Our Government specified forms of business organization. There was a day when anyone started one’s Business very easily & in no time. But as time passed & the wheels of time have been faster than ever. But there is a good thing that If somebody wants to start his/her Business then they can start one’s Business anywhere in India.
Forms of business organization
As your know that today In each industry there is a lot of competition. People usually find jobs from one place to another. But some of them hate doing jobs. In this technology era, those who have any technical degree or technical knowledge cum experience want to do a Business whether it is small or big.
In this post, we will talk about all the forms of business organizations that people actually talk about. There are 7 types of businesses you can register.
Sole Proprietorship Firm
In a Sole Proprietorship firm, There is only one person to handle the whole Business. In this Business, there are unlimited liabilities on the proprietor. Actually, A proprietorship firm is not a Company because there are unlimited liabilities in this Business. there is a minimum number of compliances to be filed by the proprietor. This is one of the top Business formations that people like to make.
One Person Company
One Person Company is a one-person company & is free from the hassle of having directors in your Business. In this company. There is compliance more than in a proprietorship firm but minimum as compared to a Private Limited Company. There is no need for paid-up capital.
Limited liability Partnership
In this, Limited liability Partnership there are limited liabilities for the partners in this company. This is a type of separate entity. Hence this is called LLP & known as LLP. This LLP is the solution to the issue of unlimited liabilities in the proprietor firm. There must be a minimum number of two partners in an LLP. For creating LLP you can go through this link.
Private Limited Company
A Private Limited Company is the formation of two directors & a maximum of 200 shareholders. In this type of company, there are also limited liabilities. But there is a disadvantage to many compliances. We have to fulfill more compliance as compared to other formats of Business.