Types of Business Formations and Registration in India

Before going for registration of a firm, a person should understand the number of business formations and registrations in India.

 

Proprietorship Firm is a one man firm. It is not considered a company that means that the liability of the owner is unlimited .it is often considered a simple way to start the business. In this type of business, the person must have service tax registration certificate or value added tax certificate. Besides these requirements, the owner also has to open a current account in any bank. It is ideal formation for start ups.

 

Partnership Firm has same features as the proprietorship firm but it often involves two or more people or partners. The liability is also unlimited in the partnership firm. For registration it needs partnership deed with current account with any back. The VAT or service tax registration depends on the nature of the business 

 

Private limited company is the major business formation. From 2015, it has become easy to register the limited companies with INC 29 form. Earlier there were some requirements for minimum fund but now there is no need for having limited fund at the time of registration of the company. At the time of registration Sales Tax Registrations in Gurgaon of private limited company, two directors at least must be there with current account with any Indian back.

 

Limited Liability Partnership has mixture of private limited company and partnership firm features. At the time of registration it, it must have at least two partners. This formation was quite popular before 2015, because the cost of formation was less in limited liability partnership. The minimum requirement is only one lakh rupees as capital. One person company is same as private limited company and has same features as well.

 

 

The formation of Company registration consultant in Gurgaon  business and registration of business in any of the formations depends on the line of business and capital at the hands of promoters.  If the person has some idea and want to test them in the business of internet service provider, he could go for proprietorship firm registrations. The cost of registration is low and need only payment gateways and current account with any back.

 

If some people want to come together and test some idea, then they could go for partnership registration. Some of the person may want to continue their current jobs with other companies during the initial period of new business.

 

One can go for registration as private limited company if the idea on which business is being launched in already tested in the market and owners are looking for long term investments from investors such as angle firms.One person company registration is the best for the person who does not want to include others in the company but wants to get the company features.