existing in the market, right from the public and private companies to investment and limited liability companies. Further, these entities might look different from each other but are based upon certain distinguishable common features and can be grouped into below mentioned classes. In this blog, we will [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":871,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[6],"tags":[139],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/866"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=866"}],"version-history":[{"count":11,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/866\/revisions"}],"predecessor-version":[{"id":12671,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/866\/revisions\/12671"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/871"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=866"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=866"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=866"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}