Q.Explain the classification of companies on the basis of ownership and control, as recognised under the Companies Act, 2013.

Ownership classification separates Government, non-Government, and Foreign companies by WHO owns the shares; control classification separates Holding and Subsidiary companies by WHO controls another company's Board or voting power.

On the basis of ownership:

1. Government Company — Section 2(45). A company in which not less than 51% of the paid-up share capital is held by the Central Government, or by any State Government(s), or partly by the Central Government and partly by one or more State Governments — also includes any company that is itself a subsidiary of such a government company.
2. Non-Government (private-sector) Company. Any registered company that does not meet the Section 2(45) government-shareholding test — ownership rests with private individuals, promoter families, or institutional investors.
3. Foreign Company — Section 2(42). A company or body corporate incorporated OUTSIDE India, which has a place of business in India (whether directly, through an agent, physically, or electronically) and conducts any business activity within India.

On the basis of control:

1. Holding Company — Section 2(46). A company that controls the composition of another company's Board of Directors, or holds (directly or through another subsidiary) more than one-half of that other company's total voting power. …