Which of the following is not a type of company under CO?

• A. Sole Proprietorship
• B. Private company
• C. Public company
• D. Guarantee company

Answer: (A)

Under the Companies Ordinance, a company is a separate legal entity created by registration. Sole proprietorship is not a company; it’s the business of one person and does not have separate legal personality, so it isn’t classified under the CO’s categories of company forms.

The CO recognizes forms such as private company, public company, and company limited by guarantee. A private company is designed for smaller ventures with restrictions on share transfers and the number of members. A public company can offer its shares to the public and is subject to stricter compliance. A company limited by guarantee has no share capital and is typically used for non-profit organizations, with members’ liability limited to a guaranteed amount. Since sole proprietorship isn’t a registered company, it isn’t counted among the types of company under CO.