Distinguish between a Statutory Company and a Registered Company.

Question

Accepted Answer

| Basis | Statutory Company | Registered Company |
|---|---|---|
| Mode of creation | Created directly by a special Act of Parliament or a State Legislature | Created by registration (incorporation) under the Companies Act, 2013, or an earlier company law |
| Governing law | Primarily its own constituting Act; the Companies Act applies only to the extent that Act permits | Primarily the Companies Act, 2013, in full |
| Prevalence | Rare — a handful of specific public-purpose entities | The overwhelming majority of companies in India today |
| Examples | Reserve Bank of India (RBI Act, 1934), Life Insurance Corporation of India (LIC Act, 1956), State Bank of India (SBI Act, 1955) | Nearly every private and public company operating in India, from small private limited companies to large listed corporations |
| Relationship to other classifications | A distinct, standalone category | Every other classification in this chapter (private/public, government, holding/subsidiary, listed/unlisted) is a further sub-classification WITHIN 'Registered Company' |

> [!ANSWER]
> A Statutory Company is created by its own special Act of the legislature (e.g. RBI, LIC, SBI) and is governed primarily by that Act; a Registered Company is created by registration under the Companies Act, 2013 and forms the overwhelming majority of companies in India, with every private/public/government/holding-subsidiary/listed classification being a further sub-category of a Registered Company.

Q.Distinguish between a Statutory Company and a Registered Company.

Concept understanding — Classification of Companies Under the Companies Act, 2013

Basis	Statutory Company	Registered Company
Mode of creation	Created directly by a special Act of Parliament or a State Legislature	Created by registration (incorporation) under the Companies Act, 2013, or an earlier company law
Governing law	Primarily its own constituting Act; the Companies Act applies only to the extent that Act permits	Primarily the Companies Act, 2013, in full
Prevalence	Rare — a handful of specific public-purpose entities	The overwhelming majority of companies in India today
Examples	Reserve Bank of India (RBI Act, 1934), Life Insurance Corporation of India (LIC Act, 1956), State Bank of India (SBI Act, 1955)	Nearly every private and public company operating in India, from small private limited companies to large listed corporations
Relationship to other classifications	A distinct, standalone category	Every other classification in this chapter (private/public, government, holding/subsidiary, listed/unlisted) is a further sub-classification WITHIN 'Registered Company'

Q.Distinguish between a Statutory Company and a Registered Company.

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