To form a company and lead it down the path of success is a childhood dream for many, and for some, it is the escape from getting bossed around. Whatever the reasons might be, it is necessary to have the proper knowledge and the determination to establish a successful business. Before all this, you need to know what you need to set up a business and what type of company is most suitable for you.
Types of Company
There are several forms of company that you can choose from. These types are briefly explained below:
- Sole Proprietorship- A company where one person holds the entire share capital is known as a Sole Proprietorship or a One Person Company. The owner of a one-person company should be a resident of India. This type of company can have a maximum of 15 directors, but none can hold any shares. It is legally treated as a private company.
- Limited Company- A company with liabilities limited by the number of shares held by its shareholders is known as a Limited Company. These are further categorized as a private limited company and a public limited company. Former is in which the distribution of shares is limited to its members while the latter is enlisted on the stock exchange, and the public can purchase its shares.
- Partnership- The type of company in which partners manage the transactions and operations of the company. A legal agreement defines the responsibilities and roles of the partners, and the profits and losses are also divided as per the agreement. The partnership companies are also further classified into Limited partnership and General Partnership.
There are many other things that you are required to know before coming up with a plan to form a company, and then there are legal requirements that you need to fulfill to register a company. If you lack any prior experience or knowledge, it is best to take assistance from someone who does. Contact 3E Accounting India for the required task of company registration. They are professionals and have the required resources to help you establish your business and provide India company incorporation services.