What are the Various types of Businesses in India?

India is an evolving market with extensive scope and opportunities for both Indian and foreign investors. The Government of India offers various types of Business in India which are entrepreneurial friendly policies which makes invasion and growth of businesses in India easier.

Before setting up a business it is very significant for the entrepreneur to draft a blueprint of his business. This blueprint is a business plan which aids as a tool for planning. It is a written document which depicts the entrepreneurial vision, mission and strategy.

Every business plan must comprise the below given essentials:-

• Cover page
• Contents Table
• Summary
• Development and Manufacturing
• Requirement of Resource
• Format and Presentation
• Writing and Editing

What all Types of business entities can be formed in India?

1. Private Limited Company
2. Public Limited Company
3. Unlimited Company
4. Sole proprietorship
5. Joint Hindu Family business
6. Partnership
7. Cooperatives
8. Limited Liability Partnership(LLP)
9. Liaison Office
10. Branch Office
11. Project Office
12. Subsidiary Company
13. Private Ltd Company

Private company:

Private Company is a type of company owned by an individual having a minimum of 2 and maximum of 50 members. Private Company limits the right of the shareholders to transfer their shares.

• Private Company does not offer public to subscribe to its share capital
• Minimum paid up capital of INR 1 lakh or such a greater amount which may be prescribed from time to time.

Public Limited Company:

Public LimitedCompanyallows the shareholders to transfer their shares having a minimum of 7 members, and for maximum there is no limit.

• Public Limited Company offers the general public to subscribe to its shares
• Must have a minimum paid up capital of INR 5 lakh or such a greater amount as may be agreed from time to time.

Unlimited Company

Unlimited Company is a type of business organization under which the liability of all its members is indefinite. The personal assets of the members can be utilised to settle the debts. It can at any time get itself re-register as a limited company under section 32 of the Companies Act.

Sole proprietorship

Sole proprietorship is a kind of business entity where an individual handles the entire business organization and operations. He is the single one recipient of all profits and bears all loses. There is no distinct law that governs sole proprietorship.

Joint Hindu Family

Joint Hindu Family is a type of Company where the members of a family can only own and manage the business. It is governed by Hindu Law and is binding on the members of the family.

Partnership

Partnership is relation between persons who have settled to share the profits of the business carried on by all or any one of them acting for all. It is governed by the Indian Partnership Act 1932 where all the partners have distinct liability.

Co-operatives

Co-operatives is a form of voluntary organization, wherein the members work together for the promotion of the interests of its members. There is no limitation with regards to the entry or exit of any member. It is governed by Cooperative Societies Act 1912.

Limited Liability Partnership

Under LLP, the liability of at least one member is unlimited whereas rest all the other partners have certain limited liability. The liability in LLP is limited to the extent of their contribution in the LLP. Unlike Indian partnership Act, this kind of partnership does not get concluded by the death or insolvency of the limited partners. It is a recent kind of business practiced in India and is governed by Limited Liability Partnership Act of 2008.

Liaison Office

Liaison Office is a kind of office which is set up to understand the nature of business and investment environment. It is banned to indulge in any kind of commercial/industrial/trading activity and its role is restricted to aggregation of information and advancement of exports/imports. It has to preserve itself out of inward remittances received from the parent company.

Branch Office

Foreign companies which are settled abroad and deal in manufacturing and trading activities abroad are allowed to set up branch offices in India for numerous purposes like rendering of professional and consultancy services, export/import of goods etc. RBI is the governing body that permits foreign companies for setting up branch offices in India.

Project Office

Foreign companies usually set up temporary project offices in India for carrying out activities related to that project that is focused or aimed.

Subsidiary Company

Business Sectors where 100% foreign direct investment is allowed there foreign companies can set up wholly-owned subsidiary in India.

Statutory bodies involved in setting ups a business

• Ministry of Corporate Affairs
• The Partnership Act 1932
• The Chartered Accountants Act 1949
• Companies Fund Act 1951
• The Companies Act 1956
• The Chartered Secretaries Act 1980
• The Companies Amendment Act 2006
• The Environment Protection Act-
• RBI
• SEBI