What are the types of business structures in India?

Show your support with sharing

What are the types of business structures in India?

1. One Person Company (OPC)

Recently introduced in the year 2013, an OPC is the best way to start a company if there exists only one promoter or owner. It enables a sole-proprietor to carry on his work and still be part of the corporate framework.

2. Limited Liability Partnership (LLP)

A separate legal entity, in an LLP the liabilities of partners are only limited only to their agreed contribution.

3. Private Limited Company (PLC) 

A company in the eyes of the law is regarded as a separate legal entity from its founders  It has shareholders (stakeholders) and directors (company officers). Each individual is regarded as an employee of the company.

4. Public Limited Company (PLC)

A PLC is a voluntary association of members which is incorporated under company law. It has a separate legal existence and the liability of its members are limited to shares they hold.

You can choose what business structure suits your business needs best and accordingly register your business.

Other forms of business structures include Sole proprietorship, Hindu Undivided Family,  and Partnership firms. Please bear in mind, these structures do not come under the ambit of company law.  

Leave a Reply

Your email address will not be published. Required fields are marked *

Recently Added

Copyright © All rights reserved
Design by Indoc Web Design