1 / 8

Different Form Of Company Structures In India - An Entrepreneurs Can Choose From

Organization comes in various forms but choosing the right vehicle is very important for any business owner. This is so because there are a lot of benefits that come when you choose the correct structure because businesses have an infinite life and are perpetual in its scope and operation. There are primarily 3 types of company structures that are popular and preferred by most business houses.<br><br>Start One Person Company (OPC).<br>Start LLP Company.<br>Start Pvt. Ltd. Company.<br><br>Web: https://www.royaltaxsolutions.com/

royaltaxsolution
Download Presentation

Different Form Of Company Structures In India - An Entrepreneurs Can Choose From

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Different Form Of Company Structures In India An Entrepreneurs Can Choose From

  2. Objectives And Goals of a Start-up There are various forms of business an entrepreneur can choose from. From the eyes of the entrepreneur and the legal advantages, there are various business structures that are made for them. Although the ideas that these businessmen bring to the table are excellent, most of them lack the legal knowledge of how to establish the company This is vital for startups and also for all the startup and new entrepreneurs as having basic knowledge will be beneficial for setting up their business. It will also save a lot of resources (financial).

  3. Every organization that is registered or not registered works under a legal entity and it is the selection of the entity that has a lot of benefits for the organization. Various Types Of Businesses • There are primarily 3 types of company structures that are popular and preferred by most business houses. • Start One Person Company (OPC) • Start LLP Company • Start Pvt. Ltd. Company

  4.  Choosing the Right Form of Business Choosing the right form of business is like choosing the right vehicle for business. So making the right choice for which forms of business is essential for the long run of any business. Most of the startups choose the private ltd model of business while there are a lot more different types of business models that are available which have benefits and advantages. However one should always weigh the pros and cons that are concerned with each type of business.

  5. Characteristics / Advantages of Private ltd Company This is the favored form of business which is adopted by most of the organizations because of the advantages it provides to its shareholders (limited liability). Other advantages of a private limited company are as follows:- • No. of members: The minimum number of members required is 2 and a maximum of 200 according to the provision of the Companies Act 2013. • Limited Liability:  The liability of the owner and shareholder is limited. This means that the participants are liable and can be held responsible for the shares they have pledged. • Paid Up Capital: The minimum amount is Rs 1 lakh or higher but can vary from time to time. • Name: It is important for Pvt ltd company to use the tag at the end of the companies name.

  6. Advantages of One Person Company (OPC) Independent/Separate Entity: According to the law, OPC companies are separate legal entities and have perpetual succession. Limited Liability: As with Pvt. Ltd. OPC also has limited liability and shareholders and members are only responsible for their investment. Legal Status and Recognition of Your Business: OPC is a very popular form of business and it enjoys a corporate status.

  7. Characteristics of Limited Liability Partnership (LLP) No Paid Up Capital Required: There is no minimum capital requirement for LLP and it can be formed by any amount. Low Registration Cost: The cost of incorporating LLP is much lower than incorporating Pvt. Ltd. or an One Person Company (OPC). Taxation Benefit: For income tax purposes LLP is treated as equal and at par with partnership firms. And this LLP is payable for income tax and its partners in A Limited Liability Partnership (LLP) are not to pay any tax.

  8. The above type of businesses are the most common business structures that can be formed by entrepreneurs. Although each and every type has its advantages and disadvantages, it is advised to consult a professional tax consultantin your area before you finally arrive at your decision. CONTACT US 4/4, Poddar Nagar (Beside South City Mall) Kolkata, 700068 +91 801 370 1738 /+91 987 465 1033 royaltaxsolution2017@gmail.com info@royaltaxsolutions.com

More Related