Company Laws in India
The Company Laws in India is majorly governed in India by the following enactments:
- Companies Act, 2013
- The Indian Partnership Act, 1932
- Limited Liability Partnership Act, 2008
- Companies (Amendment) Act, 2019
A company is an association of two or more persons formed in furtherance of a common business objective. A company is a “Separate Legal Entity” having its own identity distinct from its members. As a legal entity, a company can own a property in its own name, can sue and be sued in its own name and also enjoys perpetual succession, among others. However, since a Company, unlike a human being, is an artificial person, it can only act through its agents, namely, the Board of Directors.
The process of legally declaring a corporate entity as a separate legal entity distinct from its members is known as “Incorporation of a Company”. An association of persons in order to initiate its business as a company has to get a certificate of incorporation from the Registrar of Companies (ROC).
Kinds of Companies
The kind or classification of a company would in general depend on the following factors:
- Mode of formation
- Number of Members
- Control of Management
- Liability of Members
Depending on the aforesaid, a company may be classified as a statutory company, registered company, public or private company, holding or subsidiary company, companies with limited liability, Government company or Non-Government company, One-man company, foreign company etc.
The two documents which are incidental to the formation of a company are:
Memorandum of Association and Articles of Association .
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