A company is an artificial person created by law. It is a voluntary association of individuals for profits.

According to Section 3(1)(i) of the Companies Act, a company means, A company formed and registered under this Act or an existing company.

 Incorporated Companies: These are the

association of persons who contribute money to a common stock known as capital of the company. They have existence independent of its members.

Unincorporated Companies: These are the

mere collection of persons who have agreed to join in partnership to run a business and share the profits.

 Chartered Companies: The rown! in the

exercise of the royal prerogative has power to create a corporation by the grant of a charter to persons assenting to be incorporated. "uch companies or corporations are known as chartered companies. incorporated by means of a special Act of the #arliament or any "tate $egislature. "uch ompanies are called statutory companies. "uch companies are generally formed to carry out some special public undertakings% e.g.% railways% waterways% gas% electric generation etc. They are governed by the Acts creating them.

Statutory Companies: A company may be

 Registered Companies: ompanies registered

under the ompanies Act%&'()% or the earlier ompanies Acts are called registered companies. "uch companies come into existence when they are registered under the ompanies Act and a ertificate of Incorporation is granted to them by the *egistrar.

A company registered under the Act may be: i. Companies limited by shares: In a company

limited by shares the liability of the members is limited by the memorandum to the amount% if any% unpaid on the shares respectively held by them.

 ii. Companies limited by guarantee: It is a

registered company public or private% in which the liability of members is limited to such amounts as they may respectively undertake by the memorandum to contribute to the assets of the company in the events of its being wound up. iii. Unlimited Companies: A company not having any limit on the liability of its members is termed as unlimited company.

 Private company: According to "ection +,&-,iii- of

the ompanies ,Amendment-Act%.///% a private company means a company which: ,a- has a minimum paid up capital of one lakh rupees or such higher amount as may be prescribed by the 0overnment1 ,b- has a minimum of . and maximum of members excluding employees1 ,c- restricts the right of members to transfer its shares % if any1 ,d- prohibits any invitation to the general public to subscribe for its shares or debentures1 ,e- does not invite the public to subscribe to its deposits. 2.g.:3 Ambika Industries #vt. $td.% #aras #harmaceutical #vt. $td. etc.

 Public Company: According to "ection +,&-

,iv- of the ompanies ,Amendment-Act%.///% a public company means a company which: ,a- is not a private company1 and ,b- has a minimum paid up capital of five lakh rupees or such higher amount as may be prescribed by the 0overnment.
E.g.:-*eliance Industries $td.% Tata Iron 4

"teel o. $td.% 5. .6. $td.% etc.

 7esides all these companies there are few

more kinds of ompanies: Government Companies: It is a company of which (&8 or more e9uity share capital is held by the 0overnment. *est of the shares can be held by private individuals or businessmen. oreign Companies: It is incorporated outside India but has a place of business in India. "ome of the popular 6: s operating in India are oca ola,;"A-% #epsi ola,;"A-% "ony,<apan-%etc.

Regulating Act
PARTNERSHIP FIRM
Indian #artnership

COMPANY

ompanies Act% &'()

Act%&'+.

Number of Members
PARTNERSHIP FIRM
6inimum3. 6aximum3./ in ordinary

COMPANY
#rivate ompany: 6inimum3.% 6aximum3(/ #ublic ompany: 6inimum3=% 6aximum3

business and &/ in banking business

:o. of shares divided by the lot of minimum number of shares

Separate Entity
PARTNERSHIP FIRM COMPANY

:o separate legal entity

"eparate legal entity

from that of its partners.

from that of its members.

Liability
PARTNERSHIP FIRM COMPANY

;nlimited

$imited

Management
PARTNERSHIP FIRM
All partners are entitled

COMPANY
>nly members of the

to participate.

7oard of 5irectors are entitled to manage.

Transfer of Interest
PARTNERSHIP FIRM
:ot possible without the

COMPANY
?reely transferable

consent of all the partners.

except in case of private company.

Financial Resources
PARTNERSHIP FIRM

COMPANY

an raise limited resources.

an raise large financial resources.

Winding up
PARTNERSHIP FIRM

COMPANY

an be dissolved at will without any legal formalities

annot be wound up at will. @inding up regulated as per provisions of the ompanies Act.

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