Forms of Business Organization – Regulations in India
Financial Management Revision Article Series
Authors
Forms of Business Organization
Sole proprietorship
Partnership
Private company
Public company
Partnership
Partnerships are governed by the Indian Partnership Act, 1932.
Private Company
The Company Act 1956 regulates the functioning joint stock companies or companies.
A private company is a corporate body that can be formed by just two persons subscribing to its share capital.
In private companies, the number of shareholders cannot exceed fifty. Public cannot be invited to subscribe to its capital. The members’ right to transfer shares is somewhat limited.
Public company
A public company is a corporate body that has a minimum of seven members (shareholder).
A separate knol on Companies Act will be developed to discuss the act in more detail.
No comments:
Post a Comment