Companies have been classified into various kinds on the basis of different categories.
On the basis of incorporation – Statutory Company and Registered Company.
On the basis of liability - Company with limited liability and Company with unlimited liability
On the basis of number of members – Private Company and Public Company
On the basis of control – Holding Company and Subsidiary Company
On the basis of ownership – Government and Non-Government Company
Statutory Companies are created by acts of legislature and Registered Companies are formed and registered under the Companies Act, 1956. Companies of limited liability may be of two types – Companies limited by shares and Companies limited by guarantee. Company with unlimited liability means a company where every member is liable for the debts of the company in proportion to his interest in the company. According to the provisions of the Companies Act, 1956 a private company is one which has a minimum paid up capital of Rs.100000 and which imposes restrictions on the transfer of its shares to retain the private character of the company and which limits the number of its members to 50.