1. A company is an artificial person
created by law.
It is a voluntary association of
individuals for profits.

2. According to Section 3(1)(i) of the Companies
Act, a company means, “ A company formed
and registered under this Act or an existing
company.”

4.  Incorporated Companies: These are the
association of persons who contribute money to
a common stock known as capital of the
company. They have existence independent of its
members.
 Unincorporated Companies: These are the mere
collection of persons who have agreed to join in
partnership to run a business and share the
profits.

5.  Chartered Companies: The ‘Crown’ in the exercise of
the royal prerogative has power to create a
corporation by the grant of a charter to persons
assenting to be incorporated. Such companies or
corporations are known as chartered companies.
 Statutory Companies: A company may be
incorporated by means of a special Act of the
Parliament or any State Legislature. Such
Companies are called statutory companies. Such
companies are generally formed to carry out some
special public undertakings, e.g., railways,
waterways, gas, electric generation etc. They are
governed by the Acts creating them.

6.  Registered Companies:Companies registered under
the Companies Act,1956, or the earlier Companies
Acts are called registered companies. Such
companies come into existence when they are
registered under the Companies Act and a
Certificate of Incorporation is granted to them by
the Registrar.
 A company registered under the Act may be:
 i. Companies limited by shares: In a company
limited by shares the liability of the members is
limited by the memorandum to the amount, if any,
unpaid on the shares respectively held by them.

7.  ii. Companies limited by guarantee: It is a
registered company public or private, in which
the liability of members is limited to such
amounts as they may respectively undertake by
the memorandum to contribute to the assets of
the company in the events of its being wound
up.
 iii. Unlimited Companies: A company not having
any limit on the liability of its members is termed
as unlimited company.

8.  Private company: According to Section 3(1)(iii) of the
Companies (Amendment)Act,2000, a private company
means a company which:
 (a) has a minimum paid up capital of one lakh rupees or
such higher amount as may be prescribed by the
Government;
 (b) has a minimum of 2 and maximum of members
excluding employees;
(c) restricts the right of members to transfer its shares ,
if any;
 (d) prohibits any invitation to the general public to
subscribe for its shares or debentures;
 (e) does not invite the public to subscribe to its
deposits.
 E.g.:- Ambika Industries Pvt. Ltd., Paras Pharmaceutical
Pvt. Ltd. etc.

9.  Public Company: According to Section 3(1)(iv) of
the Companies (Amendment)Act,2000, a public
company means a company which:
 (a) is not a private company; and
 (b) has a minimum paid up capital of five lakh
rupees or such higher amount as may be
prescribed by the Government.
 E.g.:-Reliance Industries Ltd., Tata Iron & Steel
Co. Ltd., D.C.M. Ltd., etc.

10.  Besides all these companies there are few more
kinds of Companies:
 Government Companies: It is a company of
which 51% or more equity share capital is held
by the Government. Rest of the shares can be
held by private individuals or businessmen.
 Foreign Companies: It is incorporated outside
India but has a place of business in India. Some
of the popular MNCs operating in India are Coca
Cola(USA), Pepsi Cola(USA), Sony(Japan),etc.

11. Regulating Act
PARTNERSHIP FIRM COMPANY
 Indian Partnership  Companies Act, 1956
Act,1932

12. Number of Members
PARTNERSHIP FIRM COMPANY
 Minimum-2  Private Company:
 Maximum-20 in ordinary  Minimum-2, Maximum-50
business and 10 in banking  Public Company:
business  Minimum-7, Maximum-
No. of shares divided by
the lot of minimum
number of shares

13. Separate Entity
PARTNERSHIP FIRM COMPANY
 No separate legal entity  Separate legal entity from
from that of its partners. that of its members.

14. Liability
PARTNERSHIP FIRM COMPANY
 Unlimited  Limited

15. Management
PARTNERSHIP FIRM COMPANY
 All partners are entitled to  Only members of the
participate. Board of Directors are
entitled to manage.

16. Transfer of Interest
PARTNERSHIP FIRM COMPANY
 Not possible without the  Freely transferable except
consent of all the partners. in case of private company.

17. Financial Resources
PARTNERSHIP FIRM COMPANY
 Can raise limited resources.  Can raise large financial
resources.

18. Winding up
PARTNERSHIP FIRM COMPANY
 Can be dissolved at will  Cannot be wound up at
without any legal will. Winding up regulated
formalities as per provisions of the
Companies Act.

19.  A CONTRACT OF SALE OF GOODS IS A
CONTRACT WHEREBY THE SELLER
TRANSFERS OR AGREES TO TRANSFER THE
PROPERTY IN GOODS TO THE BUYER FOR
A PRICE.
THE TERM “ CONTRACT OF SALE “ IS A
GENERIC TERM AND INCLUDES BOTH A
SALE AND AN AGREEMENT TO SELL.