In India, there are various types of company registrations available, each with its own set of requirements and characteristics. The commonly known types of company registrations in India are as follows:
Private Limited Company: It is the most popular form of business entity for small and medium-sized enterprises. It requires a minimum of two directors and two shareholders. The liability of shareholders is limited to their shares, and the shares are not freely transferable.
Public Limited Company: This type of company is suitable for large businesses and requires a minimum of three directors and seven shareholders. It can raise funds from the public by issuing shares. The shares of a public limited company are freely transferable.
One Person Company (OPC): Introduced in 2013, OPC allows a single individual to incorporate a company. The sole shareholder acts as the director, and their liability is limited. OPCs are primarily meant for small businesses.
Limited Liability Partnership (LLP): It combines the features of a partnership and a company. It provides limited liability protection to partners and requires at least two partners. LLPs are commonly preferred by professionals such as lawyers, accountants, and consultants.
Sole Proprietorship: It is not a separate legal entity from the proprietor. The proprietor is personally responsible for all the liabilities of the business. It is the simplest form of business and is suitable for small-scale enterprises.
Partnership Firm: A partnership firm is an association of two or more persons who agree to share profits and losses of a business. It is not a separate legal entity, and the partners have unlimited liability.
Section 8 Company: Also known as a not-for-profit or non-profit company, it is formed for promoting charitable or social objectives. These companies are eligible for various tax benefits and exemptions.
Producer Company: It is formed by a group of individuals engaged in the production of primary produce or related activities. The main objective is to enhance the income and welfare of producers.
These are some of the common types of company registrations in India. The selection of the appropriate type depends on the nature of the business, scale of operations, ownership structure, and other relevant factors. It is advisable to consult with a professional or a company secretary for guidance on the most suitable registration type for a specific business.