As per the Rules and regulations by our Government; it is compulsory for every business to register and declare themselves as a part of the mandatory legal compliances.
The most important step is to select the right business structure to register your company. Your business structure will be dependent on your requirements and your future plan. Make sure to consider all your plans and then select the business structure under which you want to register your company.
Types of Business Structure in India:
- One Person Company (OPC)
OPC was introduced in 2013 by the Government of India. This is a good way to register a company for those who are the single owner of a business. This allows sole proprietor to register a firm an become a part of corporate framework.
2. Limited Liability Partnership (LLP)
Under LLP the partners will have the liability limited only as per the agreed contract or contribution.
3. Private Limited Company
If you have two directors and two share holders and are not planing to launch an IPO of your company soon then a Pvt Ltd company will be the right choice.
4. Public Limited Company
You will need minimum 3 directors to declare your company as Public Limited. If you want to sell your shares in stock market then this is the right option.