Company

What is 'Company'

A company is a legal entity formed by one or more individuals for conducting business or other lawful purposes, including profit or charitable objectives. It is an artificial person created by law, having a separate legal identity from its members. It can own property, enter contracts, sue and be sued, and has perpetual succession.

The term “company” is derived from the Latin words com (together) and panis (bread), originally referring to a group of people sharing a meal. Over time, it evolved to signify a formal association organized to conduct business.

The legal nature of a company has been elaborated upon by several jurists. Professor L.H. Haney defines a company as “an artificial person created by law, having a separate entity, with perpetual succession and common seal.” According to Lord Justice Lindley, a company is “an association of many persons who contribute money or money’s worth to a common stock and employ it for a common purpose. The common stock so contributed is denoted in money and is the capital of the company. The persons who contributed it or to whom it belongs are members. The proportion of capital to which each member is entitled is his share.” Chief Justice Marshall of the United States observed that a company is “an artificial person, invisible, intangible, and existing only in contemplation of law." Similarly, Justice James described it as “an association of persons united for a common object.”

From these definitions, it can be concluded that a company is a registered association and an artificial legal person. It possesses an independent legal identity, enjoys perpetual succession, operates with a common capital composed of transferable shares, and provides limited liability to its members. Traditionally, companies also had a common seal for authentication of documents; however, following the enforcement of the Companies (Amendment) Act, 2015, the use of a common seal has been made optional. Together, these characteristics form the foundation of the modern corporate legal structure.

Official Definition of 'Company'

‘Company’ as defined in Legislations

The word “company” is defined in Section 2(20) of  Companies Act, 2013 as a company incorporated under this Act or under any previous company law.

A similar definition existed in the Companies Act, 1956, Section 3(1)(i) as a company formed and registered under this Act or an existing company as defined in clause (ii).

However, this statutory definition merely establishes the fact of incorporation without conveying the essential characteristics that define a company as a distinct legal person.

'Company' defined by Case Laws

Salomon v. Salomon & Co. Ltd. (1897)

This case addressed the fundamental principles of corporate personality and the doctrine of limited liability. The House of Lords upheld the doctrine of corporate personality, affirming that a company, once duly incorporated, is a separate legal entity distinct from its shareholders and directors.

Re: The Kondoli Tea Co. Ld. vs Unknown (1886)

It was held by Calcutta High Court that the Company was a separate person; a separate body altogether from the shareholders and the transfer was as much a conveyance, a transfer of the property, as if the shareholders had been totally different persons.

Union Bank of India vs. Khader International Constructions and others (2001)

In this case, the Supreme Court of India held that the term ‘person,’ as mentioned in Order 33, Rule 1 of the Civil Procedure Code, 1908, includes any company. Therefore, a company has the legal capacity to file a suit as an indigent (poor) person, emphasising its status as a legal entity.

Types of 'Company'

There are various kinds of companies that are registered under the Companies Act, 2013. The broad aspect of classification is on the basis of the members, for whom primarily there are two types of companies; private and public. There are also other ways of classifying companies. Incorporated companies are formed by registration under the Companies Act, 2013 or any other law.

Classification on the basis of Number of Members

On the basis of the number of members, there are three kinds of companies:

Private Company

A private company, as defined under Section 2(68) of the Companies Act, 2013, is a company having a minimum paid-up share capital as may be prescribed, and which, through its articles of association, restricts the right to transfer its shares, limits the number of its members to two hundred (excluding employee members and former employees who became members during employment and continued thereafter), and prohibits any public invitation to subscribe to its securities. For the purpose of this limit, joint holders of shares are counted as a single member. While a private company is permitted to issue debentures to any number of persons, it cannot invite the public to subscribe. Every private company is required to add the words “Private Limited” at the end of its name.

Public Company

As per Section 2(71) of the Companies Act, 2013, a public company is defined as:

(a) A company that is not a private company, and

(b) Has a minimum paid-up share capital as may be prescribed.

A company that is a subsidiary of a non-private company is deemed to be a public company for the purposes of the Act.

A public company can be formed by seven or more persons by subscribing their names to the memorandum of association and complying with the registration provisions under the Act. It typically has its shares listed on a stock exchange, making ownership accessible to the general public.

• One Person Company

One Person Company (OPC) got its legal recognition for its first time on the implementation of the Companies Act, 2013. The J.J. Irani Committee Report (2005) observed that it is possible for individuals to operate in the economic domain and contribute effectively and therefore recommended that the law should recognize the formation of a single person economic entity in the form of ‘One Person Company’, with a simpler regime to ensure that the entrepreneur is not compelled to fritter away his time, energy and resources on procedural matters. Under Section 2(62), The Companies Act, 2013 “One Person Company” means a company which has only one person as a member. One Person Company will be registered as a private company with one member and one director. It may be formed either as a company limited by shares or a company limited by guarantee or an unlimited liability company.

Classification on the basis of Incorporation

Companies may be Incorporated under the following categories:

Statutory Company

• These are constituted by a Special Act of Parliament or State Legislature. The provisions of the Companies Act, 2013 do not apply to them. Examples of these types of companies are Reserve Bank of India, Life Insurance Corporation of India, etc.
• Registered Company: The companies which are incorporated under the Companies Act, 2013 or under any previous company law and registered with the Registrar of Companies, fall under this category.

Classification on the basis of Liability

Under this category there are three types of companies: -

• Company limited by guarantee: Under the Companies Act, 2013, Section 2(21) “Company limited by guarantee” means a company in which the liability of its members is limited by the memorandum to such amount as the members agree to contribute to the company’s assets in the event of winding up. The members of a guarantee company are, in effect, placed in the position of guarantors of the company’s debts up to the agreed amount. The members are liable to the company and to any other person.
• Company limited by shares: As per Section 2(22) of the Companies Act, 2013, a “company limited by shares” is one where the liability of members is limited to the amount unpaid (if any) on the shares held by them, as stated in the memorandum of association. Members are not personally liable beyond the unpaid amount on their shares. Companies limited by shares are by far the most common and it may be either public or private.
• Unlimited Company: As per Section 2(92) of the Companies Act, 2013, an “unlimited company” is a company not having any limit on the liability of its members. In this type of company, the members are personally liable for all debts and liabilities of the company, without any limit, in case the company’s assets are insufficient. Such companies may or may not have share capital and may be incorporated as either private or public companies. The members are liable to the company and to any other person.

Classification on the basis of Control

A company can be classified either as a holding company or a subsidiary company on the basis of control exercised upon it. A holding company and a subsidiary company are related to one another. If one company exercises control over the other, the former is called a holding company whereas the latter is called a subsidiary company.

• Subsidiary Company: “Subsidiary company” or “subsidiary,” Section 2(87), Companies Act, 2013 in relation to the holding company which means-

1. A company in which the composition of the Board of Directors are controlled by the holding company.
2. A company in which the holding company exercises power at its discretion and appoints or removes all or majority of the directors or more than one-half of the nominal value of equity share capital is held by another company.

• Holding Company: Section 2(46), Companies Act, 2013 states that “in relation to one or more other companies, means a company of which such companies are subsidiary companies.” Therefore a company shall be presumed to be a holding company in place of another if it controls the composition of the Board of Directors or holds more than one half of the total voting power of the latter.

Body Corporate

For the purposes of determining holding and subsidiary relationships, Section 2(11) of Companies Act, 2013 the expression “company” includes any body corporate, whether incorporated in India or outside, except where expressly excluded by the Act. It excludes co-operative societies and such other entities as may be specifically excluded by government notification.

Classification on the basis of Ownership

Government company and foreign company are the two categorised on the basis of ownership.

• Foreign Company: According to Companies Act, 2013, Section 2(42) “foreign company” means any company or body corporate incorporated outside India which:

(i) has a place of business in India whether by itself or through an agent, physically or through electronic mode; and

(ii) conducts any business activity in India in any other manner.

This definition ensures that entities not incorporated in India but conducting business within its jurisdiction are brought under the compliance framework of Indian company law.

• Government Company: As per Section 2(45), Companies Act, 2013, a government company is one in which not less than 51% of the paid-up share capital is held by the Central Government, or any State Government, or a combination of both. The definition also includes any subsidiary company of such a government company.

Other Forms of Companies

• Section 8 Company: A person or an association of persons proposed to be registered under this Act as a limited company and proved to the satisfaction of the Central Government that the company –

(i) has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object;

(ii) intends to apply its profits, if any, or other income in promoting its objects; and

(iii) intends to prohibit the payment of any dividend to its members, such a person or association of persons may be allowed to be registered as a limited company without addition to its name of the word “limited” or "private limited" by the Central Government by issuing a license and by prescribing specified condition.

The association proposed to be registered under Section 8 shall not be proposed to be an unlimited company. However the same may be a company limited by guarantee or a company limited by shares.

• Associate Company/Joint Venture Company: According to Section 2(6) of the Companies Act, 2013, an Associate Company is a company in which another company has significant influence, but which is not a subsidiary of the company having such influence. This relationship is broader than the traditional holding subsidiary model and is based on influence rather than control. The Act clarifies that significant influence means holding at least 20% of the total voting power, or having control or participation in business decisions under an agreement. The definition also includes a joint venture company, which refers to a joint arrangement where two or more parties share joint control and have rights to the net assets of the venture. Associate companies typically arise through strategic partnerships, shareholding arrangements, or contractual rights, and form an integral part of group corporate structures, even though they are not under direct control of the investing entity.
• Investment Company: According to Explanation (a) to Section 186 of the Companies Act, 2013, an investment company is one whose principal business activity is the acquisition of shares, debentures, or other securities. A company is deemed to be primarily engaged in the business of investment if at least 50% of its total assets consist of such investments, or if at least 50% of its gross income is derived from the investment business.
• Producer Company: A Producer Company is a body corporate formed and registered under the Companies Act, 2013, or earlier under the Companies Act, 1956, for carrying out the activities specified under Section 378B. These companies are typically established by producers, such as farmers, artisans, or others engaged in primary production, to facilitate a wide range of activities including production, harvesting, processing, marketing, selling, or exporting their products. The Companies (Amendment) Act, 2020 introduced a new Chapter (Sections 378A to 378ZU) into the Companies Act, 2013, exclusively governing Producer Companies. This amendment came into effect on 11 February 2021. As per Section 378A(l), a Producer Company is defined as a body corporate having one or more objects related to production, procurement, or processing of primary produce of its members, and registered as such under the Act.
• Nidhi Company: A “Nidhi”, as defined under Rule 3(1)(d) of the Nidhi Rules, 2014, is a company incorporated with the object of cultivating the habit of thrift and savings among its members. It functions by accepting deposits from and lending to its members only, strictly for their mutual benefit. A Nidhi must be incorporated as such and must comply with the rules prescribed by the Central Government for its regulation. Though classified as a non-banking financial company (NBFC), a Nidhi is exempted from RBI’s core licensing requirements and is regulated by the Ministry of Corporate Affairs under Section 406 of the Companies Act, 2013. They are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company.
• Dormant Company: As per Section 455 of the Companies Act, 2013, a dormant company is one that has been formed and registered under the Companies Act for a future project, or to hold an asset or intellectual property, but is not actively carrying on any business or commercial operations. A company may also be considered dormant or inactive if it has not carried out any significant accounting transaction during the last two financial years or has not filed its financial statements and annual returns during that period.
• Non-banking Financial Company: A Non Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013 earlier (Companies Act, 1956) of India, engaged in the business of loans and advances, acquisition of shares, stock, bonds, hire-purchase insurance business or chit-fund business but does not include any institution whose principal business includes agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.

The term is defined under Section 45I(f) of the Reserve Bank of India Act, 1934, and includes:

1. A financial institution which is a company;
2. A non-banking institution that is a company, whose principal business is either:
   • Receiving deposits under any scheme, arrangement, or method, or
   • Lending in any manner;
3. Any other class of non-banking institutions specified by the Reserve Bank of India, with the prior approval of the Central Government, by notification in the Official Gazette.

• Listed Company: A listed company is defined under Section 2(52) of the Companies Act, 2013 as a company that has any of its securities listed on any recognised stock exchange in India. Listing enables public trading of a company’s securities and subjects the company to enhanced disclosure and compliance obligations under SEBI regulations.

Rule 2A, The Companies (Specification of definitions details) Rules, 2014 states for the purposes of the proviso to clause (52) of section 2 of the Act, the following classes of companies shall not be considered as listed companies, namely:-

(a) Public companies which have not listed their equity shares on a recognized stock exchange but have listed their –

(i) non-convertible debt securities issued on private placement basis in terms of SEBI (Issue and Listing of Debt Securities) Regulations, 2008; or

(ii) non-convertible redeemable preference shares issued on private placement basis in terms of SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares) Regulations, 2013; or

(iii) both categories of (i) and (ii) above.

(b) Private companies which have listed their non-convertible debt securities on private placement basis on a recognized stock exchange in terms of SEBI (Issue and Listing of Debt Securities) Regulations, 2008;

(c) Public companies which have not listed their equity shares on a recognized stock exchange but whose equity shares are listed on a stock exchange in a jurisdiction as specified in sub-section (3) of section 23 of the Act.

• Small Company: As per Section 2(85), Companies Act, 2013 a small company is a company other than a public company that meets both of the following conditions:

Its paid-up share capital does not exceed ₹50 lakh (or such higher amount as may be prescribed, not exceeding ₹10 crore); and

Its turnover, as per the profit and loss account of the immediately preceding financial year, does not exceed ₹2 crore (or such higher amount as may be prescribed, not exceeding ₹100 crore).

The above mentioned limitations shall not be applicable to

(A) a holding company or a subsidiary company;

(B) a company registered under section 8; or

(C) a company or body corporate governed by any special Act;

In furtherance of the objective of promoting Ease of Doing Business, the Ministry of Corporate Affairs, vide the Companies (Specification of Definition Details) Amendment Rules, 2022 dated 15th September 2022, revised the definition of a “small company” by increasing the threshold limits. The Companies (Specification of Definitions Details) Rules, 2014, Rule 2(1)(t), for the purposes of sub-clause (i) and sub-clause (ii) of clause (85) of section 2 of the Act, paid up capital and turnover of the small company shall not exceed rupees four crore and rupees forty crore respectively.

Table: Classification of Companies under the Companies Act, 2013

S. NO	BASIS OF CLASSIFICATION	TYPES OF COMPANIES
1	Based on Number of Members	- Private Company   - Public Company   - One Person Company
2	Based on Incorporation	- Statutory Company   - Registered Company
3	Based on Liability	- Company Limited by Guarantee   - Company Limited by Shares   - Unlimited Company
4	Based on Control	- Holding Company   - Subsidiary Company
5	Based on Ownership	- Foreign Company   - Government Company
6	Other Forms of Companies	- Section 8 Company   - Associate or Joint Venture Company   - Investment Company   - Producer Company   - Nidhi Company   - Dormant Company   - Non-Banking Financial Company (NBFC)   - Listed Company   - Small Company

Legal Provision related to Companies

Winding up

Winding up is a process of liquidating the assets of a corporation, firm or other legal entity in order to pay its creditors and make a distribution of assets to its partners or shareholders upon dissolution. According to Section 2(94A) of the Companies Act, 2013, "Winding up" means winding up under this Act or liquidation under the Insolvency and Bankruptcy Code, 2016, as applicable. Chapter XX Section 270-378 of the Companies Act, 2013 deals with winding up and other aspects of it.

A company comes into existence when it gets registered by the Registrar of companies (ROC) and obtains the certificate of incorporation by the ROC. It will come into existence even if an appointment is made in the form of a receiver or manager by the court or debenture holder, or the approval of a scheme of arrangement by the court.

The existence of a company is lost when the company completes two stages; the first being winding up and the second being Dissolution. There are only 2 major types or modes of winding up which are:

1. Compulsory Winding Up by the Court  
2. Voluntary Winding Up

Compulsory Winding Up by the Court

Compulsory winding up takes place when a company becomes insolvent or bankrupt. The creditor if the said company asks the court for a wind up. If the company goes into liquidation, the court of law appoints a liquidator to complete the process of liquidation. Section 270 of the Companies Act, 2013 deals with winding up by the Tribunal. Section 271 of the same act deals with circumstances in which a company may be wound up by the Tribunal;

A company may, on a petition under section 272, be wound up by the Tribunal:

• If the company is unable to pay its debts;
• If the company has, by special resolution, resolved that the company be wound up by the Tribunal;
• If the company has acted against the interests of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality;
• If the Tribunal has ordered the winding up of the company under Chapter XIX;
• If on an application made by the Registrar or any other person authorised by the Central Government by notification under this Act, the Tribunal is of the opinion that the affairs of the company have been conducted in a fraudulent manner or the company was formed for fraudulent and unlawful purpose or the persons concerned in the formation or management of its affairs have been guilty of fraud, misfeasance or misconduct in connection therewith and that it is proper that the company be wound up;
• If the company has made a default in filing with the Registrar its financial statements or annual returns for immediately preceding five consecutive financial years; or
• If the Tribunal is of the opinion that it is just and equitable that the company should be wound up.

Once the Tribunal is satisfied that the company has become insolvent or bankrupt then it orders the company to wind up and also orders the company to file a petition under Section 272 of the Companies Act, 2013. The following are the ones who can file a petition in the court for winding up of a company:

1. the company,
2. any contributor or contributories,
3. all or any of the persons specified in clauses (a) and (b),
4. the Registrar,
5. any person authorized by the Central Government in that behalf, or
6. in case falling under section 271(b), by the Central Government or State Government.

Voluntary Winding Up

A voluntary winding up takes place without the intervention of the court or tribunal. In a voluntary winding up the creditors and company agree mutually to wind up the company. This mode generally takes place

1. When the company expires its prefixed duration or, due to the occurrence of certain events whereby the company has to be dissolved, and if the company adopts and passes an ordinary resolution for winding up.
2. If the company passes a special resolution to wind up the company

Merger of Companies

The law relating to mergers and amalgamations is governed by Chapter XV (Sections 230 to 240) of the Companies Act, 2013, along with the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, which came into effect on 15 December 2016. These provisions lay down the procedure for compromises, arrangements, amalgamations, and corporate restructurings.

A merger refers to the combination of two or more entities into one, not merely aggregating assets and liabilities but reorganizing them into a single, unified business.

Sections 230 to 234 provide the general framework for such transactions, requiring the preparation of a scheme of arrangement, which must be approved by shareholders, creditors, and the National Company Law Tribunal (NCLT).

• Section 233 provides a fast-track route for mergers involving small companies and wholly owned subsidiaries, dispensing with tribunal approval.
• Section 234 enables cross-border mergers between Indian and foreign companies, subject to prior approval from the Reserve Bank of India (RBI).

Under section 434(1)(c) of the Act, all proceedings under the Companies Act, 1956 including those relating to arbitration, compromise, arrangement, reconstruction, and winding up pending before any District Court or High Court stand transferred to the NCLT, which continues the proceedings from the stage at which they were transferred, thereby ensuring procedural continuity and uniform adjudication.

Inspection

The Central Government may, if it is satisfied that the circumstance so warrant, direct inspection of books and papers of a company by an inspector appointed by it for the purpose. Inspections under Section 206(5) are generally ordered after consideration of material in one or more of the following circumstances:

1. Violations/irregularities noticed on examination of documents filed in the offices of the RoCs;
2. Qualifications in Auditor's reports;

iii. Complaints received in the Ministry or in its field offices about manipulation of books, division & siphoning of funds, mismanagement, delay in transfer of shares/debentures, delay in payment of dividend, nonpayment of deposits or interest thereon, etc;

iv. References received from other regulatory authorities.

Inspections are broadly undertaken to serve one or more of the following objectives of verification:

1. Whether there is due compliance by companies with various provisions of the Companies Act;
2. Whether the company's financial statements disclose a true and fair view of the company's state of affairs and whether the financial statements have been prepared in accordance with the various Accounting Standards notified by the Central Government under Section 133 of the Companies Act 2013;

iii. Whether requisite disclosures as specified in Schedule II to the Companies Act 1956 as well as Accounting Standards prescribed by the Central Government under Section 133 of the Companies Act, 2013 have been made in the financial statements;

iv. Whether the company's funds have been diverted or misappropriated or managerial personnel have misused fiduciary position for any personal gain;

v. Whether there are acts of mismanagement or oppression of the minority shareholders that adversely affect the interest of the company's stakeholders, or which may merit the company to be wound up on just and equitable grounds under the Act;

vi. Whether the funds raised by the company through public issues/ private placements have been utilized for the purposes for which the same were raised;

vii. Whether statutory auditors have carried out their duties diligently while certifying that the accounts reflect a true and fair view of the financial position of the company.

Investigation

Power to order an investigation in the affairs of a company is vested with the Central Government under Section 210 of the Companies Act, 2013, if it is of the opinion that it is necessary to do so:

i. based on a report of RoC or Inspector, under Section 208;

ii. based on a special resolution of a company that its own affairs need to be investigated;

iii. based on judicial orders; and

iv. in the public interest.

The Central Government may appoint one or more persons as Inspectors for carrying out investigation under Section 210.

Where the matter involves serious fraud or complexity, the investigation is assigned to the Serious Fraud Investigation Office (SFIO). The Government may refer a case to the SFIO if it is of the opinion that an investigation is necessary:

a. On receipt of a report of the Registrar or Inspector under Section 208 of the Companies Act, 2013;

b. On intimation of a special resolution passed by a company that its affairs are required to be investigated;

c. In the public interest; or

d. On request from any department of the Central Government or a State Government.

Special Courts

As per Section 435 of the Companies Act, 2013, the Central Government may, for the purpose of providing speedy trial of offences under this Act, except under section 452, establish or designate as many Special Courts as may be necessary.

A Special Court shall consist of: a single judge holding office as Session Judge or Additional Session Judge, in case of offences punishable under this Act with imprisonment of two years or more; and a Metropolitan Magistrate or a Judicial Magistrate of the First Class, in the case of other offences, who shall be appointed by the Central Government with the concurrence of the Chief Justice of the High Court within whose jurisdiction the judge to be appointed is working.

International Experience

The concept of a company as a separate legal entity embracing separate legal personality, limited liability, and perpetual succession is recognized globally, though statutory terms and structural details differ across jurisdictions. India’s Companies Act, 2013 provides a unified regulatory framework, whereas other countries operate under federal or state specific corporate regimes. Below are precise definitions from key jurisdictions, together with comparisons to India’s model:

United Kingdom

Under Section 1 of the Companies Act 2006 (UK), a “company” is defined as one formed and registered under the Act, including entities previously Registered under the Companies Act 1985 or the Companies (Northern Ireland) Order 1986, treated as if incorporated under the current law. Unlike India’s centralized Ministry of Corporate Affairs (MCA) and National Company Law Tribunal (NCLT) system, the UK relies on Companies House for centralized registration and public accessibility, while legacy companies retain continuity under older statutes and now seamlessly operate under the updated Act.

United States of America

The United States is one of the richest sources of legislation, case laws and debate about corporations. The United States is a federation of States with one Federal and other States Constitutions. Company law is essentially a state subject. A Business Corporation Act is the collection of laws in each state that governs corporations. A model corporation statute compiled by the American Bar Association has been adopted in whole or in part by, or has influenced the statutes of many states. The Model Business Corporation Act defined “Corporation,” “domestic corporation,” “business corporation” or “domestic business corporation” in section 1.40 as a corporation for profit, which is not a foreign corporation, incorporated under this Act. “Corporation” has been given special meanings in sections 5.01, 8.50 and 13.01. This contrasts India's national uniform framework. While India’s corporate governance and adjudication are uniform across states, the U.S. allows substantial variation from one state to another, although the MBCA promotes consistency.

Australia

The Corporations Act 2001 defines “company” under Section 9 as an entity registered under the Act. Australian corporate supervision is centralized via the Australian Securities and Investments Commission (ASIC). The system is similar to India's in centralization, though India's MCA and NCLT provide both regulatory and adjudicatory oversight, whereas Australia relies on ASIC and courts respectively.

Canada

Canada functions under both federal (CBCA) and provincial company laws. Under Section 2(1) of the Canada Business Corporations Act, a “corporation” is a body corporate incorporated or continued under this Act and not discontinued under it. This dual structure contrasts with India's single statute, meaning corporations may need to comply with both federal and provincial requirements, potentially complicating governance.

China

According to Articles 2 and 3 of the Company Law of the People’s Republic of China (revised 2018), a “company” refers to either a limited liability company or a company limited by shares incorporated in China, and is recognized as an enterprise legal person with independent legal property and full liability for debts. Shareholders’ liability is limited to their capital contribution or shareholding. Though conceptually in line with India’s approach, China’s regime includes greater state oversight and conditional licensing for foreign entities. India, under Chapter XXII, permits foreign companies to conduct business with reduced restrictions compared to China’s model.

Appearance of 'Company' in Official Database

Annual Reports

Summary Statistics of Indian Companies

The table presents the overall status of companies registered in India as on 31st March 2024, indicating that out of 26,63,016 total registered companies, the rest were classified as active, closed, dormant, under liquidation, or in the process of closure.

Source: Ministry of Corporate Affairs, “10th Annual Report on the Working and Administration of the Companies Act, 2013,” Table 3.1, p. 11. Available at: https://www.mca.gov.in.

State/UT-wise Companies Registered in India

This chart highlights that Maharashtra (5,14,640), Delhi (4,10,313), and West Bengal (2,38,243) have the highest number of registered companies among Indian states as on 31st March 2024.

Source: Ministry of Corporate Affairs, “10th Annual Report on the Working and Administration of the Companies Act, 2013,” Chart 3.1, p. 12. Available at:  https://www.mca.gov.in.

Monthly report

https://www.mca.gov.in/bin/dms/getdocument?mds=FgIU6oOvJZ%252FTjF7o7ne3WA%253D%253D&type=open

Table 1,2,3

OPC - table 8,

LLPs - table 10,11

Foreign company- table 12

MCA Website

Company LLP master list

Master Details of companies/LLPs registration, struck off/closed available at: https://www.mca.gov.in/content/mca/global/en/data-and-reports/company-llp-info/incorporated-closed-month.html

Dedicated database on companies on alert. these include -

Master Data Services V3 > Company/ LLP Search

Master Data on Company/LLP accessible at: https://www.mca.gov.in/content/mca/global/en/mca/master-data/View-Companies-Directors-under-prosecution-V3.html

Related terms

In the Indian legal and business context, the term ‘company’ is often used interchangeably with terms such as ‘corporation’, ‘body corporate’, ‘firm’, ‘business entity’, ‘enterprise’, ‘organisation’, ‘institution’, ‘entity’, ‘incorporated entity’, ‘legal person’, and ‘limited company’, depending on the specific usage and context.