Different Types of Company Registration in India (2024)

FAQs

Different Types of Company Registration in India? ›

This blog explains the process of 7 types of company registrations in India viz, Public Limited Companies, Private Limited Companies, One Person Companies, Partnership Firms, Limited Liability Partnerships, Sole Proprietorships, and Section 8 Companies.

This blog explains the process of 7 types of company registrations in India viz, Public Limited Companies, Private Limited Companies, One Person Companies, Partnership Firms, Limited Liability Partnerships, Sole Proprietorships, and Section 8 Companies.

There are 7 types of entities recognized under the Indian Law namely Private Limited Company, Public Company, Sole Proprietorship, One Person Company, Partnership, Limited Liability Partnership (LLP).

The types of business structures in India include sole proprietorship, partnership, limited liability partnership, private limited company, public limited company among others. Find the complete list below: Sole Proprietorship.

Know Your Company Type

Consider a Private Limited Company if you want to raise funds or plan for ESOPs in the future. On the other hand, if you're in professional services and need limited liability, an LLP might be the best choice for you.

LLP Vs Pvt Ltd – An overview

One partner is not held responsible for the other partners' liabilities. LLP follows guidelines laid down by the Limited Liability Partnership Act, 2008. In a Private Limited (Pvt Ltd) company, private investors hold shares, and the public cannot trade those shares on the stock exchange.

A Private Limited Company is the most common form of company registration governed by the Companies Act 2013. It is a type of business entity with limited liability privately owned by a group of individuals or shareholders. It's a preferred choice for startups and businesses.

Typically, there are four main types of businesses: Sole Proprietorships, Partnerships, Limited Liability Companies (LLC), and Corporations. Before creating a business, entrepreneurs should carefully consider which type of business structure is best suited to their enterprise.

As per the data, 159,524 companies were registered with a collective paid up capital of Rs 18,132.16 crore in 2022-23. At the end of March 2024, the country had a total number of 2,663,016 companies and out of them, 1,691,495 companies or 64 per cent were active.

What are the different forms of business ownership in India? ›

You can look over these five legitimate Business ownerships in India. There are Sole Proprietorship, Partnership Firm, Limited Liability Partnership, Private Limited Company, and Public Limited Company. The decision of the business element is subjected to different factors.

Private Limited Company

Start-ups and growing companies pick this popular business structure because it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to attract top talent.

A private limited company is a privately held business entity held by private stakeholders. The liability arrangement, in this case, is that of a limited partnership, wherein the liability of a shareholder extends only up to the number of shares held by them.

The organizational structure you choose will determine the taxes you must pay, the compliance measures you must follow, and the eligibility criteria you need to meet. Hence, it is one of an entrepreneur's most vital decisions. In India, there are seven different types of company registration.

The most preferred business structures for a startup are Private Limited companies and LLPs. A Private Limited company is legally recognized and generally favoured by investors. However, it has stricter compliance and may have a higher cost of incorporation.

The total cost of One Person Company registration in India, including government and professional fees, starts from ₹8,499 and takes around 7-10 working days. Cost (Rs.)

As per the data, 159,524 companies were registered with a collective paid up capital of Rs 18,132.16 crore in 2022-23. At the end of March 2024, the country had a total number of 2,663,016 companies and out of them, 1,691,495 companies or 64 per cent were active.

The limited liability company, or the LLC, in India is a business structure that is separate from its founders and where the investors are only liable up to the extent of capital they invest in the business. The company can enter into agreements, can commence legal proceedings and can be sued.

Registration types are categories you create to determine what different groups of people see during registration, what they can select, and how much those items cost. Common examples include Attendees, Exhibitors, or Speakers.