Different Types of Company Structures in India
In India there are multiple company registration options that can opt by the aspiring entrepreneurs according to the suitability of their business. Some of these structures are explained below-
Private Limited Company- It is one of the most popular business structures amongst startups. This company can be formed with a minimum 2 and maximum of 200 members. There are in total three kinds of the private limited company the company limited by shares, the company limited by guarantee and the unlimited company.
One Person Company- This is a kind of private limited company with one member. This concept was introduced with the Companies Act 2013 with the basic aim of empowering the sole members to start their venture on their own without pooling any second person forcefully. Apart from the minimum requirement of one member, all the features of OPC are similar to private limited Company.
Partnership firm- It is a traditional form of company wherein any two partners decide to come together and carry on a business. The type of business structure is carried on with the partnership agreement. One of the major disadvantages associated with this company structure is that partners are personally liable for meeting the liabilities arising out of the action of other partners and the firm.
Limited Liability Partnership- This is the recently introduced concept with the limited Liability Act 2008. It was introduced as an improvement over the traditional form of partnership to limit the liabilities of the partners to their share only. This business structure possesses the features of both the partnership firm and the company.
Section 8 Company- This is a popular form of Non-Profit organizations in India. This company structure can be incorporated with the motive of promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment or any such other object”. One important thing to be noted in the case of this company structure any income of the company shall be invested in promoting its activities only and nothing should be distributed as a dividend to members