Q: Describe the types of companies on the basis of incorporation ?

Ans:  On the basis of incorporation, the company is divided into three types: 

1. Chartered Company: The Companies like East India Company,  Bank of Japan are the Companies which were started under charter before independence are chartered Companies. Chartered act, 1813 is also called East India Company act, 1813. 

2. Statutory Company: The Statutory Companies are formed by passing the act.

The Companies like LIC, RBI, UTI (Unit trust of India) are formed under LIC act, 1956, RBI act, 1934 and UTI act, 1963.

These companies are not required to have memorandum of association and articles of association.

3. Registered Company: The Companies which are registered under Company Act, 1956 and Company Act, 2013 are the registered companies.

Keywords used: 

First, a charter can be defined broadly as the highest law of an entity. More specifically: In corporate law, the articles of incorporation. In public law, the instrument by which a municipality is incorporated (e.g., city charter).

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