Adv Ch Shahid Bhalli

How Many Types of Companies in Pakistan

As per Lawkidunya, There are several types of companies in Pakistan, each with its own unique characteristics and advantages. Here are the main types of companies:

– Sole Proprietorship: A business owned and operated by one individual, with unlimited personal liability.

– Partnership: A business owned and operated by two or more individuals, with shared profits and losses.

Private Limited Company (Pvt Ltd): A separate legal entity with limited liability for shareholders, requiring at least two shareholders.

– Public Limited Company: A company listed on a stock exchange, with shares available for public purchase and a minimum of seven shareholders.

Limited Liability Company (LLC): A flexible business structure that combines elements of partnerships and corporations, with limited liability for members.

Single Member Company (SMC): A private limited company with only one shareholder, offering full control and limited liability.

– Non-Profit Organization (NPO): A company formed for charitable, educational, or social purposes, with tax exemptions and fundraising challenges.

– Foreign Company: A company incorporated outside Pakistan, but operating within the country and required to register with the Securities and Exchange Commission of Pakistan (SECP).

– Cooperative Society: A member-owned business with shared benefits and democratic management, often formed for social or economic goals.

– Company Limited by Shares: A company where shareholders’ liability is limited to their share capital.

– Company Limited by Guarantee: A company where members guarantee a certain amount in case of winding up.

– Unlimited Company: A company where shareholders’ liability is unlimited.

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