A company is usually recognized as a group of people who have come together to accomplish one specific goal or objective. Before planning to start a business an individual needs to have thorough knowledge about the types of companies available for formation. Understanding the price involved along with advantages will allow them to set up the best suited company in terms of budget limitations and size of the company.

Most common types of companies people get to choose which can launched according to the procedures are:

1)      Private company which means that the minimum paid up capital to be one lakh or higher and it limits the transfer rights of company shares. It also restricts the members of this company excluding persons employed in the company currently, previously. General public are not allowed to own shares in this company, does not even accept deposits from people other than the members of the company.

2)      Any company which is not private can be said to be public company and capital investment can be any where from five lakh rupees.

3)      Government Company is the one where the Central Government, state Government or both the governments partly have shares at least fifty one percent or more.

4)      Foreign companies are the one which have their headquarters outside India and yet have work place in India and also handle local business.

Types of companies are categorized based on the incorporation, liability and control factors. Corporations are broadly seen in existence, they have special feature which differentiates if from other business ventures, these are said to be legally independent from the owner which does not make them liable for the business and freeing the burden from their shoulders. The owners will not be responsible for any debts or losses occurred in the company however they will loose all the investment put into this.

Partnerships are other prominent type of companies available, which is opted by most of them so that they can avail the tax benefits offered to the owners. The only disadvantage with this type of company is that the owners will be held in charge for any legal issues which the company may come across. Limited Liability companies combine all the features of partnership and corporations and make use of all the best qualities in both types that is the owner can take advantages of the tax profit and yet will not be held responsible for the legal troubles.