# Structure of the Companies Act, 2013 and Classification of Companies

## Structure of the Act

Component	Number
Sections	470 (originally; some inserted/amended later)
Chapters	29
Schedules	7

## Stakeholders in a Company

```

Directors (Board of Directors) Shareholders / Members

| |

+-----------------------------------+

Company

+-----------------------------------+

| |

Board Meeting General Meeting

```

## Classification of Companies (Companies Act, 2013)

### 1. On the basis of Members / Incorporation

One Person Company (OPC) — only 1 member [Section 2(62)]
Private Company — 2 to 200 members [Section 2(68)]
Public Company — minimum 7 members, no maximum [Section 2(71)]

### 2. On the basis of Listing

Listed Company — securities listed on a recognised stock exchange
Unlisted Company — securities not so listed

### 3. On the basis of Origin

Indian Company — incorporated in India
Foreign Company — incorporated outside India but having a place of business in India (e.g., Tesla India)

### 4. On the basis of Liability

```

Company

+---------+---------+

| |

Limited Unlimited

+------------------+

| |

Limited by Limited by

Shares Guarantee

```

### 5. On the basis of Control / Relationship

Holding Company
Subsidiary Company [Section 2(87)]
Associate Company [Section 2(6)]

Worked example

### Example 1

Example 1 — Classification across categories: Reliance Industries Ltd. is simultaneously: (i) a Public Company (members > 200, can invite public), (ii) a Listed Company (listed on BSE & NSE), (iii) an Indian Company, (iv) a Company Limited by Shares, and (v) a Holding Company (it has several subsidiaries). A single company can fall under multiple classifications at once.

### Example 2

Example 2 — Foreign Company: Tesla Inc. is incorporated in the USA. If it establishes a showroom and office in Mumbai, it becomes a 'foreign company' under the Companies Act 2013 since it is incorporated outside India but has a place of business in India.

⚠️ Common exam mistakes

Confusing 'Listed' with 'Public' — every listed company is public, but not every public company is listed.
Thinking OPC must necessarily be a private company — under the Act, OPC is treated as a private company by default.
Forgetting that 'Foreign Company' under the Act requires both (a) incorporation outside India AND (b) a place of business in India.
Counting joint shareholders as separate members — joint holders are treated as a single member.

Reference:

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Structure and Classification of Companies

Worked example

⚠️ Common exam mistakes