Types of Companies

1) Private

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.

2) Public

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.

3) Chartered

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.

4) Statutory

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.


5) Registered

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.



General Policies of a Company

1) Occupational Safety

Workplace safety is an increasingly important issue today as much as it was years ago. It is important that all potential risks and damages be informed to the employees well in advance and to even include them in the job description. The safety policy must also include the measures that will be taken in case, an employee’s health is at risk. The safety of the workplace itself must be made better by including emergency escapes, following drill evacuations and so on.

2) Equal opportunity

The workplace must be intolerant to any kind of discrimination of its employees. This could be based on their age, economic status, social status, gender, ethnicity, religion, sexual orientation and so on and so forth. Opportunities that arise in the workplace for growth must be equally available for all its employees despite the said factors.

3) Code of Conduct

Even though workplace ethics and conduct seems obvious, it is better to have them in writing and explicitly stated. It will help the expectations of the company and the employee remain in the same page. General expectations like attendance, punctuality, regularity and dress code can ne mentioned in this policy.

4) Absence Policy

The number of paid leave that an employee can have, the notice that must be given prior absence, steps to be taken after availing a leave, and so on can be discussed in this policy. The various policies regarding sick leave, maternity leave, paternity leave and so on can be mentioned here as well. This policy will help the employees be informed about the procedures and expectations regarding leave taking.

5) Disciplinary actions


Any kind of inappropriate behaviour requires certain actions and measures to be taken against them. This can include workplace harassment, sexual harassment, and discrimination and so on. The action that will be taken and the consequences that such individuals will face from the company need to be mentioned in this policy which will give the employees a feeling of safety in the company.

6) Employee Resignation and termination

The notice period before an employee resigns as well as before s/he gets terminated from the company needs to be mentioned in this policy. The procedures to carry out should also be made clear in the policy. This policy must be introduced to all the employees at the time of induction.

7) Benefits

All the benefits that the current as well as future employees of a company may avail need to be elaborated as well. This can include workplace safety measures, health benefits, increments, vacations and trips, retirement schemes and so on.