Private limited is a company which is privately held by small businesses and most popular legal structure in India. For the incorporation of a Pvt. Ltd company minimum of two and maximum of fifty members are required. Private limited means that the liability of the director of company is constrained and personally any shareholder is not liable to the amount of debt and his personal assets won’t be used to pay the amount of debt. The company itself is responsible for any kind of actions, Finances, and liabilities.
The Companies Act 2013 introduced this new concept of one person company registration. Such kind of entity is suitable for one person and single owners. One person company is the best option for those who do not like to work under other and want complete control over the complete. After limited company, it has become the most sought-after entity to start one-person company.
Through limited liability act 2008, limited liability partnership entities were introduced. The basic premise behind LLP entities was to offer easy incorporation process and limited liability to owners. LLP company registration offers the benefit of both private limited and partnership entities. The limited liability is the only difference between normal partnership and LLP company. It is the most preferred type of company for small businesses who are not willing to do huge funding.
partnership firm refers to a business structure in which two or more individuals register and operate a business according to the terms and conditions which are set in partnership deed. Partnerships are based on the partnership deed, which can be in written and oral form and it contains all the rules and regulations regarding the partnership firm. Partnership deeds are created on the judicial stamp paper of 2000 rupees to avoid future conflicts. Under the Partnership Act, 1932, partnership firms are registered with prior rules and regulations which must be mentioned in partnership deed.
Proprietorship company is the most common and simplest form of entity. A sole proprietorship is a type of business entity which is controlled and owned by one person. You don't have excess paperwork to start a sole proprietorship. But there are some important things you need to know before starting your journey in entrepreneur’s world. Sole proprietorship, according to the government of India is a “one-man organisation where a single individual owns, manages and controls the business.”
Section 8 companies are incorporated under section 8 of the companies act, 2013, and are formed to promote activities such as art, commerce, science, education, sports, research, social welfare, etc. These companies functions exactly like a limited company which includes all the rights and obligations that come up with a private limited company, however, section-8 registered companies differ from other companies.
Indian subsidiary company is the type of business entity in which a firm or share in any firm is owned by the foreign enterprises. In a broader sense it means that a company is Indian subsidiary when more than 50% of the shares are owned by the foreign firm. Many foreign companies have shown interest to start operations in India and ready to enter into the world’s fastest growing economy. Foreign entities prefer Indian subsidiary company registration because they can easily purchase the shares of any firm to enter the Indian market. Foreign entities save much of their time by directly investing in an established India company.
A producer company can be defined under the companies act 1956, which is involved in each and any one of these activities like farming, agricultural harvesting, pooling, marketing and exporting the primary produce. These companies are usually formed by the small businesses and small companies.
NBFC registration is a company registered under the Company Act 1956, engaged in the business of loans, finances acquisition of the stocks/debentures/securities, chit business and issuance of insurance. NBFC refers to the Non-Banking Finance Company registration which has the principle aim of receiving deposits under any scheme in one lump sum or by instalments and by way of contribution or any other manner. NBFC India come under the purview of the Reserve Bank of India (RBI).
Nidhi company is the type of Nidhi company and come under the preview of Reserve Bank of India. Nidhi Companies are formed under the section-406 of The Companies Act, 2013 and Nidhi Companies rules 2014. Nidhi company are much easier to formulate as compare to Nidhi Company. The objective of incorporating a Nidhi Company is to encourage savings and crediting money amongst its members. They are primarily engaged in the business of deposits and loans of its members.
Microfinance institutions in India are regulated under the RBI act of 1934. A microfinance company is a type of non-deposit of Non Banking Finance institutions they are authorised to provide financial services such as loans, savings, and insurance to small businesses, entrepreneurs and need people in society. The micro-financing institution provides very cheap credit and also very low financing cost. Since the growth of the sector was unstoppable and continuously rising.