Good To Know: Heres A List Of Different Types Of Companies Registered In India

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Good To Know: Here's A List Of Different Types Of Companies Registered In India

In India, there are a total of seven different types of companies so here is a detailed rundown of these companies and how they operate.

According to the Experts, nearly seven different types of companies are registered in India. One of them is Private limited companies, which are ideal for enterprises that require private entity registration. To protect their assets, a group of shareholders divides the liability among themselves in this form of business. The net capital is equal to the total sum of all the shares owned by every company member. In addition, the members' personal and corporate assets are treated separately, providing greater safety and security. Shares in this firm are privately held and cannot be brought or sold publicly.

    • At least 2 or 15 directors are mandatory.
    • One director should be an Indian resident.
    • There should be at least two shareholders.
    • A permitted capital fee of at least ₹1 lakh is also required.
    • An Indian office address is required.

Public Limited Company

In this company, the general public can invest and own shares. There is no limit to the number of shares sold or traded in such businesses. Since the company shares are listed on the stock exchange, the public can easily buy and trade them. Before beginning business operations, such businesses must get a certificate of registration with the RoC.

  • A minimum of three directors is required.
  • One director should be an Indian resident.
  • A minimum of seven stockholders is required, with no upper limit.
  • A permitted capital fee of at least ₹5 lakhs is required.
  • An office address registered in India should be provided.


In a partnership, operations are managed by partners who have agreed on their role and profit share. In a verbal contract is known as the partnership deed, the tasks, duties, powers, and number of shares are clearly outlined. The Indian Partnership Act of 1932 covers several types of businesses.

As long as they have a legal and registered partnership deed, partnership firms can operate with or without a license. Most partnerships, however, do register since it affords them additional rights and benefits.

The following are the requirements for forming a partnership:

  • A minimum of two and a maximum of ten partners are required.
  • A registered office address in India is mandatory.
  • A registered partnership deed signed by all partners is required.

Limited Liability Partnership

The limited liability partnership, sometimes known as an LLP, is a modern company in India. It has its legal advantages, allowing the entrepreneurs to segregate between personal and company assets while also providing limited liability protection. The liability of every partner in an LLP completely relies on the percentage of shares.

The following requirements must be completed to form an LLP:

  • A minimum of ₹1 lakh in authorised capital is required.
  • One of the authorised partners must be a resident of India.
  • At least two partners are required, and there is no limit on the total number of possible partners.
  • If the remainder of the partners is corporations, at least one individual partner is required.
  • Share capital is not needed since each partner has agreed to commit.

One Person Company (OPC)

OPC is the newest addition to the several types of company registration available in India, and it is ideal for small firms. It is the greatest choice for entrepreneurs who want to manage their firms single-handedly.

Entrepreneurs benefit from liability protection without needing to associate with anybody else because the OPC has its legal status. An OPC is simple to implement and regulate because it only requires one person. the company should follow the requirements:

  • A minimum of ₹1 lakh as authorised capital is required.
  • The person must be an Indian citizen and a permanent resident of India.
  • During the incorporation process, the promoter must appoint a nominee.

Sole Proprietorship

A sole proprietorship is one in which a single person manages the business. The company and its owner are treated as a single entity, and earnings and losses are their responsibility. Because the owners' names appear on the registration, they will also appear on tax filings and accounting reports, resulting in infinite business liability.

It is, nevertheless, the simplest type of business to start and run. Home company entrepreneurs prefer this because it does not require significant investment or compliance.

Section 8 companies, sometimes known as non-profit organisations (NPO), work for philanthropic objectives. The goal is to promote the arts, science, literature, education, care for the most fortunate, and safeguard the environment. Furthermore, any earnings earned by them are spent to fulfil these goals, and the members do not get dividends.

Subsequently, the companies are further differentiated based on various factors.

  • Based on their size, they are differentiated as micro, small, and medium companies.
  • Based on the total number of members, they are classified as a private, public, or one-person company.
  • Depending on the control method, they are differentiated as holding companies, subsidiary companies, and associate companies.
  • Based on the liability, they are classified as limited by shares or by guarantee or unlimited company.
  • Based on the capital, they are classified as listed companies or unlisted companies.

Also Read: Here's Everything You Need To Know To Register A Company In India

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