Company as a word in general itself means that two or more than two persons are involved for any activity or purpose and same is applicable for any business incorporation. Company can be made to carry out any kind of commercial activities such as trading, manufacturing, services etc.
Type of Companies
There were previously two type of companies before Companies Act 2013 was brought into effect on 12th September, 2013
1. Private Limited Company (minimum 2 directors required)
2. Public Limited Company (minimum 2 directors required)
As per new Companies Act 2013, a new format was introduced i.e. One Person Company (OPC) format which is also a type of Private Limited Company but only one director is required for its formation and operations.
Another type of format which was added in Company Act 2013 was LLP which is known as Limited Liability Partnership where 2 persons come together to form a partnership firm whose liability are limited by shares.
How a company is identified whether its a OPC, LLP, Private Limited or a Limited Company?
With the help of an example I shall try to explain you that what is the format in which a company is working
1. Private Limited Company - Adarsh Technologies Private Limited
2. One Person Company - Adarsh Technologies (OPC) Private Limited
3. Limited Liability Partnership - Adarsh Technologies LLP
4. Public Limited Company - Adarsh Technologies Limited
Nowadays, the most popular format for incorporation of firms are in LLP format as there are less regulations required for running the business and cost incurred is also less as compared to private limited firms and advantage is this format enjoys the same facility with respect to liabilities as private limited firms .
