Types Of Company

Private Limited Company

A private limited company is a most common and famous form to start a business. Any 2 or more people can start a business under the form of a private limited company.It is best suitable for Startups who may raise investors funding.

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One Person Company

If any person wants to open a company alone, without partnership or association of any other person. One person company is the best form of business entity for him.One person company enjoys almost all the benefits of a limited company.

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Limited Liability Partners

A Limited liability partnership is a partnership firm registered under MCA records wherein some or all the partners have their limited liability and are not responsible for another partner's misconduct or negligences.It is a better version of a partnership firm.

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Partnership Firm

A partnership firm is a form when 2 or more partners come together to do a business and divide the profits in an agreed ratio. However, in this form partners are liable for losses in the business as well as responsible for debts.

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Sole Proprietorship

A sole proprietorship well known as individual entrepreneurship is a kind of firm that is owned & handled by a single person on his/her name. The sole proprietorship receives all the profits and has unlimited responsibilities for losses & debts.

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Public Limited Company

A public limited company is a form where minimum 7 shareholders & 3 directors required. A public limited company can offer its shares to the public in the stock exchange and raise funds.

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Compare Business Forms

Form Of Business Private Limited Company One Person Company Limited Liability Partnership Partnership Firm Sole Proprietor
Recommended for Startup & Growing business One Man Army Partnership firm with legal shield Business manage by 2 or more partners Business manage by single person
Limited Liability Protection Available Available Available Not Available Not Available
Whether business name secure? Yes Yes Yes No No
Tax on profit 25% 30% 30% 30% 10-30%
Equity Funding Possible Not Possible Not Possible Not Possible Not Possible
Loan & Borrowings Easy Easy Easy Difficult Difficult
Audit Requirement Mandatory Mandatory If annual turnover exceeds Rs.40 Lacs or Capital exceeds Rs.25 Lacs If annual turnover exceeds Rs.1 crore If annual turnover exceeds Rs.1 crore
Start from 11449 Start from 10449 Start from 7999 Start from 1999 Start from 1499

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