Are you considering setting up your Business ? Here are the popular types of entities that can used for your Business!!


Advantages of Registering a Private/ Public Limited Company


Improves Credibility:Improves credibility by being registered as a corporate entity.

Separate Legal Entity:Establish separate legal identity and pursue multiple opportunities

Limited Liability:Protect personal asset of promoters with limited liability protection.

Attract Funding:Syndicate both equity and debt funds to have an optimal capital structure

Foreign Investment:Accept foreign direct investment (FDI) under the automatic route.

Team Building:Offer stock ownership ESOP plans to attract and retain talent

Have an Exit Plan:Through sale or dilution of equity of the company

Before the introduction of one Person Company (OPC), a minimum of two persons were required to start a Company or LLP. Now a single entrepreneur can establish a corporate business entity with following advantages

Advantages of Registering a One Person Company


Easy Incorporation

Single Promoter:OPC can be registered and managed by a single promoter easily

Lesser Compliances:Compared to private limited company. OPC needs fewer compliances

Limited Liability:Protects personal assets of the promoters with limited liability protection

Improves Credibility:Improves credibility by being registered as a corporate entity.

Separate Legal Entity:different and distinct from the Sole Director.

Incorporation of Limited Liability Partnership

LLP is increasingly being preferred by SMEs in India. LLP do not have a minimum capital requirement and is not required to have its accounts audited unless the annual sales turnover exceeds 40 lakhs or capital contribution exceeds 25 lakhs.

Advantages of Registering a LLP


Easy Incorporation

Capital required:LLP has no minimum authorized or paid up capital requirement.

Lesser Compliances:Audit is not required for LLPs , subject to revenue and capital contribution

Limited Liability:Protects personal assets of the promoters with limited liability protection

Improves Credibility:Improves credibility by being registered as a corporate entity.

Separate Legal Entity:different and distinct from the Sole Director.

Unlimited Partners:LLP needs a minimum of 2 partners. No limit on maximum partners

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