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Types of Companies in India For Business Registration

Nowadays, entrepreneurs are looking for various registration types of companies in India for their business formations that they can compete in the market. Different types of companies can be registered for starting your business in India. In this blog, we are going to discuss the various types of company registration in India. A company, according to the Indian Companies Act, 2013 is a company Incorporated under this law or below any prior company law. The Act prescribes the following Kinds of Organizations in India on a different basis.

Different types of companies in India or types of companies

Commonly known types of companies like, Private Company and Public company are described based on the number of members (shareholders). In any business, except OPC, the membership can be held by any person or just a body corporate. Even foreign nationals or NRI can participate as members of these companies.

Private Limited Company

For a Private Limited Company, the minimal number of members is two, which is extended to a maximum of 200 simultaneously. The said statutory limit must comply with all-time during the life of the company. It is registered with Ministry of Corporate Affairs (

One Person Company:

OPC Company is a kind of Private Company business registration, One Person Company is usually called OPC. OPC is significantly different from other kinds of businesses because of the number of its single person holding. In OPC, there’s only 1 member at any time during its existence. This member must be an individual and an Indian resident.

Public Company

In Public Company, there’s absolutely not any limitation regarding the maximum number of members. But, the minimum number of members is provided at least 7. There companies can list on stock exchanges. Such Companies can draw funds from pubic through Public Offers (IPO or FPO).

different types of companies based on Liability:

  1. Company Limited by Shares

In this type of company, the capital is introduced in the shape of Shares i.e. the capital of the business is divided into some percentage, called shares. The stocks are considered ownership of the shareholder in the company incorporation. The number of equity shares held measures the possession of the shareholder in the company incorporation.

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




Further, these types of companies in India can be registered as a private limited company, One Person Company or register as a public limited company too, according to the number of members and requirements.

  1. Company Limited by Guarantee:

The business registration may be either a private limited company or a public limited company, where the capital isn’t divided into shares. Here, the funds to be introduced with the members, are in the character of guarantee.

The subscriber to the Memorandum subscribes the amount guaranteed and places a signature against the total guaranteed. Our Online CA will help you in registering these types of companies. We have well-versed income tax consultants who have rich experience in such kind of registration at LegalPillers.

Here, the proportion of the ownership is based on the total guaranteed. Whenever the necessity of funds arises, the members present the funds to the organization. The liability of members is limited up to this amount of guarantee supplied only.

  1. Unlimited Company: 

In this business registration or company incorporation, the liability of the members isn’t limited. In the event of any debt arises, the liability of the members doesn’t limit their role in business, instead, it goes to their private assets also. In the present situation, this type of company in India isn’t being chosen to be registered by the entrepreneurs.

The liability of the members arises at the time of winding up or insolvency or otherwise, whenever the funds is to be increased or debt is to be paid. The most popular kind of business is Company limited by shares. The businesses can be further bifurcated in various types like a public or private business i.e. based on the character of the business. According to actions, it may be bifurcate into Charitable company(Section 8), Nidhi Company, etc..

Other Kinds of Firms:

1.Foreign Company:

As the name implies, a foreign company is owned by foreigners. A business registration where foreign participation in shareholding increases by more than 50%. company incorporation outside India find it most accessible way to set up business in India. Such businesses are enrolled as Indian Subsidiary of foreign company.

2. Section 8 Company

It is registered as a business under Section 8 of the Companies Act, 2013; hence, called Section 8 Company. It’s registered for charitable purposes and as a non-profit organization. Such a company enjoys a special status and particular exemption since it’s registered as Section 8 Company.

3. Producer Company(FPO)

A producer company is essentially a company registered to take care of the principal generation of its active member linked to farming. The major objective includes production to its exporting and selling also. Register a company in India become easy now, connect to our income tax consultant or online CA to get proper assistance over this kind of company incorporation or business registration, or knowing about types of companies in India at LegalPillers.

A producer company is registered with ten or more members being producer; or any two or more producer associations; or its mix. The liability of its members is limited to the extent of outstanding share capital by its own members.

4. Small Company

Small Company is a special status given to business registration.

A business is said to be a 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, according to profit and loss account for the immediately preceding financial year

Further, this doesn’t apply to any holding or subsidiary company; Section 8 company; or a business governed by any special Act.

Small Companies enjoy certain exemptions under the Companies Act, 2013 concerning compliance.

5. Subsidiary Company:

Referred to as a subsidiary, it’s a company in which other firm controls the composition of its Board of Directors or its more than 50 percent of voting powers. In the event, where 100% of voting powers are held by a single holding company, the subsidiary is called the Wholly Owned Subsidiary (WOS) of the holding.

6. Holding Company:

Holding company is a business having controlling power or the vast majority of voting powers of another company (subsidiary as mentioned previously). Holding company is also known as the parent company.

Above mentioned are some of the types of companies in India or business registration in India. For getting any kind of further information related to different types of companies or company incorporation or register a company in India, do connect to our income tax professionals or Online CA. SO that we can assist you in a proper way. Still have a query do call us at 9625279785 or 9267941961.

Ritesh Mishra

Hi, My name is Ritesh Mishra, a Practicing Advocate having several year experience in Business Consultancy, Secretarial Law, Intellectual Properly Law, Taxation, Business Modeling and other allied matters. I have been serving Small and Big Industries since several years. I have also been serving industry in various kind of licensing and liasoning works across India.

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