What is company?

 What is the company?


 There are many popular concepts about the company. In which the most popular argument regarding the word company is that it originated from two Latin words in which com means together and pan means bread. In the beginning, a  company meant a

It was from Sandha, who used to eat his food sitting together in the middle of business. And at that time used to discuss his business. But in modern times company means a community that is carrying on any business by investing joint capital, which has been registered in the Companies Act 1956 in any such earlier Act. Whose registration is done as a person under the Companies Act?  What is the company?

According to Judge James -: Hope from a company is a community of many persons formed for a common purpose.

According to Judge Lindley, - A company is an association of persons who raise capital for the attainment of a common object.

According to L-H-Hayne "A company is an artificial legal entity created out of legislation, having a separate existence, having perpetual succession, and having a common currency.

According to Section 2(20) of the Companies Act, 2013-   a company means a company has been amalgamated or incorporated under this Act or any previous Companies Act.

characteristic of a public company

Some of the features of the company are as follows

1 artificial person

2 Perpetual statutory existence

3 Limited Liability

4Common Seal

5 share capital

6 Isolated Existence

 7 Transfer of  Shares

 8 Number of  members

9 More of having separate property

10 Right to Prosecute

11 Determination of work limits

12 Voluntary Alliance for Profit

These characteristics are understood as follows

1 Artificial person made by means 

    The company gets many such rights that are available only to any citizen. But the company works as an institution that is created through a legal process. Because it has been created according to the act, it is called an artificial person made by law.

2 Perpetual statutory existence

the perpetual mortal existence of companies means their permanent existence. Even if all the members of the company are destroyed, the company will not be destroyed. It is born under the law. For dissolution, also legal process has to be done.

3 Limited Liability,-:

 The liability of each member of the company is limited to the value of the shares held by them. That is, if a shareholder has taken a share of ₹ 100, then the company can be asked to pay ₹ 100 only.

4 Common Seal

The company has its own seal i.e. the seal through which the representatives of the company enter into the contract. The company is born according to the Act. If the representatives of the company enter into a business contract in any way, then they will have to put a common health contract paper. The name of the company, address,e ss, etc. is written on the common seal.

5 share capital

The capital of the company is divided into small parts. What we call share capital.

For example, the total capital of the company is 100000. If the company is to be divided into 1000 shares, then the value of one share will be 100. Hence the share capital of the company is divided into 1000 shares of Rs 100 each.

6 Separate Existence-:

 The company has a separate existence from its shareholders, it has the right to keep the property in its name and to make a contract, the company can do all the work that it should do for business operations as an individual.

A company is said to be a legal person.

 7 Transfer of  shares

: There is no restriction on the transfer of shares. Full freedom is given to the shareholders to sell the shares.

 8 Number of  members -:

In any public company, there should be at least 7 members and there is no limit on the maximum number. But in private companies, there can be fewer than 2 members and a maximum of 20.

9 Right to keep separate property-:

Any company can keep the property in its name. It can buy and sell assets from itself.

10 more prosecuted

The company can sue any person's institution professionsions in its own name. Similarly, any person or institution can also sue the company. Or can demand damages.

11 Determination of working limits

Every company has to create its own two main documents. The first councilor limit rule, the second councilor internal rule, the company cannot work outside it. It determines the objectives and methodology of the company.

12 Profit: A voluntary association to earn

The main objective of any company is to wish for-profit keeping in mind the interests of the society. After arranging the profit earned in the company according to the rules, the remaining profit is divided among the members.

                               type of company

1 based on the number of members

     1 private company

      2 public-person company 

      3 one-person company 

The definition of a private company or public company has not been given anywhere in the Companies Act. But according to the arrangement given in it, a distinction can be made between the two.

     Difference between a private company and a public company


   According to section 2 (68) of the 2013 Act, a private company is a company that fulfills the following conditions:

  1 The company-ups a minimum paid-up capital of Rs.1 lakh.

  2 There is a restriction on the transfer of its shares.

  3 Minimum number of members in a private company

    Less than 2 and the maximum can be 200.

     Note - Only the shareholders are counted among the members.


     A public company means such a company

1 which does not impose any restriction the n transfer of shares

2 Publicompaniesny can have at least 7 members and d maximum number of shares issued by the company.

3 The minimum paid-up capital of the company should be 5 lakhs.


3 one person one-persona 

(one-person company)

As per Section 2(62) of the Companies Act 2013, only one person is the sole member of the company. He acts as a company.

Types of Companies by Convention

1 Formation of companies by royal decree

   Such companies were formed in ancient times. Such companies are not formed at present. With the industrial development in Britain and Europe, such companies

Like the East India Company

Companies were set

2a  Company formed by special act of Parliament

Some such companies are in the interest of life for national construction, and the government arranges a special act to form such companies.

There are some such companies in India like Reserve Bank of India, State Bank of India, and Life Insurance Corporation.

Such companies are also called Veterinary Companies.

3 Companies amalgamated with the Companies Act

Maret of the company is formed by this process. According to the arrangement made in the Act for the formation of the company in the country, the formation of the company can be done by registering it.

Format of the company on a liability basis

1 limited liA limited company

  A limited liability company means a company in which the liability of the members is limited

These companies should use the word LTD in their name.

 2 Liability company limited by the value of  shares

   Such a company in which the liability of the members is limited to the value of the shares purchased by them. Shareware is called a company with limited liability.

 3 Limited company with  guarantees

          In this type of company, the liability of the members is limited to their guaranteed amount. The main objective of profit-making king profit-making.

4 Unlimited Liability Company

     In a company with unlimited liability, the liability of the members is unlimited like a partnership.

Types of Companbased of a Ca contra an   l

 1 What iha hoholdingand ompany

     When a company controls more than 50% of the shares of another company. Then the right of management of that company also comes to that company. Hence it is called a facilitator andanRomaa para ed to NY.

2 what is a real subsidiaries company

When the right of management of a company is with another company. Which controls it, then such a company is called a subsidiary company.

 company the basis of ownership

1 government company

 1 Any company in which more than 51% shares of the company are held by any 1 state government.

2 or with the central government

3 be with the center and the states

  Such a company will be called a government company.

2 non-government company

    Any company which is not a government company will be called a non-government. company by nationality

1 domestic company

   Any company which is in rugby accordance with the provisions of the Companies Act. Or any other legal process prevailing in India will bring the domestic company.

There are recreate that have been created keeping in mind the public interest. Their registration is done according to the Companies Act. But a separate law has been made for their control. These companies can be divided into the following parts.

1 banking company

A company that does banking business. A banking company doing financial transactions is called. The registration of a common company according to the Companies Act. But it is controlled according to the regulation of the Banking Companies Act, of 1949. The registration of these companies is done according to the Companies Act. But it is controlled under the Insurance Companies Act of 1938.

2 Insurance company

A company that does insurance-related work is called an insurance company.

The registration of these companies is done according to the Companies Act. But it is controlled according to the Insurance Companies Act of 1938.

 3 charitable company

The registration of such companies whose main purpose is not profit: those entities are registered according to section 25 of the Companies Act.

Such institutions are created keeping in mind the arts, scienreligiousgiodonen, an,d other social interests. These companies get special exemptions in income tax.

3 Investment company

Those companies whose main purpose is to invest in shares, debentures, other types of securities, etc. Such a company is called an investment company.

what is the foreign company any

A foreign company is a company that has been incorporated or registered outside the country. Who incorporated in India we call an Indian company.

   In the modern era, the business has become very wide. In the competition at the world level and to contribute to national development, the Indian company will also have to make more of its technological improvements. After the implementation of the liberalization policy, many such rules were implemented to make the company easy to operate. So that the Indian company can contribute to world competition. In the big companies of the world

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