Company is a voluntary association of persons formed for the purpose of doing business having a distinct name and limited liability. It is a juristic person having a separate legal entity distinct from the members who constitute it, capable of rights and duties of its own and endowed with the potential of perpetual succession. The Companies Act, 1956, states that a 'company' includes company formed and registered under the Act or an existing company i.e. a company formed or registered under any of the previous company laws. However, company is not a citizen so as to claim fundamental rights granted to citizens.
Limited Companies In such types of companies, the liabilities of members are always limited subject to some exceptions
1 Companies limited by shares These types of companies are quite common in commercial, trading and industrial world. Such companies are characterised with an authorised share capital of a certain amount, which is divided into units of definite sum called shares. The authorised share capital may comprise of more than one kind of shares, viz. ordinary or equity shares (voting and non-voting) and preference shares. The liability of each member of such company is limited to the unpaid amount of shares and premium, if any, held by him. 2 Companies limited by guarantee and having share capital Such a company by way of undertaking in its Memorandum of Association restricts the liabilities of its members to a certain fixed amount, for payment of the debts and liabilities of the company in the event of winding up. The members are liable only for the amount contracted before he ceased to be a member or payment of the debts and liabilities within one year after he ceased to be a member. Such companies may also have share capital whenever necessary. In that event, the members will be liable for the amount, if any, remaining unpaid on the shares subscribed by them, in addition to the above guaranteed amount. 3 Companies limited by guarantee without having share capital
Companies limited by guarantee without having share capital are exactly similar in nature to the guarantee companies as referred above except that there will be no share capital. The members will be liable, in the circumstance referred to above, to contribute an amount not exceeding the sum specified in the Memorandum of Association.
Public limited Companies The Company defined under section 3(1)(iv) of the Companies Act, 1956 is a public company which— (i) is not a private company; (ii) has a minimum paid-up capital of Rs. 5 lakhs or such higher capital as may be prescribed; (iii) is a private company but subsidiary of a public company.
There is no difference between limited company and public company. Public company is kind of limited company.
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