Discuss the three different types of company

Today everyone dreams of opening a company having a big building and numerous employers. As we know that opening a company requires lots of hard work. Deciding a type of company is the first and foremost thing the person should think before opening. Every person hires an expert, so get full-fledged knowledge of the company formation guide. With the help of expert skills, the businessman can make the right decision.

So here the list of three different types of company

  • Private limited company
  • Public limited company
  • One-person company

Private limited company: to establish a private limited company, the limit of members is fifty, and the minimum number of members is two. In this, the liability of the partners is limited and distributed according to the terms and conditions. The interference of government is zero as private persons wholly own it. The rules and regulations of the public and private limited companies vary. Even the procedure of opening a new company and documentation is also different.

Public limited company: when we heard the word public, then it means that there a role of government. In public companies, the maximum share is controlled by the government. The difference between the public and private limited companies is that the number of members in public limited companies is at least seven, and there is no maximum limit. The sale of the company depends upon the sale of shares to its shareholders. The central authority of public companies lies with the board of directors.

One- Person Company: The meaning of the one person company is clear from the title as it consists of a single-member. It is a small company as it only runs by one person. The liability is unlimited, and everything is set on the base of prior rules and regulations.

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