There are various business constitution in India. A person can start its business in a capacity of proprietor or he can constitute a partnership firm under Partnership Act, 1932. However, when a person wish to have a business structure which gives more confidence to the stakeholder, he chooses to have a company registered under Companies Act, 2013.
A company can be of different types depending upon the nature of liability and number of members. Following are list of such incorporations:
1. One Person Company (OPC)
It is recently introduced in the year 2013, an OPC is the best way to start a company if there exists only one promoter or owner. It enables a sole-proprietor to carry on his work and still be part of the corporate framework. This gives a corporate goodwill to the proprietor business and infuse more confidence in the minds of stakeholders.
2. Limited Liability Partnership (LLP)
This concept is introduced as an alternate to partnership firm registered under Partnership Act, 1932 wherein the liability of the partners in case of dissolution is unlimited.
Whereas in case of LLP being a separate legal entity from its partners, the liabilities of partners are only limited only to their agreed contribution. This again infuses more confidence in stakeholder about the business of partnership firm and its stability.
3. Private Limited Company (Pvt.)
A Private Limited Company is considered in the eyes of the law as a separate legal entity from its promoters. It has shareholders (stakeholders) and directors (company officers). Each individual is regarded as an employee of the company. In these there is a restriction on the number of members and liability is limited to their shareholding.
4. Public Limited Company
A Public Limited Company is a voluntary association of members which is incorporated under Company Act. It has a separate legal existence and the liability of its members are limited to shares they hold.
You can choose what business structure suits your business needs best and accordingly register your business.