Types of business entities in India

by Tax Home Tax Home Legal consultant

MSME registration in Delhi and SSI online registration in Delhi

While setting a business in India, the “company” is the commonly used word. Starting a company seems easy, but it’s actually not. In India, there are different types of entities to choose from. Here in this article, you will find the different types of business entities in India. One needs to register their business as the following business entities.

Sole Proprietorship

It is one of the most common business entities in India. It is a type of business, which is registered in the name of an individual. In Sole proprietorship firm, a single person is responsible for the entire business. Any loss or profit becomes the person loss and profit for a business owner.

Partnership

This type of business entity is similar to a partnership. The difference between a partnership and sole proprietorship is that the partnership firm has more than one person as the owner. Any profit earned by the company is shared between the partners and in case of lose, each of the partner is personally responsible.

Limited Liability Partnership (LLP)

LLP business entity was introduced in 2009, which is a separate legal entity from the partnership entity. Business assets are separate from the personal assets of the partner, so in case of loss, the personal assets of the partners are not put at risk.

Private Limited Company

It is the most sophisticate type of business entities in which a group of shareholder forms company. Every partner is allowed to have a variable number of shares. In Private Limited Company, the maintenance of financial record, transaction, annual reports, etc. is essential. An audit of financial reports is also essential for private limited companies

MSME/SSI Company

MSME stands for micro, small and medium enterprises and any enterprise that falls under any of these three categories can get the MSME registration. MSME companies are the backbone of the Indian economy. Companies can take a lot of financial advantages, if it is registered under MSME business.

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If you want to start your own business, then you can get your business registered under the above written entities. You can take the help of professionals at Tax home for the Sole Proprietorship, partnership, Limited Liability Partnership (LLP), Private Limited Company and MSME registration in Delhi. Tax Home is the leading provider of Sole Proprietorship, partnership, Limited Liability Partnership (LLP), Private Limited Company and SSI online registration in Delhi.