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Type of Companies

  1. Private Limited Company – S. 2(68)

“Private company” means a company having a minimum paid-up share capital as may be prescribed, and which by its articles,

  1. Restricts the right to transfer its shares;
  2. Except in case of One Person Company, limits the number of its members to two hundred:

Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member:

  1. Prohibits any invitation to the public to subscribe for any securities of the company.
  1. Public Company – S. 2(71)

“Public company” means a company which—

  1. Is not a private company;
  2. Has a minimum paid-up share capital as may be prescribed:

Provided that a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles.

REQUIREMENT OF minimum paid-up share capital is not applicable to Section 8 Company.

  1. One Person Company – S. 2(62) “One Person Company” means a company which has only one person as a member;
  2. Small Companies – S. 2 (86) “Small companies”means a company other than public company
    1. Paid-up capital is less than ₹50 lakhs or higher amount as may be prescribed which shall not be more than ₹5 crore; or
    2. Turnover of which is less than ₹2 crore as per its last profit & loss account or higher amount as may be prescribed which shall not be more than ₹20 crore;

Following companies shall not be small companies:

Holding company or a subsidiary company;

Company registered under section 8; or

Company or body corporate governed by any special Act.

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