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Consult with an Expert

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What are the diffrent types of Companies?

Types of companies

  • Private Limited Company

  • One person Company

  • Public Company

  • Foreign Company

  • Section 8

  • Small Company

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Types of Companies based on Number of Members:

1. Private Company:

For a Private Limited Company, the minimum number of members is 2, which can be extended to a maximum of 200  The said statutory limit is required to be complied with at all times. To know how to incorporate your own company, follow this guide 

2. One Person Company:

A type of Private Company itself, One Person Company is commonly known as OPC. The only difference is that OPC allows for only having one member . The compliance requirements for an OPC are much lesser than that of a Private Company. The member must be an individual and an Indian resident.

3. Public Company:

In a Public Company, there is no limit as to the maximum number of members. However, a minimum number of members is provided. A public company is registered with a minimum of 7 members. The benefit of having structuring your company as a Public limited is that the company can be listed on the stock exchange and raise funds from the Public.

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How to register a company
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Register your private limited Company @ Rs 999
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Why registe a Company?

Types of Companies based on Liability:

1. Company Limited by shares:

In this form of Company, the capital is introduced in the form of Shares i.e. the capital of the company is divided into a small portion, known as shares. The shares are considered the interest of the shareholder in the company. The percentage of equity shares held measures the ownership of the shareholder in the company.

If their requirement for capital arises in the company, the shares can be issued for subscription by shareholders. In this type of company, the liability of the members is limited up to the unpaid capital on the shares subscribed.

Further, this form of company can be registered as private limited company, One Person Company or register as a public limited company also, based on number of members and nature.

2. Company Limited by Guarantee:

The company can be either a private limited company or a public limited company also, where the capital is not divided into shares. Here, the capital to be introduced by the members, are in nature of a guarantee.

The subscriber to the Memorandum subscribes to the amount guaranteed , in doing so he guarantees to pay the unpaid amount.

Here, the percentage of the ownership is based on the amount guaranteed. Whenever the requirement of capital arises, the members introduce the capital to the company. The liability of members is limited up to the amount of guarantee provided only.

These companies can also issue shares, where the shareholders are also liable up to the amount unpaid on the shares as discussed above. However, the shareholding is not criteria for deciding the ownership

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Other Types of Company:

1. Foreign Company:

As the name suggests, foreign company is owned by foreigners. An entity is registered as a foreign company when foreign participation in shareholding increases above 50%. Businesses registered outside India find it the most accessible way to set up a business in India. 

2. Section 8 Company:

It is registered as company under Section 8 of the Companies Act; hence, known as Section 8 Company. It is registered for charitable purpose and as non-profit organisation. Such company enjoys special status and certain exemption as it is registered as Section 8 Company. Let me bring this to your attention that for Section 8 Company Registration, special approval from respective authorities is required.

3. Small Company:

Small Company is a special status given to registered companies. You are not required to incorporate a new company, but it is a status it derives because of its financial and other positions.

A company is said to be small company, if it follows below mentioned conditions:

  • Not a Public Company

  • Paid-up share capital:  Not exceeding fifty lakh rupees

  • Turnover: Not exceeding two crore rupees, as per profit and loss account for the immediately preceding financial year

Further, this does not apply to any holding or subsidiary company; Section 8 company; or a company governed by any special Act.

Small Companies enjoy certain exemptions under Companies Act, 2013 in terms of compliance

What documents will you need?
doc req
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From Annual fillings to Bookkeeping
all compliance taken care of 
@ only Rs 999 p/m 

The Private Limited Company Registration process is completely online, so you don't even have to leave your home to get your entity registered. At Register Karo, we complete the Company Registration online within 14 days.​

​Register Karo Company Registration package includes:

  • DIN and DSC for two Directors

  • Drafting of MoA & AoA

  • Registration fees and stamp duty

  • Company Incorporation Certificate

  • Company PAN and TAN

  • FREE Compliance and Bookkeeping for the first 3 months

How can we help in Registering your Company in India?

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There was hesitation at first about registering my company online, but Alok(my business expert) handled all my queries on priority. Highly recommend them to all my fellow entrepreneurs

—  Jerrin Thomas

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