Types of company
Joint
stock company may be classified into various types from different angles .They are
A.On the basis of
corporation/formation
a.charterd
company
a charter company is established by the special royal charter or sanction
by the head of nation. Before the enactment of the company act the procedure of
forming a company is by means of royal chartered. The special privilege and
right of company are granted in the charter. East india company, the bank of
England are the example of chartered company
b.statuory company :
a company, which is formed or incorporated by a
special act of parliament is known as statutory
companies. such company is governed by their respective acts and do not have
any memorandum or articles of association. Nepal rastra bank, Nepal airlines
are the example of it.
c.Registered company :
a company registered according to the provision of the company act is
known as registered company. The procedure of establishment ,right, duties
,working area and procedures of winding up such company are cleared at the time
of incorporation. In the context of Nepal , a registered company should be
incorporated according to the provision of company act 2063.
B.On the basis of
liability
i.Limited
company :
this type of company is registered with certain number of shares; the
liability of shareholder is limited up to the extent of the face value of
shares held by each of them. It means shareholders have no extra burden for the
payment of debt.
ii.Unlimited
company:
it is just like an ordinary
partnership. Under this type of company, shareholders are liable for all liabilities
of the company. The company of unlimited liability is rarely found in present
world.
iii.Company
limited by guarantee :
under this type of company, the liability of shareholder is limited to a
specified amount as mentioned in the memorandum of association. The amount of
guarantee may differ from shareholder to shareholder
C.On the basis of members :
1.Private
limited company:
It is one of the registered companies incorporated according to the
company act in the concern department. According to the company act 2063 ,the
minimum number of shareholder may be one and maximum shareholders should not be
exceed fifty .A private limited company cannot issue shares to the public for
subscription and remain limited to some limited number of shareholders .For quick
identification of such company the word “pvt. ltd” is written after the name of
company.
2.Public
limited company :
Companies other than private ltd.
comes under public ltd. Company.
According to section 2 of the company act 2063 , public company means any
company incorporated according to this act. The minimum numbers of the
shareholders are seven and maximum is unlimited for the registration of a
public limited company. A public ltd. Company can issue shares for public
subscription and shares are easily transferable.For quick identification of
such company the word “ ltd” is written at the end followed by the name of
company.
D.On the basis of
ownership :
a.Government company :
In this type of company ,government has minimum 51% of the paid up value of
share capital of the company. The management of the company is taken by the
government authority. In context of Nepal Janakpur cigarette factory, Birjung
sugar mill ltd. Are the example of government company.
b.Non-government company :
this type of company is
established under private ownership .government has no involvement in the
ownership of the company, if involvement is there that is less than 50% of
total paid of share capital. Government do not interrupt in the regular
business activities of the company, only completion of the few rules of
government is sufficient.
E.On the basis of
domicile
i.National
company
ii.
Foreign company
iii.
Multinational
F. On the basis of control
a.
Holding company
b.Subsidiary
company
