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.