Online Company Registration

Types of Business Entities 

The type of business entity you choose will depend on three primary factors: liability, taxation and record-keeping.

A sole proprietorship is the most common form of business organization in india. It's easy to form and offers complete managerial control to the owner. However, the owner is also personally liable for all financial obligations of the business.
  A partnership involves two or more people who agree to share in the profits or losses of a business. A primary advantage is that the partnership does not bear the tax burden of profits or the benefit of losses-profits or losses are "passed through" to partners to report on their individual income tax returns. A primary disadvantage is liability-each partner is personally liable for the financial obligations of the business.                             .

A Limited Liability Company is a legal entity that is created to conduct business. The Limited Liability Company is an separate legal entity, Like a person, the company can be taxed and can be held legally liable for its actions. The company can also make a profit. The key benefit of corporate status is the avoidance of personal liability. The primary disadvantage is the cost to form a company and the extensive record-keeping that's required. 

Types of Limited Companies

The following are the Types of Limited Companies that can be registered in India

1.      Private Limited Company

2.      Public Limited Company

3.      One Person Company

4.      Section 8 Companies - Non Profit Company

limited liability Partnership (LLP) : A hybrid form of partnership, the limited liability Partnership (LLP) , is gaining in popularity because it allows owners to take advantage of the benefits of both the company and partnership forms of business. The advantages of this business format are that profits and losses can be passed through to owners without taxation of the business itself while owners are shielded from personal liability.

Selecting a Business Entity

When making a decision about the type of business to form, there are several criteria you need to evaluate. on the following areas when they chose the business format for their company:

1. Liability.

2. Tax implications.

 3. Cost of formation and ongoing administration..

4. Flexibility.

5. Future needs.

(1) abridged prospectus‖ means a memorandum containing such salient features of a prospectus as may be specified by the Securities and Exchange  Board by making regulations in this behalf;

(2) accounting standards‖ means the standards of accounting or any addendum thereto for companies or class of companies referred to in section 133;

(3) alter‖ or ―alteration‖ includes the making of additions, omissions and substitutions;

(4) Appellate Tribunal‖ means the National Company Law Appellate Tribunal constituted under section 410;

(5) articles‖ means the articles of association of a company as originally framed or as altered from time to time or applied in pursuance of any previous company law or of this Act;

(6) associate company‖, in relation to another company, means a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company http://www.companyregistrationkerala.in/.