In Today’s article we will discuss types of companies or Company registration in India.The meaning of the word company signifies any entity formed under the Companies Act, 2013. made up of an association of people, be they natural, legal, or a mixture of both, Created for carrying on a commercial or industrial enterprise.  so before starting any type of business you have to carefully choose the right legal entity for your business.
types of company registration in india

Based on the activity/requirement of the commercial activities, different types of companies in India that can be formed under the Companies Act, 2013 are as follows :

Types of Company Registration In India

Private Limited Company

A private limited company is a company which is privately held for small businesses. The liability of the members of a Private Limited Company is limited to the number of shares respectively held by them.Shares of Private Limited Company cannot be publically traded. All the aspects of Private Limited Company are discussed in the article.Private Limited Company can be of three types:

1. Company Limited by Shares

It is the most common type of Private Limited Company. A company limited by shares means a company having the liability of its

members limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them.

2. Company Limited by Guarantee

It is the type of a company having the liability of its members limited by the memorandum to such amount as the members may undertake to contribute to the assets of the company if it gets bank corrupted..

3. Unlimited Company

The unlimited company is a company where there is no limit on the liability of its members. This means that if the company suffers a loss and the company’s property is not enough to pay off its debts, the private property of its members is used to meet the claims of the creditors. This means that there is a huge risk in such companies. Unlimited companies are not found in India; instead, their space is occupied by the proprietary kind of businesses.

Characteristics of the private limited company:

  1. Members–  a minimum number of 2 members are required and a maximum number of 200 members can start a company as per the provisions of the Companies Act 2013.
  2. Index of members– A private company has a privilege over the public company as they don’t have to keep an index of its members whereas the public company is required to maintain an index of its members.
  3. Exemptions regarding directors– When it comes to directors, a private company needs to have only two directors. With the existence of 2 directors, a private company can come into operations. Also, the private company need not appoint independent directors. The maximum number of companies of which a person may be appointed as a director is 20 in case of private company.
  4. Paid up capital– It must have a minimum paid-up capital of Rs 1 lakh or such higher amount which may be prescribed from time to time.
  5. Prospectus– Prospectus is a detailed statement of the company affairs which is issued by a company for its public. However, in case of a private limited company, there is no such need to issue a prospectus because in this public is not invited to subscribe to the shares of the company.
  6. Name– It is mandatory for all the private companies to use the word private limited after its name.

One Person Company

One Person Company (OPC) is a newly introduced type of company. OPC was introduced in the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. One of the biggest advantages of an OPC is that there can be only one member in an OPC, while a minimum of two members is required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership. Similar to a Company, an OPC is a separate legal entity from its members, offers limited liability protection to its shareholders, has continuity of business and is easy to incorporate.

Limited Company

The limited company requires a minimum of three Directors and has no limit on the maximum number of members (shareholders). A limited company has more stringent and extensive compliance requirements when compared to a private limited company.

Public Company

It is a types of companies in India whose shares can be bought by the general public. It is Created and owned by shareholders. Shares of a public limited company are listed and traded on a stock exchange market freely.

Characteristics of a public company:

  1. It must have a minimum of 7 members and no limit with regards to the maximum number of members.
  2. The shares of a public company are freely transferable.
  3. It can invite the public to subscribe to its shares or purchase its shares.
  4. It must constitute an Audit Committee of the Board.

Sole proprietorship

It is a form of business where a single person handles the entire business operation. He is the only person to enjoy profit and bear loss. There is no specific law that governs sole proprietorship.Proprietors of such firms have unlimited business liability. This means that owners personal assets can be attached to meet business liability claims.It is not possible to transfer the ownership of a Sole Proprietorship from one person to another.

Joint Hindu Family

Joint Hindu Family is a form of business organization where the business is managed and operated by family members. It is governed by Hindu Law.


The partnership is the relation between persons who have agreed to share the profits of the business carried on by all or any one of them acting for all.This type of firm is registered under Indian partnership act,1932.

I Hope by this article you might have come to know the types of companies in India that you can start. If you need any help with the company registration do check out our website today!