Incorporation is the process by which a company or corporate entity is formed. The corporation is the resulting legal entity that separates the firm’s assets and income from its owners and investors. Legaly in India we there is six type of business license and out of these being a foreign national any one can get business license as private limited company (PVT. LTD.), Public Limited Company (PLC), Indian Subsidiary company and 100% wholly owned subsidiary company and Limited Liability Partnership (LLP). However, being a resident of India any one can register their start-up as Proprietorship firm, LLP, PLC, One Person Company, Partnership Firm, privately owned company private limited.

Types of business license in India online.

Private Limited Company – online

A Private Limited Company (PLC) is one of the most common types of legal entity in India. PLCs are governed by the Companies Act, 2013 and require a minimum of two directors and two shareholders with one of the directors being an Indian resident and Indian citizen. A private limited company is a company which is privately held for small businesses or group of small individual. The liability of the members of a PLC is limited to the amount of shares respectively held by them. Shares of PLC cannot be publicly traded over exchange.

Limited Liability Partnership (LLP) – Online Registration

A Limited Liability Partnership (LLP) is a business structure that combines the benefits of a partnership and the limited liability of a corporation. An LLP continues to exist when partners come and go, and it can enter into contracts and own property in its own name. The LLP is a separate legal entity, but partners are personally liable only up to their agreed share of any debts or obligations.

One Person Company (OPC) – Private Limited Company

An OPC is a hybrid entity that combines the benefits of a sole proprietorship and a private limited company. It removes many of the obstacles usually faced when starting a new business. The only exceptions are that only “naturally born” Indian citizens who are also residents of India can incorporate an OPC, and that all provisions related to private limited companies apply unless otherwise specified.

Public Limited Company – online Incorporation 

A public limited company is a joint stock company. It is governed under the provisions of the Indian Companies Act, 2013 and  Indian Companies Rules, 2014. Public limited companies have no restriction on the number of members, but are formed by an association of people who voluntarily come together with a minimum paid up capital requirement. Transferability of shares have no restriction and it can invite public for subscription of shares and debentures. The term public limited is added to its name at the time of incorporation.

Partnership Firm – Online

Partnership refers to the coming together of two or more people to carry out a certain legal business. In the corporate structure of India, the Indian Partnership Act (1932), also referred to as Act, defines partnership as ” A partnership is an agreement between two or more people who share the profits of a business. Partnerships are most common in small businesses, where an individual has constraints on the ability, skill and capital to run the business, besides liability that can occur anytime during its operation.

Proprietorship

Sole proprietorship in India is a one-person business, with the owner managing, implementing and executing the business on his or her own. Although a sole proprietorship does not have to register with the government, it can be registered with the government to take advantage of tax benefits. In this type of business, only one person is responsible for all aspects of operations. The profits and losses of a sole proprietorship are shared by only one person owning the company or business.