Company Law of India - An Overview

The Companies law 2013 is an Act of the Parliament of India which governs directors, incorporation of a company, obligation of a company, dissolution of a company. The English Common Law is the point of origin of the Company legislation in India.

Different types of companies are as follows:-
1.    Public sector undertaking - It is owned by the central government of India or the state government.
2.    One-person company - It is a sort of privately owned business which can have just a single member or director.
3.    Limited Liability Partnership - Liability is limited
4.    Hindu Undivided Family - Businesses which owned by a joint family belonging to Hindu religion.
5.    Dormant company - An organization which has been made for a future venture or for holding resources including licensed property of the organization.
6.    Unlimited Company - It is a company, where the obligation of the individuals or shareholders is not constrained.
7.    Sole Proprietorship - It is possessed and run by an individual. 
8.    Family Owned Business
9.    Small company - A company other than a public company whose paid up share capital is not more than ? 50 lakhs.
10.    Partnership - liability is joint and unlimited.
 Registration not compulsory.
 Active partners take part to invest in the business and participate in the day-to-day activities of the business and      share of the profits.
 Sleeping partners invest in the business and are entitled to a share of its profits, but do not participate in day-to-day    operations.

In 1850, the first law on ‘registration of joint stock companies’ was sanctioned in India which was founded on the basis of English Companies Act of 1844 known as the Joint Stock Companies Act, 1844.

Periodically several Companies Acts has been passed in India which were based on the English Companies Act.
This Act of 1850 accepted the company as a distinct legit entity but the privilege of limited liability was not granted to the company under the Act. 

Some of the new concepts introduced in company laws are:-
•    Women Directors
•    Class Action
•    Registered Valuers
•    One Person Companies
•    Rotation of Auditors
•    Dormant Company
•    Fast Track Mergers
•    Serious Fraud Investigation Office
•    Corporate Social Responsibility.


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