Company Registration in Coimbatore
Types of Business Entities
The type of business entity you choose will depend on three primary factors: liability, taxation and record-keeping.
A sole proprietorship is the most common form of business organization in India. It's easy to form and offers complete managerial control to the owner. However, the owner is also personally liable for all financial obligations of the business.
A partnership involves two or more people who agree to share in the profits or losses of a business. A primary advantage is that the partnership does not bear the tax burden of profits or the benefit of losses-profits or losses are "passed through" to partners to report on their individual income tax returns. A primary disadvantage is liability-each partner is personally liable for the financial obligations of the business. .
A Limited Liability Company is a legal entity that is created to conduct business. The Limited Liability Company is an separate legal entity, Like a person, the company can be taxed and can be held legally liable for its actions. The company can also make a profit. The key benefit of corporate status is the avoidance of personal liability. The primary disadvantage is the cost to form a company and the extensive record-keeping that's required.
What are the Types of Limited Companies?
The following are the Types of Limited Companies that can be registered in India
1. Private Limited Company
2. Public Limited Company
3. One Person Company
