According to Bangladesh company act 1994, there are mainly 2 types of company formation
1. Private Company- A private company is one which, by its articles,
a) restricts the right of the members to transfer their shares, if any.
b) limits the number of its members to 50; and
c) prohibits any invitation to the public to subscribe for any shares in, or debentures of, the company- Sec. 3(1)(iii).
2. Public Company- All companies other than private companies are called public companies. – Sec. 3(1) (IV). Public companies may be classified into three types:
a. Companies Limited by share- In this company there is a share-capital, and each share has fixed nominal values which the shareholder pays at a time or by installments. The member is not liable to pay anything more than the fixed value of the share.
b. Companies limited by guarantee- In these companies, each member promise to pay a fixed sum of money in the event of liquidation of the company. This amount is called the Guarantee. Sometimes the members are required to buy a share of a fixed value and give a guarantee for a further sum in the event of liquidation. There is no liability to pay anything more than the value of the share and the guarantee.
c. Unlimited Company- In these companies the liability of the shareholder is unlimited, as in partnership firms. Such companies are permitted under the companies Act but are not known.