In India, a Private Limited Company stands out as a popular business structure regulated by the Companies Act, 2013. Entrepreneurs aiming to establish a company in India find it crucial to undergo Private Limited Company Registration. This not only fosters the development of a strong business framework but also offers directors the advantage of limited liability. To register a Company under the Companies Act, 2013, it needs to be registered with ROC (Registrar of Companies) as per the guidelines & norms laid down by the MCA.
The Public limited company in India is a voluntary association of members which has a separate legal existence and the liability of whose members is limited and it can sell its shares to the general public for raising capital. A Public Limited Company can either be an unlisted Company or listed Company on the Stock Exchange. It is suitable for large businesses that require huge capital.
One person company (OPC) in India is one of the easiest forms of corporate entities to manage. It opens up new business opportunities for sole proprietors and entrepreneurs who also wish to enjoy the advantages of limited liability, and a separate legal entity as well. OPC is a form of a company where the compliance requirements are lesser than a private company. It can be registered with only one person who will act as a shareholder as well as director of the company.
In India, the concept of Limited Liability Partnership was introduced in 2008 by the LLP Act, 2008. LLP has become the most preferred form of business among entrepreneurs. Registering an LLP in India has both the limited liability features of a Private Company and the flexibility of a Partnership Firm. No partner is answerable on account of unauthorized or illegal actions of other partners, thus individual partners are protected from joint liability created by another partner’s misconduct. LLP form of organization is usually preferred by Professionals, Micro and Small businesses that are family owned or closely-held. The maintenance cost and compliances are less in LLP.
In India, partnership firms are governed and regulated under the Indian Partnership Act, 1932. Partnership firm is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in the Partnership Deed. A partnership deed is a contract between the partners that governs the relationship between the partners as well as the partnership firm and establishes the rights, responsibilities, and obligations of each partner involved in the venture.
A Sole Proprietorship is a type of business that is owned and managed by only one person and the owner of the business is called a Sole Proprietor. This type of business is the most common form of business that is used in India. The business is run by a natural person, there is no legal difference between the the business and its owner. The government of India has not prescribed any sole proprietorship firm rules and regulation in India. To establish a proprietorship firm, registration is not mandatory but advisable to get legal recognition.