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Company Registration- How to choose the right business structure for your business?


There are too many things that need to be done and looked after when you decide to start a Business. Choosing a business structure is one of the most important decisions to be taken by entrepreneurs for starting a business because a business can’t be successful only with a great idea and investment. A successful business also depends on the type of business structure entrepreneurs are using. You can take help of professionals for online company registration in India as it involves less cost, less time and efforts.

In India, a business can be registered under any of the following business structures:

Ø Sole Proprietorship:
This is the easiest and most popular way to start a business in India. This business is owned and run by a single person and the owner and business are one and the same in a sole proprietorship. It is not a legal entity but a popular type of business structure, so there is no separate registration required to create one.

Ø One Person Company:
One Person Company or OPC  has only one person as a member that is also the only shareholder.
OPC Registration makes the entrepreneur/promoter a separate legal entity distinguished from the company and have limited liability. And, the company has its own assets and liabilities, the promoter and their property is detached and not personally liable to repay the debts of the company.

Ø Partnership Firm:
Partnerships in India are business structures where two or more individuals agree to share the profits and losses (in an agreed ratio) arising through the business that they start together.
Partnerships are registered under the Indian Partnership Act, 1932. However, it is not compulsory by law but it is highly recommended to get your Partnership Registration to avoid any future conflict between the partners.

Ø Limited Liability Partnership (LLP):
LLP Registration in India is a new form of business partnership structure where all of the partners have limited liability for the financial obligations of the business. In LLP, each partner has limited personal liability for the acts of other partners. And, each partner has to undertake some part of the everyday business operations. LLP Registration is mandatory, under the LLP Act.

Ø Private Limited Company:
Private Limited Company Registration is the most popular type of business structure to start a business in India. For company incorporation of a private limited company, a minimum of two shareholders and two directors are required, and a person can become both director and shareholder.
Private Limited Company has a separate legal entity status, therefore it offers limited liability protection to its shareholders and is also flexible, allowing them to raise equity funds.

Ø Public Limited Company
For company incorporation of Public Limited Company, a minimum of 7 shareholders/subscribers and 3 Directors are required. The liability of Shareholder is limited to his shareholding and has no personal liability. A public limited company is allowed to raise capital by selling shares at the Stock Exchange.

The process of startup registration or online company registration in India is difficult to understand for entrepreneurs and also online company registration in India and online firm registration process in India involves tedious documentation part. The company incorporation process also requires professional certification from professionals like CA, CS, and CMA. Therefore, it is better to consult professionals for company incorporation or online company registration in India and online firm registration process in India.       
You can search such professionals on online CA Directory of CAONWEB near you who can help you in company incorporation or online company registration in India and online firm registration process in India.

Comments

  1. A commitment of thankfulness is all together for huge data. It looks simple to begin a restrictive business. I ought to apply something here to the individuals who need to begin one individual affiliation. A lone individual can shape an OPC by purchasing in his name to the update of alliance and fulfilling various nuts and bolts suggested by the Companies Act, 2013. Reach vakilsearch to OPC Registration

    ReplyDelete
  2. i still don't understand the company registration in noida can any one explain easily

    ReplyDelete

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