Types Of Business Entities Startups Can Register

Following are the Types of Entities which Startups can register themselves as :

Sole Proprietary Concern :

Legal Entity : No Separate Legal Entity

Governing Act : No Specific Governing Act

Liability : Unlimited

No Of Members: One Person can form a Sole Proprietary Concern

Succession : Legal Heir

Dissolution: The Proprietor has the sole authority

Filing Compliance: Not Applicable

Filing of Forms for Creation of Charges [ in case of Loans Taken ] : No Legal Formalities.

Partnership Firm :

Legal Entity : Separate Legal Entity

Governing Act : Indian Partnership Act, 1932

Liability : Unlimited

No Of Members: 2 or more partners ,10 for banking , 20 for non-banking

Succession : Remaining partners and legal Heir of Deceased partner with consent of

other partners

Dissolution: With consent of partners

Filing Compliance: Not Applicable

Filing of Forms for Creation of Charges [ in case of Loans Taken ] : No Legal Formalities.

Limited Liability Partnership LLP :
 Legal Entity : Separate Legal Entity

Governing Act : Limited Liability Partnership Act ,2008

Liability : Limited

No Of Members: 2 or more partners

Succession : Remaining partners

Dissolution: With consent of partners

Filing Compliance: Financial statements are to be filed annually with Registrar of

Companies

Filing of Forms for Creation of Charges [ in case of Loans Taken ] : Required to file adequate forms with Registrar of Companies.

One Person Company [OPC] :

Legal Entity : Separate Legal Entity

Governing Act : Companies Act, 2013

Liability : Limited

No Of Members: 1 member and 1 nominee

Succession : Nominee (A company has perpetual succession)

Dissolution: Legal procedures for winding up or liquidation as the case may

Be

Filing Compliance: Financial statements are to be filed annually with Registrar of

Companies

Filing of Forms for Creation of Charges [ in case of Loans Taken ] : Required to file adequate forms with Registrar of Companies.

Private Limited Company :

Legal Entity : Separate Legal Entity

Governing Act : Companies Act, 2013

Liability : Limited

No Of Members: Max 200 members

Succession : A company has perpetual succession

Dissolution: Legal procedures for winding up or liquidation as the case may

Be

Filing Compliance: Financial statements are to be filed annually with Registrar of

Companies

Filing of Forms for Creation of Charges [ in case of Loans Taken ] : Required to file adequate forms with Registrar of Companies.