Business Entities in India: Public Limited, Pvt Limited, OPC, LLP, Partnership or Proprietorship
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- เผยแพร่เมื่อ 4 ต.ค. 2024
- Types of business entities in India
Sole proprietorship vs. partnership firm vs. limited liability company (LLP) vs. public limited company vs. private limited company vs. one-person company vs. joint venture
How to Choose a Business Organisation Type
Sole proprietorship: This is a business that legally has no separate existence from its owner. The sole proprietorship lacks legal personality. It merely alludes to a business owner who is personally liable for the company's debts.
Partnership Firm : Section 4 of the Partnership Act defines that “Partnership” is the relation between persons who have agreed to share the profit of a business carried on by all or any of them acting for all. ... However, there is no legal provision to declare the partnership firm to be a separate legal entity apart from its partners
Limited liability Partnership: LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. ... The LLP is a separate legal entity, is liable to the full extent of its assets but the liability of the partners is limited to their agreed contribution to the LLP
Public Limited Company : A Public Limited Company under Company Act 2013 is a company that has limited liability and offers shares to the general public. Its stock can be acquired by anyone, either privately through (IPO) initial public offering or via trades on the stock market
Private Limited Company - A Private Limited Company is a business entity held by a small group of people. It is registered for pre-defined objects and owned by a group of members called shareholders.
One Person Company (OPC) : As per Section 2(62) of the Company's Act 2013, a company can be formed with just 1 Director and 1 member. It is a form of a company where the compliance requirements are lesser than that of a private company.
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