All states allow corporations, partnerships, and LLC's, but some variations on these basic business types might or might not be available. II. Types of Companies Definition: A company is that form of business organization, which is created by law. It all depends on how the company is registered as. Since the definition, features, characteristics, and types of companies differ in different countries (especially in the United States), all the following sections will be focused on an Indian and UK perspective of a company. Company forms of businesses have become immensely popular over the years. In case of liquidation, the members of a company can either be liable to pay even from their personal assets or to the extent of the face value of shares held by them. Suggested Videos Some states allow just certain types of businesses, and many have different regulations and limitations on which business type can be established there. Companies are to be classified on the basis of liabilities, members and on the basis of control.. Under this category there are three types of companies: Unlimited Liability Companies: In this type of company, the members are liable for the company’s debts in proportion to their respective interests in the company and their liability is unlimited. Their development has led to the creation of so many new types of companies. LESSON : 1 MEANING, CHARACTERISTICS AND TYPES OF A COMPANY STRUCTURE 1.0 Objective 1.1 Introduction 1.2 Meaning of Company 1.3 Characteristics of a Company 1.4 Distinction between Company and Partnership 1.5 Types of Company 1.6 Summary 1.7 Keywords 1.8 Self Assessment Questions 1.9 Suggested Readings 1.0 OBJECTIVE A company can also be started as a single person company (one-person company). Types of Company on the basis of Liability. It refers to an association of persons, created to undertake business activities, having a separate legal existence, perpetual succession and a common seal. Types Of Companies Based On The Liability Of The Members.