The main question is what is company law and its types; we’ll look into that further. A company is a group of two or more people who work together to achieve a similar business goal. A corporation is a “Separate Legal Entity” with a distinct identity from its members. A firm can possess property in its name, sue and be sued in its name, and enjoy endless succession, among other things, as a legal entity. ‘Incorporation of a Company’ is the legal process of establishing a corporate entity as a separate legal entity from its members. To start a firm as a corporation, a group of people must first come together. This article will study Who set up a company law committee? And other topics related to it. 

What is company law, and Who set up the company law committee?

The term “Corporate law” refers to both the legal practice of corporate law and the corporate philosophy. Corporate law refers to the law that deals with issues that arise directly from a corporation’s life cycle. As a result, it encompasses a corporation’s inception, funding, governance, and eventual demise. The committee was formed as part of the government’s efforts to promote ease of living by making it easier for law-abiding businesses to do business, support enhanced corporate compliance for all stakeholders, and address new challenges affecting business operations. So, who set up the company law committee can be easily answered now. 

About Company law and its types

Private Limited Company, Public Company, Sole Proprietorship, One Person Company, Partnership, and Limited Liability Partnership are the seven forms of entities recognised by Indian law (LLP). The various types of entities are detailed below.

• Private Limited Company: It is a business with a private owner. A private limited corporation can be founded with as few as two members and as many as 200. It is unable to submit a prospectus in the open market and make or accept public deposits. A private company’s shares are not freely transferable. An investor in India has the option of forming one of the following types of Private Limited Companies, according to the Companies Act, 2013:

1. Company limited by shares; 
2. Company limited by guarantee;
3. Unlimited company;

• Public company: It is one in which the Company’s stock is traded on a stock exchange. With a minimum of 7 members, a Public Limited Company can be founded. The transferability of shares is completely unrestricted. The government and other institutions such as the Reserve Bank of India, SEBI, and others, require more public disclosures and compliances from a Public Limited Company.
• Formation of a private limited liability corporation: A Private Limited Company can be registered under Section 2(68) of the Companies Act, 2013 if it has a minimum paid-up share capital of one lakh rupees or a greater paid-up share capital. A Private Limited Company must have two members and a maximum of 200 members to be incorporated. It is illegal for these businesses to raise money by issuing a prospectus. These are of three types: 

1. Company limited by shares;
2. Company limited by guarantee;
3. Unlimited company; 

• Formation of public limited company: A Limited Liability Company (LLC) is a public (other than a Public Sector Undertaking). To start a public business, at least seven people are required. A public company’s articles must not contain restrictions limiting the number of its members, forbidding the broad transfer of its shares to the public, or prohibiting any public invitation to subscribe for its shares or debentures.
• Sole proprietorship converted into a private limited company: According to the Companies (Incorporation) Rules, 2014, a one-person company must be converted into a private limited company within six months of the date on which the paid-up share capital exceeds INR 50 lakhs or the last date of the relevant period during which the company’s average turnover exceeds INR 2 crores.

Conclusion

We learned about company law in the above article and its types. The different types of company laws include private limited company, Public company, Sole proprietorship, Partnership, Formation of a private limited liability corporation, Conversion of a sole proprietorship to a private limited company and formation of the public limited company, etc. We also looked at the features of the company law committee report. Also, answering who set up the company law committee – The committee was formed as part of the government’s efforts to promote ease of living by making it easier for law-abiding businesses to do business, to support enhanced corporate compliance for all stakeholders, and to address new challenges affecting business operations.