Types of company as per member liability

Types of company as per member liability

Unlimited liability – In these types of company, the members or partners of company have a unlimited liability. If an unlimited company does not have enough for all payment, it will be shift to share holders. These types of company are rare in current time frame.

 

Limited by Guarantee – In these types of company, partners are limited by guarantee. Amount will be mention in Memorandum. Amount will be pay when they winding up the company. These types of company not formed for economic gain or profit, but they are generally for art, culture, charity, science or sports.

company as per member liability

Limited by share – These types of company normally registered with an amount which is mention in its MOA (Memorandum of Association). This investment or capital divided a numbers of shares like one rupee, ten rupee or so on. If any person wants to become a member, firstly he buys some share & his name also write-down in register after that he become a member of company.

Government companies – If Government have at least 51% share of any company, we call it a Government company. May be this ratio held by central Government, state Government or other local bodies.  

What you know about Sole Proprietorship

What you know about Sole Proprietorship

Sole proprietorship – a business in which a person responsible for managing all the business activity, responsible for providing fund and bearing all the risk. It is also called single man business or one person business. 

Sole Proprietorship

In these types of business a single person is responsible for all the matters related with business.

Some feature/characteristics for these types of business –

ü  Own capital – these types of business start only with own capital. That person manages all the capital from his own resources for investment purpose.

ü  These types of business have a small size and a single person is responsibility for all the activity.

ü  Manage & control – the sole proprietorship manage all the activity of business. A owner make all the decision & have a full control over all the full activity.

ü  These types of business have an unlimited liability. Risk factor is really high in these types of business.