There are several companies have opened in India that are doing different business. In order to handle so many companies and to make rules for them, it becomes necessary for the law to first divide those companies according to their work. In this article, we are going to discuss about the types of companies in company law means we will discuss about the companies that are separated by the law as per their work.
define company
The company is an artificial person that has its own identity. The company has a common seal which is used by the people to approve any document in the company. All the people doing activities in the company are employees of the company (including owner of the company). Because the company has a distinct identity, every document contains information about the company. For example- Address, the owner of the company cannot give his address in the company document, he has to give the address of the place where the company is established.
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company act
Companies Act is a set of rules which are made by law for the smooth running of the business of companies in India. According to Companies Act, 1956 section 3(1)(i), we shall call all those things a company which has been registered in accordance with the Companies Act or any other previous law.
Till now three companies act have been passed:
- Company Act, 1956
- Company Act, 2013
- Company Act, 2015
kinds of company in company law
The law has divided companies into five parts on the basis of their functions.
- Incorporation
- liability
- control
- ownership
- National Interest
1) Incorporation
Incorporation refers to how the company was formed and came into existence. Companies that include under incorporation are:
a) Chartered- Chartered refers to companies that are formed by passing a document by a king or queen. For example- east India company. These types of companies are not found today and we do not even need to study them deeply.
b) Statutory- Statutory companies are those companies which were formed and came into existence after the passage of an Act/Law in the Parliament. For example- Reserve bank of India (RBI).
c) Registered- Registered companies are those companies which were formed and came into existence after being registered under the Companies Act, 1956 and any other previous law. For example- Reliance, Maruti, Tata.
2) Liability
liability means loans and debt that company raises to run the business smoothly and properly. Companies that include under liability are:
a) Unlimited liability company- Unlimited liability company is described under section (2)(92). This act states that the owner of the will has to pay off all the debts and loans of the company in case the company will be closed down by any means in the future.
b) Limited liability company- The limited liability company says that in case of closure of the company in any way in future, if the owner of the will is not able to repay all the debt, then no one can tell him anything. We can also divide limited liability company into two parts on the basis of law:
- Limited by Guarantee: In this, the owners and directors of the company decide in advance how much amount they will be liable for if the company is closed in future. The company will be responsible only for a specific amount at the time of winding up. For example- The company takes a loan of Rs 10 lakh from the bank and signs an agreement in advance with the bank that it will pay only Rs 5 lakh if the company is closed in future.
- Limited by shares: In this, the owners and directors of the company decide a share limit in advance that if a person is buying 100 shares of the company, then the company will pay an amount of 90 shares to the shareholder at the time of closure.
3) Control
In this, the owner of the company decides how much control they want to pass on to the investors. we can divide control in two parts as per law:
a) Holding- Holding company means to buy and acquire the company by another companies. Holding companies have high control in the company as they consider as the owner of the company. Any company can take over another company in three ways:
- The company should hold 51% of the shares
- Board of directors to have extra control over the company
- All the companies under the main company will go to the buying company.
b) Subsidiary- Subsidiary means the company purchased by holding company. In Subsidiary company people have less control over the company.
4) Ownership
As the name suggests ownership means who is owner of the company. we can divide ownership in two parts as per law:
a) Government- These are those companies in which ownership will be in government’s hand weather it is center govt and state government. For example- Railways, Public banks.
b) Non-Government- Non-Government are those companies in which government is not the owner and the company will be run by other normal people and board of directors. For example- Reliance, Infosys.
5) National Interest
National Interest means what is the original country of the company. we can divide National Interest in two parts as per law:
a) Indian- Indian companies means those companies that are registered as per Indian Act and belongs from India. For example- Tata, SBI.
b) Foreign- Foreign companies are those companies that are from a country other than India and come to India to do their business. For example- Dominos, Pizza hut.
health tips for the day
In today’s era, everyone is facing some or the other problem in their body, due to many things like pollution, eating junk food, not taking proper care of the body. Not only elders but children are also facing problem in their body. You need a healthy body to run your daily work smoothly. To keep your body healthy, you have to take good care of it. You can adopt the following methods to take good care of your body:
1) Give proper care to your body in any condition
Always we have seen that whenever a person is alone at home he never takes care of his body properly, for example, not eating properly. Apart from this, if there is any function in someone’s house, then even the members of that house are not able to take care of their body properly. They don’t sleep well at night and don’t even eat properly. If such a situation ever happens in your home, then you have to take more care of your body because in such a situation you will work more and your body will need more care. If you do not take care of your body then your body will feel sluggish and you will not be able to do your work on time.
2) Always be updated with new health tips
There are many websites and magazines where you can find new health tips to take proper care of yourself. This thing will help you to know the different ways to keep your body healthy and what is good and what is bad for your body. New health tips are always based on how the current era is doing. For example- In today’s era, many people are working in companies, so they do not have time to give enough time to their body, in such a situation the health tip will be of less time and will give you full benefit.
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3) Control your eating
Eating outside junk food and hotel food has become very common in the world instead of home cooking because people do not like their home food. This thing is very bad for children and they overdo it. When children do not like their home cooked food they get food of their choice from outside and their parents allow them because they think it is okay that their child is eating something and is not hungry anymore. This is sometimes acceptable but if your child repeats the same thing all the time then you should stop him as it is leaving a dangerous effect on your child’s body.
It is okay not to eat anything throughout the day, but it is not good to eat outside food because they are the main root of causing problems in your body. You must have heard that no one can take back his spoken words, it is the same with food, no one can take back the effect of outside food from our body if once you have eaten it. You can eat junk food sometimes but always eating junk food can be harmful for your body because people use those ingredients in food which enhance the taste of food but are very harmful for our body like- Ajinomoto.
4) Stop using electronic gadgets all the time
Using electronic gadgets all the time can make your mind numb and give you a headache. You must have noticed that when you use electronic gadgets like mobiles and laptops for more than an hour, your brain starts hurting and when you do other things in your home, you do that without thinking and make many mistakes in that.
Most of the people use electronic gadgets for their entertainment and this thing delays the important work of their day because people are more attached to that thing which entertains their mind a lot. But you have to leave this thing so that your mind will come again in proper state and you can realize the power of your mind properly.
5) Meet the minimum requirements of your body
We all know what are the basic requirements for our body to function properly as we have heard from our parents and elders for example always drinking 8-10 glasses of water and getting at least 8 hours of sleep at night. We also know that if we do not sleep properly and do not drink the right amount of water, then what problems we may face in our body, but despite knowing everything, we do not follow them properly. . People keep watching mobile till late night and this thing does not let them sleep properly.
At least you should meet the minimum requirement of your body so that your body can function properly. You must understand how important your body is to you because without it you cannot do anything.