types of companies
on the basis of incorporation
on the basis of liability
on the basis of nationality

Dear Student
Types of companies :
1. On the basis of incorporation-
 (a) Charter company- Companies that are formed by some special order of King or Queen for example East India Company. Such types of company not exist in India after independence.
 (b) Statutory company - Company that is formed under a special act. For example Reserve Bank of India
 (c) Registered Company - Company registered under Company Act 1956.

2. On the basis of Liability -
(a) Company limited by shares - A company where liability of its member is limited to the face value of its shares.
 (b) Company limited by Guarantee- The liability of the person is exist till the amount he/ she agree to contribute for the assets of the company.
(c) Unlimited liability - In this type of company the liability of members is unlimited or extends to its personal property.

3. On the basis of Nationality-
 (a) Indian company - Company that is incorporated in India.
 (b) Foreign company - Company that is not incorporated in India but carries its business in India.
 (c) Multinational Company - A company that is operated in many other countries through franchises, branches or joint ventures.


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