Types of business entities in india
Open your Company in India with kkconsultancy
India has been identified as one of
the fastest growing major economies in the world, its service industry being
the key contributor. India is going through a phase of extraordinary economic
liberation and is encouraging foreign direct investment by granting more
accessibility to its massive and diverse market. For these reasons, many
companies are now targeting expansion by starting their own business in India.
Foreign investors can register various types of business entities in India.
Depending on the purpose, goals, initial investment, and the duration (short
term/long term) of business, investors can decide the structure for their
business. Read on to learn more about opening your company in India and the
types of business entities in India.
MAIN TYPE OF
BUSINESS ENTITIES IN INDIA :
8. Non-Government
Organization (NGO)
Private Limited Company in India
A Private Limited
Company in India is a privately held small business entity and considered as an
independent legal entity on incorporation. It has a minimum of one and a
maximum of fifty shareholders. Unlike Public Limited Companies, Private Limited
Companies cannot publicly trade its shares. It can have a minimum of two and a
maximum of fifteen directors.
Joint-Venture Company in India
Joint-Venture Company in India
A Joint Venture (JV),
as the name suggests, is a new business entity created through a partnership
between foreign and Indian investors, in which the partners jointly share the
profits, losses, management responsibilities, and operation expenses. The
advantages of joint ventures are that the foreign company can utilize the
well-established contact network, distribution, marketing channels, and the
available financial resources of the Indian partner. A JV also offers the
investors to jointly manage the risks involved with the new business and limit
their individual exposure by sharing the liabilities.
Partnership Firm in India
Partnership Firm in India
A partnership is “the
relation between people who have agreed to share the profits of the business
carried on by them or any of them acting for all”. A Partnership Firm in India
is a type of Joint-Venture Company. The owners of a partnership firm are individually
known as partners and collectively known as a firm. A minimum of two people are
required to start a partnership business. The maximum number of partners is
ten. The partners have unlimited liability and can share profits in any
mutually agreed ratio. The registration of a partnership firm is not compulsory.
One Person Company in India
One Person Company in India
A One Person Company
(OPC) is a newly introduced type of company in India since 2013. Incorporating
an OPC is only permitted to a resident of India. No foreigner can incorporate
an OPC. An OPC can be owned by a single owner. It was introduced to encourage
individual entrepreneurs to start their own business. This is a type of a
private company and likewise can feature as a separate legal entity. The
liability of the owner is limited.
Sole Proprietorship in India
Sole Proprietorship in India
A sole proprietorship
in India is a form of a business entity where a single individual handles the
entire business organization. The individual is the sole recipient of all
profits and bearer of all losses to the business. The liability of the owner is
unlimited. A Sole Proprietorship business is suitable where the market is
limited, localized, and where customers give importance to personal attention.
This type of company is suitable when the capital required is limited and the
risk- involvement is not huge. There are less legal formalities as
proprietorship does not have a legal existence.
Branch Office in India
Branch Office in India
Foreign companies
engaged in manufacturing and trading activities abroad can set up Branch Offices
in India. Branch Offices are not allowed to carry out manufacturing activities
on their own but can subcontract those to an Indian manufacturer. Before
commencing operations, the branch office requires an approval from the Reserve
Bank of India (RBI). Commercial activities of any nature are not allowed for a
Branch Office.
Non-Government Organization (NGO) in India
Non-Government Organization (NGO) in India
Non-Government
Organization (NGO) or Nonprofit Company is a citizen-based association that
operates independently of the government, usually to serve some social purpose.
These organizations are not intended towards gaining profits and work for
promoting a cause or development projects for the betterment of society.
Open Your Company in
India with KKCONSULTANCY
Open Your Company in India with KKCONSULTANCY
kkconsultancy can assist you
in opening up your company in India. We understand that starting a business and
registering a company in India can be complex as it involves approval from
multiple local authorities and bureaus. It also requires an understanding of the
country’s social, cultural, and legal particulars. Through its strategic
partners in India, kkconsultancy can assist you to accelerate your entry into India
and make sure that the formation of your company is compliant, quick, and
smooth.
See more about our company formation process here and reach out to us today to discuss how we can help
you setup your company in India.
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