Different types of companies in India
Private Limited Company can be of three types: i) company limited by shares, ii) a company limited by guarantee, iii) unlimited company. The private limited company is those types of companies that have a minimum of two members and a maximum of 200 members. A private Limited Company is the most popular form of business in India among the startups because of its ability to issue shares to potential investors
There are 7 types of entities recognized under the Indian Law namely Private Limited Company, Public Company, Sole Proprietorship, One Person Company, Partnership, Limited Liability Partnership (LLP). Private Limited company is the most preferred form of business. Private company can be form by two persons.
There are various forms of business, some of the entities in India:
- Private Ltd Company
- Public Ltd Company
- Unlimited Company
- Sole proprietorship
- Joint Hindu Family business
- Limited Liability Partnership (LLP)
- Non Government Organization (NGO)
1. Private Ltd Company
- Confines the privilege of the shareholders to exchange their shares.
- Has at least 2 and most extreme of 50 individuals.
- Does not welcome open to subscribe to its offer capital
- Must have a base paid up capital of Rs. 1 lakh or such a higher sum which may be endorsed every now and then.
2. Public Ltd Company
- It permits the shareholders to exchange their shares.
- Has at least 7 individuals, and for most extreme there is no restriction.
- It welcomes the overall population to subscribe to its shares.
- Must have a base paid up capital of Rs 5 lakh or such a higher sum as may be recommended every once in a while.
3. Unlimited Company
Unlimited Company is a type of business association under which the risk of every one of its individuals is unlimited. The individual resources of the individuals can be utilized to settle the obligations. It can whenever re-register as a constrained organization under segment 32 of the Companies Act.
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4. Sole proprietorship
Sole proprietorship is a type of business substance where a solitary individual handles the whole business association. He is the sole beneficiary of all benefits and conveyor of all loses. There is no different law that administers sole proprietorship.
5. Joint Hindu Family
Joint Hindu Family is a type of business association wherein the individuals from a family can just own and deal with the business. It is administered by Hindu Law.
Partnership is “the connection between persons who have consented to share the benefits of the business carried on by all or any of them representing all”. It is represented by the Indian Partnership Act 1932.
Co-operatives is a type of intentional association, wherein the individuals cooperate for the advancement of the hobbies of its individuals. There is no limitation to the passage or way out of any part. It is represented by Cooperative Societies Act 1912.
8. Limited Liability Partnership
Under LLP (Limited Liability Partnership) the risk of no less than one part is boundless though rest the various individuals have restricted obligation, constrained to the degree of their commitment in the LLP. Not at all like general association this sort of organization does not get ended by the demise or indebtedness of the constrained accomplices. It is represented by Limited Liability Partnership Act of 2008.
9. Non-Government Organization
NGOs take up and execute projects to promote welfare of the community they work with. They work to address various concerns and issues prevailing within the society. NGOs are not-for-profit bodies which means they do not have any commercial interest.
Kanakkupillai.com helps in converting the business Proprietorship into an LLP, Partnership into an LLP, Private Limited into an LLP etc. It also helps in Accounting and Auditing. Further it can modify the business accordingly and if needed can also close the business.