Chartered Companies Bank of England1694 East India Company 1600 Statutory Companies No M.O.A and A.O.A e.g R.B.I, U.T.I, F.C.I Registered Companies Companies Limited by shares Companies Limited by Guarantee 6. Unlimited Companies

Private companies u/s 2(68) of companies act 2013, A private Company means a company which has minimum paid up capital as may be prescribed and by its articles:- Restricts the right to transfer its shares Limits maximum number of shareholders as 200 Prohibits invitation to public to subscribe for any shares Features of Private Company Restriction on transfer of shares Limitation of membership Prohibition on inviting Public to subscribe for securities

Public Company According to section2(71)of the companies act 2013 ,A public company means a company which Is not a private company Has a minimum paid up capital as may be prescribed Is a private company which is a subsidiary of Public company

Privilege to a Private company Number of members Minimum number of directors Quorum for journal meeting Rotation of directors Managerial Remuneration Special disqualification for appointment as directors Rotational retirement of directors Filling casual vacancies Independent Directors Audit committee

When a private company looses its privilege When it fails to comply with the essential requirements of private company as given in section 2(68)

Disadvantages of a private company Cannot issue share warrants Is to file its annual list of member and summary with registrar Can not appoint more than one proxy It is to send certificate to registrar stating its annual turnover in the preceding 3 years never reached rupee one crore or more

Distinction between a public company and private company

Conversions Conversion of a public company into a private company Special resolution Name of the company Approval of tribunal Filing with the registrar

Conversion of a private company into public company Special resolution Changing the name Approval of the tribunal Filing with the registrar

Effect of conversion

One person Company Section 2(62) of the act defines one person company. Requirements One person should subscribe his name to memorandum Indian citizen and resident of India is eligible to form OPC Memorandum must indicate the name of the nominee Nominee can at any time withdraw his consent Member of OPC can at any time change nominee Any change in nominee must be intimated by member to the company who in turn will intimate ROC. Penalty Rs. 10,000 if default continues Rs. 1,000 for everyday.

Conversion of OPC to Private Company or Public Company When paid up capital> Rs.50 lakh or average annual turnover during the relevant period exceeds Rs. 2 crores. To convert into either public or private company within six months . Alter A.O.A and M.O.A. By passing resolution Within 60 days give a notice to registrar in form No. INC. 5 Comply with the requirements of the private and Public company

Conversion of Private Company into OPC A private company having turnover less than 2 crores and paid up capital less than Rs. 50 lakh can convert itself into OPC by passing S.R. Before passing such resolution the company shall obtain NOC from members and creditors File copy of S.R with registrar within 30 days from the date of passing such resolution in form No.MGRT.14. The company shall file an application in form No. INC 6 for its conversion into one person company.

Difference between OPC and Sole Proprietorship

Government Companies Section 2(45) of the companies act defines a government company to mean any company in which not less than 51% of the paid up share capital is held by: The central government Any state government or governments; or Partly by central government and partly by one or more state governments. A subsidiary of a government company will also be treated as a government company. e.g BHEL, STC etc. Appointment of auditor-CAGI Audit report-CAGI Annual Reports- with in three months of the AGM

Foreign Companies Section 2(42) of the companies act 2013 defines foreign company as “ any company or body corporate incorporated outside India which- Has a place of business in India whether by itself or through an agent, physically or through electronic mode; and Conducts any business activity in India in any other manner.

Provisions applicable on foreign companies Act to apply to foreign companies-51%shares in India Delivery of documents-within 30 days of its establishment Accounts of foreign companies Display of names etc. Service of documents Debentures, annual return, registration of charges, books of account and their inspection Fee for registration of documents Interpretation Particulars to be contained therein Registration of prospectus Offer of IDR Penalty -1 to 3 lakhs ,default in continuation Rs.50,000 imprisonment 6 months

Holding company Subsidiary company Formation of companies with charitable objects Small company-paid up capital<50 lakhs, turnover<2 crores Listed company Dormant company Unregistered company Public financial institution Illegal association Producer companies