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Starting a Business ? Which type of Entity should you choose

Writer's picture: Dugain AdvisorsDugain Advisors

Updated: Oct 16, 2024


When starting a business in India, it's important to choose the right legal structure. The most common types of business entities in India include:

  • Limited Liability Partnership (LLP)

  • Private Limited Company

  • Public Limited Company

  • Partnership Firm

  • Sole Proprietorship

  • One Person Company

Each entity has its own registration requirements and legal obligations. Understanding these differences is crucial when deciding how to structure your business.


Registration Requirements


The registration requirements vary depending on the type of business entity:

  • LLPs, Private Limited Companies, and Public Limited Companies must register with the Ministry of Corporate Affairs (MCA).

  • Partnership Firms do not require registration with the MCA, but a partnership deed is recommended. Registration with the Registrar of Firms in the respective state is optional.

  • Sole Proprietorships do not require any registration with the MCA. However, registration for GST, trademark, and PAN is necessary.

  • One Person Companies must register with the MCA.


To view the blog in presentation form check the attached file as presented by our legal associate, Advocate Reema Jain, at Delhi on April 2022. The seminar focused on "Entrepreneurial & Self Employment Opportunities for Ex Army-men," emphasizing skill development and access to financial resources. This is crucial for leveraging the disciplined and resilient nature of veterans to contribute to economic growth and personal reintegration into civilian life.




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