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Classification of Company - Coggle Diagram
Classification of Company
Company Limited by Shares
Minimum members; 1 for a private company, 2 for a public company
No maximum members unless a private company which is 50
The fee much higher
No requirement to incorporate a share capital company with a constitution
Company is a legal person separate from its members, and having full capacity & power to sue and be sued
Independent legal person
Liability of members is limited unless the company is registered as an unlimited company
Shares of the members can be sold or transferred to others although this may be restricted for a private company.
Can be dissolved by following a formal procedure
Partnership Firm
Minimum members : 2 person
Maximum 20 partners except in the case of firm of professional
The fees for registering a partnership firm under the Business Registration Act are much less
Not compulsory to have a written partnership
Firm and partners are one and the same
No separate legal entitiy
Partners are collectively and individually liable for all the debts of the firm
A partner cannot transfer his contribution to the working capital to others without obtaining the consent of all the other partners
Can be dissolved by an informal agreement
Limited Liability Partnership
Minimum partner: 2
No maximum number of partners
Incorporation can only be done via website
Partnership Agreement is not compulsory although encouraged to have one
The type of business that can register as LLP are : an audit firm, a professional secretarial firm, a legal practice and a small trading
The LLP is separate legal person from the partners.