What are different types of companies ?

What are different types of companies?

                                                              

What are different types of companies?What is company law?Are the basic queries which are made by most of law students and people who associate initially with companies. This article aims to give a brief idea about it.

What is Law ?

Law is a set of rule decided by a particular statement for the purpose of keeping peace and security of society, Simply it means rules and regulations to compliment a particular work.

Numbers laws in India:-

As of Jan 2017 their were about 1248 laws approximately. However, since there are large number of central laws as state laws, it is difficult to ascertain their exact number..

Company Law :

Companies in India are regulated through the companies act 1956 (repealed law),  companies act 2013 (present law)which are administered by ministry of corporate affairs. Company law gives rules and regulation for the establishment and functioning  of the companies in India.

What are different types of companies ?

1. Private company - As per section 2(68) of the companies act 2013, a private company is one which has minimum paid up capital of ₹100000 or such higher paid up capital as prescribed by its articles of association.

2. Public company - According to section 2(71) of the companies act 2013,a public company means a company which is not a private company and has a minimum paid up capital of ₹500000 or such higher paid up share capital as may be prescribed by the companies act.

3. One person company - Companies act 2013 introduces a new type of entity to the existing list i.e.,'one person company'. An One Person Company means a private company with only one person as its member. Its minimum paid up capital should be ₹100000. It is only formed only for business  not for charitable purpose.

Also read.financial emergency Indian Currency System.

Importance of company law :

Company law Deals with mechanism  regarding,organisational setup ,managerial ,financial and all the relevant aspects of a company.

Corporations are famous for raking in large amounts of money and holding a decent amount of power in a particular market. As they become more profitable and powerful, corporations can start to monopolize markets, meaning they become the exclusive provider of a particular trade, product, or service.

Company law might seem as if they are in place to add hoops for corporations to jump through to do business. It is actually quite the opposite. Companies laws are in place to maintain a fair market so new businesses can enter and compete with others. They keep all corporations on an even playing field by outlawing overly unpredictable business activities and behavior.

CONCLUSION :

Because of the significant influence corporations have on the economy, the laws behind the way they function is very important and critical for a healthy economy . Having knowledge of companies law as someone involved in a corporation, especially as a leader, is a good way to keep your business in check. Company law is also a medium for checks and balances in functioning of companies.It also aims to provide proper environment for operations of companies and on other side keeps regulations on them.
BY"Gurleen kaur" Yamunanagar, Haryana ,India.