Types Of Business Entities In India

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Types Of Business Entities In India
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After toiling for long hours in the office, the
entrepreneurial bug suddenly bites a lot of us.
It is at that point that most of us either want
to take a road trip or set up our company where
we are our own boss. Honestly speaking, with
proper savings in a bank, taking a trip is quite
feasible. But those who are adamant of taking the
business destiny in their own hands, it is
important to know that there are different type
of companies which can be set up. For your
convenience, we have listed out the different
type of companies. The Types One-person company
(OPC) For those who like to fly solo, having a
one-person company is the best option. Usually,
an OPC is kind of like a proprietorship which has
all the advantages of a limited liability
company. Since only one person is required to run
this company, the legal costs for setting up such
a company are quite minimalistic. While the rules
governing the functioning of such a company are
quite minimal, it also has its shortcomings. In
case you hit a break-even point and the turn over
crosses the Rs.2 crore limit, then you will have
to convert the company into a private limited
one. Moreover, you are not allowed to raise funds
for your business as you are an OPC.
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Private Limited Owning a private limited company
is usually the most preferred form of business.
For a private limited company to be formed,
usually two people are required. Start-ups prefer
this type of company as it allows the founders to
conduct multiple and complex business
transactions. With a private limited company, the
founders are allowed to raise funds by selling
stakes, issuing ESOPs for employees etc. While
this is the most preferred and trusted form of
business, it comes with a number of legal
liabilities, which, if not handled carefully can
create trouble for the company. Public
Limited At least 7 people are required to start a
public limited company. One of the biggest
advantages of such business is that they can
raise a large capital and there is no limit on
the number of shareholders for the company. As
shares are easily transferrable so they brings
more liquidity in the business. Public limited
companies are allowed to put up their shares in
the stock market. It is usually suggested that
making the company public increases the value of
the company by 10-15 times.
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Limited Liability Partnership (LLP) If a LLP is
formed, then the partners oversee the operations
of the company directly and yet are burdened with
only minimal liability. The LLP is usually formed
between 2 or more partners through registration
of an incorporation document with the registrar.
The procedure for setting up a LLP is extremely
easy and has minimal requirements. Producer
Company As a concept, Producer Company was
introduced in India in order to allow
cooperatives to conduct their functions as a
corporate entity under the Ministry of Corporate
Affairs. In order to have this sort of company,
the members need to be engaged in activities
related to production. This includes products
related to agriculture, fishing, animal husbandry
etc. In order to register for this company, the
business needs to have either of the following-
Ten or more individuals who are producers Two
or more producer institutions A combination of
individual producers and producing institutions
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In an age when abundant information is available
at the click of the mouse, it is easy for
upcoming entrepreneurs to do their homework and
set about their venture. But nothing can ever
beat the advice and help of actual experts in the
field as they help take the burden off your
shoulder. When it comes to start with your
startup dream, you need to make decisions based
on nature and objectives of your business.
Business liabilities, sources of funding and
taxation in your chosen industry can become major
factors for the success or failure of your
venture. The structure of LLPs and Limited
Companies certainly help you retain controls and
ownership over your venture while staying assured
about future regulatory concerns. We at
Filingenie care about your business venture and
are a one-stop service for all your business
needs. Our experts take care of all the
background work so that you can focus more on
your business. Get in touch with us to know more
about how we can be of service to you. To visit
our website, visit here https//filingenie.com
or you can contact on 869-195-0000  
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Thank You.