Types of company | What is a Private Company | What is a Public Company | What is a One Person Company | What is a Small company

by KiraMarch 11, 20190 Comments


In India, company is one of the most famous forms of business. If someone wants to make a company he must know the different types of company. So, let's discuss these forms in great detail.

1. Private Company

A private company is one of the most famous types of company. A private company may be a company limited by shares, limited by guarantee or an unlimited company.
  • Minimum Number of Members:- 2 members (Except one person company)
  • Maximum Number of Members:- 200 members.
  • Minimum number of directors:- 2 directors.
  • Maximum number of directors:- 15 directors (It can be increased by Special resolution)
  • Transfer of shares:- Restricted Right (They can not sell the shares like members of a public company, they have to give the first opportunity of buying shares to the existing members).
  • Invitation to subscribe:- No Invitation
  • Limit to issue debenture:- No such limit (The only condition is that an invitation to the public to subscribe for debentures id prohibited.)
  • Accepting Deposits:- Only from members.
Note:- according to proviso to section 14 (1) of the Companies act 2013, If a company try to alter its articles in such a manner that they no longer include the restrictions and limitations which are required to be included in the articles of a private company under this Act, such company shall, as from the date of such alteration, ceases to be a private company.

2. Public Company

A public company is the most famous form of a company if you want to start a business at a large scale. A public company may be a company limited by shares, limited by guarantee or an unlimited company.
  • Minimum Number of Members:- 7 members.
  • Maximum Number of Members:- No such limit.
  • Minimum number of directors:-3 directors.
  • Maximum number of directors:- 15 directors (It can be increased by Special resolution)
  • Transfer of shares:- Free to transfer.
  • Limit to issue debenture:- No such limit.

3. One Person Company

One Person Company is a special type of private company, in which only one member is required.
  • Minimum Number of Members:-1 member
  • Maximum Number of Members:-1 member
  • Minimum number of directors:-1 Director
  • Maximum number of directors:-15 directors
  • Transfer of shares:- Not applicable
4. Small company
A Small company is a company which is not a public company and:-
  • Has a paid-up share capital of not more than 50 lakh and;
  • Has a turnover of not more than 10 crores.
*Note:- This article will soon be updated.*


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