Registering your company online under the right business structure is an important decision. Before we learn how to register a company, let’s try and understand the different types of business structures available in India.
Section 2(68) of the companies act, 2013 state that a “Private company” means a company which,
(i) Restricts the right to transfer its shares;
(ii) limits the number of its members to two hundred;
Public company is an organization whose ownership is divided amongst general public shareholders through publicly traded stock shares on a stock exchange.
A company is considered public when the company’s securities trade on public
According to Section 2 (62) of the Company's Act 2013, one person company is a company which has only one person as a member.
A limited liability partnership (LLP) is a body corporate formed under the Limited Liability Partnership Act, 2008. It is a legal separate entity from its partners.
LLP is a partnership structure where it is liable to the full extent of its assets but
A partnership is a form of business in which there is a legal relationship between two or more persons who have agreed to share the profits of a business run by all or any of them representing all.
Persons who have entered into partnership with one another are called "partners"
A sole proprietorship is a type of business which is owned, managed, controlled and run by one person and in which there is no legal distinction between the owner and the business entity.
It is the mandatory legal compliance for every business to register them. The right business structure will allow your enterprise to operate efficiently and meet your required business targets. Here, find out the pros and cons of different structures.
Nidhi Company is a company registered under Companies Act. Nidhi Company is a type of Non-Banking Financial Company (NBFC) which is governed and regulate by the provisions of Companies Act, 2013. Nidhi companies work with the object of developing the habit of saving and reserve
A producer company is a body corporate engaged in any one or all of the following objects that is production, harvesting, grading, pooling, procurement, handling, marketing, selling, and the export of primary produce of the members or import of goods or services for their benefit.
An NBFC or a Non Banking Financial Corporation is a company registered under the provisions of under the Companies Act, 2013, and regulated by the RBI. These institutions are engaged in offering Loans and Advances, and Acquiring stock, equities, and debts issued by the government or any
Indian Subsidiary is a company that is owned by a foreign company, the Companies Act, 2013 regulate the registration process of the Indian Subsidiary. Any foreign national except the citizens of Pakistan and Bangladesh or an organization that is formed and is operating outside India can invest in
Microfinance companies in India are financial organizations that fulfill the finances requirements of the low-income people. The financial services such as insurance, loans, money transfer, savings and remittances that are offered to low-income group individuals. These companies provide small loans
Section 8 company is a company which registered as a Non-Profit Organization. The objective of these companies is to promote the fields of arts, commerce, science, research, education, sports, charity, social welfare, environment protection and other similar activities.
A non-profit organization can be registered
A Society is an organization in which a group of people with mutual interest come together to act cooperatively. Societies are registered with the object to promote charitable activities like arts, literature, science, sports, music, culture, religion, education.
The societies are regulated/ governed by the
A trust is a corporation that acts as a trustee or agent of trusts and agencies. A trust company may be independently owned or owned by an entity which specializes in being a trustee of several kinds of trusts.
A trust is a legal agreement where owner of trust transfer the property to a trustee along
As per section 18 of the Companies Act, 2013, if any form of company that is alLearny registered wants to convert itself into another form of a company, it can do so by making certain changes in the Memorandum of Association and Articles of Association. Here, check the other required formalities as per your business structure.
As a sole proprietorship business grows, it will be more beneficial for its owner to convert it into private limited. A private limited company offers significant advantages over the proprietorship form of business, including that of limited liability, ability to captivate equity capital, continued existence
As a partnership business grow, people started to think to get it converted into the private limited company to limit the liability of its members as a private limited is a separate legal entity from its members and to avail the other benefits of a private limited company.
Registering Partnership firms have certain drawbacks as compared to the Limited Liability Partnerships. The Partnership firms do not provide Limited Liability Protection to its Partners.
In the recent past year, LLPs have become a best option for small and medium-sized firm.
An OPC can be converted into a Private Limited Company voluntary if it meets the criteria mentioned below:
A One Person Company can get itself converted into a Private Limited Company after two years from the incorporation, by increasing the minimum number of directors
Section 2(68) of the companies act, 2013 state that a “Private company” means a company which,
(i) Restricts the right to transfer its shares;
(ii) limits the number of its members to two hundred;
(iii) Provided that where two or more persons
Conversion of Public Company into Private Company is time taking and involves many formalities prescribed in Companies Act, 2013 and rules made hereunder. The Private Company has an advantage of less compliance over Public Company