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Know About Company

(Company) A voluntary association formed and organised to carry on a business.

It is of various types, like partnership, limited liability, corporation, private limited company, public limited company.

(Private Company)Business firm in the private (non-public) sector of an economy, controlled and operated by private individuals (and not by civil servants or government-employees). Used also as an alternative term for private limited company.

It is a business company owned neither by non-governmental organisations nor by a relatively small number of shareholders or company members which does not offer or trade its company stock(shares) to the general public on the stock market exchanges, but rather the company’s stock is offered, owned and traded or exchanged privately.

More ambiguous terms for a privately held company are unquoted company and unlisted company.

Features of a private company: –

  • It is generally known as small company, which is not listed in exchanges.
  • Minimum capital of 100000/-.
  • Employee range from 2 to 200.
  • Annual turnover less than 2 crores.
  • It’s paid of share capital doesn’t exceed 50 lakhs.
  • Appoint at least 2 directors.
  • It is prohibited for private limited companies from asking money to public in form of loan or deposits.
  • It is mandatory for all the private companies to use the word private limited after its name.

(Public Company)Public Company is a corporation, whose ownership is dispersed among the general public in many shares of stock which are freely traded on a stock exchange or in over the counter markets.

In other term, Business firm in the public (non-private) sector of an economy, controlled and operated by civil servants or government personnel (and not by private individuals). Used also as an alternative term for public limited company.

Features of a public company: –

  • Companies held by board of directors. Normally it compromises Minimum 2 to maximum 12. These are elected by the share holders by the shareholders in the time of board meeting.
  • This company does not belong to any person, since one person own parts of it.
  • Minimum number of seven shareholder or members and a limitless number of members.
  • Shares of the company can bought and sold in stock market.
  • A public limited company is not affected by death of one of its shareholders, but her shares are transferred to the next of kin and the company continues to run its business as usual. In the case of a director’s death, an election is held to replace the deceased director.

(Image Courtesy :pixabay.com/en/skyscraper-skyscrapers-building-1893215/)

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