When the business of a company is run with the help of member restriction, it is called private company. These companies are also called private limited companies. Usually, they have a minimum of 2 members and a maximum of 200 members. These companies usually are for smaller businesses where the public isn’t allowed to invest in shares or make any kind of deposits into the company. Private companies don’t allow its members to transfer shares among themselves either. However, they can begin the company with having to wait for a minimum subscription as the shares are allotted within the members itself.
A public company may have how many members as possibly needed without a cap to the maximum limit. These companies are public limited companies. The registrar of companies required certain documents to be filled by public companies which include the memorandum of association, articles of association and a prospectus. The paid-up capital that is required for a public company is a minimum of 5 lacs as opposed to the minimum 1 lac required for the private limited companies. Public companies can also accept public deposits unlike private companies.
When the power of a company to be incorporated is received from a grant of a charter to work, it is called a chartered company. This charter to be incorporated in usually given by a royal member or the like. It is often referred to as the royal charter, the right by a monarch and so on and so forth. Some chartered companies that existed are the famous East India Company as well as the Bank of England which were incorporated by the special orders of the Queen.
The companies that come into being from a statute or a special act from the parliament is a statutory company. They are usually public companies aimed to provide certain specified features to the public. The state bank of India, Air India and the Life Insurance Corporation are examples of statutory companies that were aimed to provide services of value to the public. The objectives, features, guidelines, limitations, expectations from the employees, rules and regulations and so on are provided by the act from the parliament itself. It is an autonomous corporate body with pre-set functions.
Registered companies are also called incorporated companies as they come into existence after registering themselves under a companies act that is passed by the government. The registration is later approved by the registrar of companies, making the registration legitimate or valid by providing these companies with a certificate of incorporation. They can be registered under the companies act 1956 or any other existing company act. Google India Pvt Ltd is a registered company.