Picking the right company structure for your business is as important as any other business-related activity. The right business structure will allow your enterprise to operate efficiently and meet your required business targets. In India, every business must register themselves as part of the mandatory legal compliance. Before we learn how to register a company, let’s try and understand the types of business structures in India.
Recently introduced in the year 2013, an OPC is the best way to start a company if there exists only one promoter or owner. It enables a sole-proprietor to carry on his work and still be part of the corporate framework.
A separate legal entity, in an LLP the liabilities of partners are only limited only to their agreed contribution.
A company in the eyes of the law is regarded as a separate legal entity from its founders It has shareholders (stakeholders) and directors (company officers). Each individual is regarded as an employee of the company.
A PLC is a voluntary association of members which is incorporated under company law. It has a separate legal existence and the liability of its members are limited to shares they hold.
You can choose what business structure suits your business needs best and accordingly register your business.
Here is a comparative list of the popular business structures in India.
The company name should be unique and easy to remember. The company name should be attractive. Also, please check company name from Registrar of Companies' website as well check the trademark status of the proposed name of the company. In case, you find the proposed trademark is objected or opposed then avoid filing the same name.
The name of the proposed company should have a meaning.
Check Company registration status and Trademark status.
The Name of a company must not be the name of State/Country/ District or Famous personality of India or aboard.
The name should not be too general or offensive or religious.
In case you are finding any difficulties with the company name you can keep legal name different and brand name different.
Selecting the company name please book a domain. Prefer for .com extension or .in.
Share at least 4 name choices with the CA.
Let’s take a look at some important questions every entrepreneur must ask himself before he/she finally decide upon a business structure.