Company Registration in Pakistan (Classification based by Virtue of Legal Form)

By virtue of legal form, companies can be classified into the following:-

• Statutory Comapany: The company that is formed under special statue is called statutory company. This type of company is governed by the ordinance issued by GoP. In Pakistan one of the most renowned statutory company is State Bank of Pakistan. Institution is regulated by the State Bank of Pakistan Ordinance.
• Chartered Comapany: Chartered company is formed under a special charter granted by the head of the state. This type of company normally enjoys some special rights or privileges over other companies. The Chartered Bank of England is an example of chartered company.
• Government Comapany: Government company is the one in which majority of the shareholding is of the Government or in other words, if 51% or more of the paid up capital of the company is owned by the Government. Further, a company which is a subsidiary of the Government Company is also called Government Company.
• Company Limited by Shares: A company limited by shares is the type of company in which the liability of the members of the company is limited to the amount unpaid on the shares if any. In simple words if company has authorized capital of PKR 100,000/- out of which members have paid just PKR 40,000/- then in case of any legal action or other dispute the members of the company are liable to contribute just PKR 60,000/-.
• Company Limited by Guarantee: A company limited by guarantee is the type of company in which the liability of the members of the company is limited up to the amount undertaken by members to contribute in the event of winding up of the company. In simple words the liability of the members is limited up to the amount guarantee by them.
• Unlimited Company: Unlimited company is the type of company in which the liability of the members of the company is unlimited. In simple words if the company is in the course of winding up then to settle creditors and other claims against the company there is no limit of contribution and even the personal assets of the members can be ordered to be taken in custody for the purpose of settlements of winding up of the company.
• Registered Company: A company in Pakistan registered under the provisions of The Companies Ordinance, 1984 is called Registered Company. It have different types which are explained below: