Different form of business – Proprietorship, partnership, private, OPC, public limited and LLP

Form of business is the most important decision that an entrepreneur should take at the time of registration or before starting a business.

Based on the ownership, different form of businesses are allowed in India for registration.

A business in India can be organized in different forms such as private limited company, OPC, limited liability partnership or LLP, public limited company, sole proprietorship or partnership firm.

While taking a decision on business structure, you must understand its merits and demerits.

Proprietorships are tend to be small retail businesses started by a single owner. Partnerships are very similar to proprietorship business, except that instead of one owner, there are two or more owners. All most all law and chartered accountant firms are partnerships or proprietorships.

Finally there are companies. These businesses are owned by shareholders and registered with ministry of corporate affairs of India.

Following comparison of private, public, Limited Liability Partnership, OPC, proprietorship and partnership firm form of business will help you in understanding different type of businesses in India;