Handling a business is not an easy task if you are not an expert with the same. It comes up with lots of challenges and risks. One who is much witty and smart enough can only handle it properly. Once you could manage to set up your business then you will have to go on working on the same so as to develop your business. Be it a government or private company registration in India it has to be carried out with lots of patience and hard work. So as to start your business in India you will definitely have to choose one among the business entities. There are five legal entities in India. In this blog we will guide you and assist you with the same.
Listed Below is Some of the Vital Business Entities Needed for Company Formation:
- Sole Proprietorship- This happens to be the easiest entity which can be established in India. The company does not need it personal PAN card; the PAN card of the owner is only needed for the same. The registration with some government bodies may also be required. It has got no limit for the business liability. Even more the personal assets of the owner can also be used so as to need the business needs and requirements. It does not come up with much risk. You can also claim your personal assets.
- Partnership- From the name of the entity it is pretty clear that that there will be a partner with your for managing your business, there will be one more person who will be investing on the same. It comes under the partnership act 1932. Not only two sometimes three or four persons can run the business based on partnership. It can go up to maximum 20 persons as well. The total investment in the business in divided by each member of the business holders. Later on the profit and the earning is also divided by all of them. They can also draw certain amount on each other’s behalf as well. The partnership need not be dissolved in case the partner’s death.
- Partnership based on limited liability- It is one of the latest forms of entity introduced by the parliament act of India. Through this you could get the flexibility of owning the business but with a liable protection. The amount of liability depends on how much that particular person has invested on the same. In this firm has to have its personal PAN Number and some kind of legal status. It also provides protection to you if in any case your partner does some illegal harm to you.
- Private Ltd. Company- In India it is quite similar to C-corporation of unites states. Through this you could easily subscribe to the shares of the company. Then you become the share holder of the company.
No matter whether you want to apply for private company registration in India or any kind of partnership firm in India, you can apply for any type of business entity in India at LexOracle that is well-known for providing private company registration India, liability limited firm India, etc.