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There are various company structures from which to pick if you want to start a business. The taxes you must pay, the compliance procedures you must take, and the eligibility requirements you must fulfill are all determined by the organisational structure you chose. As a result, determining what forms of company structure to conduct in India is one of the most important decisions an entrepreneur can make.
The main method through which business owners form or incorporate their business is through company registration. Because India has so many various types of businesses, entrepreneurs must select one that best suits their operations. The Companies Act of 2013 in India enables seven distinct business structures:
One of the primary structures of different company structures in India is a private limited company. Private limited corporations are ideal for enterprises that require private entity registration. To safeguard their own assets, a group of shareholders divides the liability among themselves in this form of business. Furthermore, the members' personal and corporate assets are treated separately, providing them greater safety and security. A company's shares cannot be traded or transferred publicly.
As per the Companies Act, 2013 the below-mentioned criteria must be fulfilled:-
A public limited corporation is one in which members of the general public can buy shares. There is no limit to shares that can be offered or traded in such businesses. Because the company's shares are publicly listed, they may be freely exchanged, making the shareholders part-owners. Before beginning commercial activities, such businesses must get a certificate of registration with the RoC.
As per the Companies Act, 2013 certain criteria are required for a public limited company:-
The limited liability partnership, or LLP, is a relatively new corporate entity in India. It has its own legal character, allowing the entrepreneurs to segregate between personal and company assets while also providing limited liability protection. The liability of each partner in an LLP is determined by the number of shares in the company.
The following requirements must be completed in order to form an LLP:
OPC is the newest addition to the several forms of company registration available in India, and it is ideal for small firms. It is the greatest choice for entrepreneurs who want to manage their own firm. Entrepreneurs benefit from liability protection without needing to associate with anybody else because the OPC has its own legal standing.
An OPC is simple to implement and regulate since it only requires one person. It is essentially a hybrid of the sole proprietorship and the private limited company business entity models.
To become an OPC, you must meet the following requirements:
Section 8 corporations, sometimes known as non-profit organisations, work for philanthropic objectives. The goal is to promote the arts, science, literature, education, charitable giving, and environmental protection. Furthermore, any earnings earned by them are spent to fulfil these goals, and the members do not get dividends.
Requirements that need to be fulfilled for registering as a Section 8 Company are:
Nidhi Companies are classified as non-banking financial companies. A Nidhi Company's registration permits it to borrow from and lend to its members.
Nidhi Companies, which are located in India, were established to encourage members to practise thrift and save money. The cash that a Nidhi Company receives comes solely from its members.
As a result, registering the Nidhi Company is simple. Nidhi Limited should be at the end of the name since they are registered as Public Companies.
It's also important to note that the Nidhi Companies are regulated by the Reserve Bank of India.
A producer company is a company which primarily deals in Agricultural activities. Ten or more individuals each of them being producers may come together to form a producer company. The main activities in which a producer company deals are enlisted below:
It is important to know everything about the company registration and the main 7 company structures in India. Online legal India provides you with the best company registration services under the supervision of experts.
Our team provides you with the proper guidance and helps you through the entire process. They also give you the details of the seven main company structures in India. So that you can choose the right one for your company.
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