Introduction
The three main types of business entities in India are partnership firms, limited liability partnerships (LLPs), and private limited companies (Pvt. Ltd. Cos.).
- Partnership Firm
- LLP(Limited Liability Partnership)
- Private Limited Company
Partnership Firm
A partnership firm is easy to form and manage, but partners have unlimited liability.
LLP(Limited Liability Partnership)
An LLP offers limited liability and perpetual succession, but it is more complex to form and manage than a partnership firm.
Private Limited Company
A Pvt. Ltd. Co. is a separate legal entity from its owners and offers limited liability and perpetual succession. However, it is more complex to form and manage than a partnership firm or LLP, and it has a minimum capital requirement of INR 1 lakh.
Conclusion
The best way to choose the right business entity for you is to consult with a qualified professional, such as a chartered accountant or a lawyer.
The three main types of business entities in India are partnership firms, limited liability partnerships (LLPs), and private limited companies (Pvt. Ltd. Cos.).
- ● Partnership Firm: Easy to form and manage, but partners have unlimited liability.
- ● LLP(Limited Liability Partnership): Offers limited liability and perpetual succession, but is more complex to form and manage than a partnership firm.
- ● Pvt. Ltd. Co.: Separate legal entity from its owners, offers limited liability and perpetual succession, but more complex to form and manage than a partnership firm or LLP, and has a minimum capital requirement of INR 1 lakh.
Consult with a qualified professional to choose the right business entity for you.