Many people prefer doing individual businesses rather than any kind of partnership to keep complete control on all of their business operations.
It can be simply defined as the state or right of owning a business or possessing a respective property individually and such type of business set-up is known as a ‘Proprietorship Firm'.
In this type of business any single person runs the whole business operations and hence, it is also termed as a ‘Sole Proprietorship’ i.e. that single person completely owns the business, manages it and controls several respective operations single-handedly.
Partnership Firm is an alliance of two or more respective parties who have collectively decided to carry out their business tasks jointly as per their licensed Partnership Deed Agreement to gain profits.
In partnership firm all the respective parties have to share their liabilities together which unburdens various risks factors like losses. Moreover, profits are shared equally as per their mutual understanding.
When Partnership is formed, it becomes easy to reach ones desired goal as more expertise, assets, resources and funds are combined which speeds up the working process.
Limited Liability Partnership
Limited Liability Partnership is an equilibrium which provides several advantages of conventional partnership and yet limits the personal liabilities of the partners and hence, it has become quite popular in consulting businesses, CA, recruiting firms etc.
Under the Limited Liability Partnership Act, 2008 - it is regulated as the contractual agreement between the partners.
One Person Company
One Person Company is commonly abbreviated as OPC which has a single share owner who possess 100% stakes of the respective company and thus, it allows a sole person to manage all business affairs on its own in order to reap several advantages.
It is pivotal to understand that OPC is classified as a Private Company by Section 3 for all the legal affairs with a sole member. One Person Company Registration and its operations are controlled by the Indian Companies Act, 2013.
Moreover, in OPC it is important and compulsory to appoint a Nominee, who will run the business in case the owner is unable to handle business or is dead at any point of time.
In India, Private Limited Company is one of the most famous and admired type of business entity. Creating and registering a Private Limited Company can help one to set up a large or small businesses which can reap profits and benefits to any extent.
Also, the shares represent the ownership of a company which can be easily transferred or shared to any other foreign or Indian legal individual or organisation. The entrepreneur can also alter directorships without any inconvenience and can easily make money and transfer ownerships as he/she wills.
Basically, a Private Limited Company is a registered corporate structure which can own a separate legal entity from its owners in business which is incorporated under the Companies Act of 2013 and is governed by MCA i.e. Ministry of Corporate Affairs.
In India, from 26th Jan, 2018, the MCV has revamped the process of Company registration which enables to finish registering a company within 10 -15 business days and the total process can be managed online effortlessly.
The Public Limited companies are formed, to satisfy the needs of the huge business capitals which are generally raised from the public i.e. the shares of the public. The Public Limited Company offers the general public to have Shared Stocks that have limited liability. This implies that the buyers can’t be held responsible if any losses are incurred more than the amount they have contributed to the shares. The basic requirement to form a public company is to have at least seven shareholders and a minimum of three directors.
Section 8 Company
Basically, a company which is registered under several humanitarian entities like – charity, religion, environment protection, promotion of Sports, education, science, commerce, arts etc. are well known as ‘Section 8 Company’.
All the respective activities of the company gain some profits or income which are used to benefit the charitable purpose for which it was formed.
Section 8 of the Companies Act, 2013 enables registration for the charitable company and also allows to enjoy several relaxations and exemptions.
These charitable companies are termed as a non-profit organisation in which the Act does not hinder the company to reap profits but it rather restrains giving away profits among their respective members.
Nidhi itself means ‘Treasure’ which is a type of company that has been assimilated as a Nidhi with the target of nurturing the habit of thrift and savings among its members. In this type of Company, deposits are received i.e. borrowed, and are even lent to the respective member as required to reap mutual benefits. Nidhi Company complies with the rules of Chapter XXVI of Companies Rules, 2014.
In other words, the Nidhi Company can be referred to as a ‘Mutual Benefit Society’ which is notified by the Union or Central Government in our Indian Financial Sector.
Trust can be simply defined as a depositary arrangement that permits a trustee or a third party to hold assets on behalf of the beneficiary or beneficiaries as per their existence. And a trusted company can be termed as a discrete corporate entity that can be owned by any law firm, financial institution or bank, or even by any independent partnership.
A gamut of services is performed by the Trust Companies which are related to asset management and investment. They also provide safekeeping services as per the requirement. Moreover, the beneficiaries can have speedy access to these assets as compared to the will process.
Society is simply a large organization that is formed to carry out any distinct activity or purpose which can also be distinguished by social relations between an independent person who might share a unique culture and organization.
It can be termed in other words like it is an addition of distinctive relationships among its constituents of its members.
Moreover, Societies setups a sample of behavior by deeming specific speech or actions that whether they are unacceptable or acceptable in the society, which is termed as ‘Societal Norms’ which can undergo any changes as per their requirement.
Subsidiary of a Foreign Company
Foreign Subsidiary Companies are those, in which 50% i.e. half of their Equity Shares are owned by a Foreign Company which is assimilated in any other nation. Moreover, in such situations, the foreign companies are termed as a Parent Company or the holding company. The main thing is that – A company itself must be integrated in India if any company wishes to be a foreign subsidiary company in India irrespective of the parent company.
A Branch office is an office where business-related processes are carried out other than the main office which may consist of several divisions as per the business requirements like Accounting, Marketing, Human Resources, etc. A branch office is managed by a Branch Manager who updates all about their official work which is carried out to a respective member of the management at the main office.
A branch office proves very beneficial as it allows close connection to the clients by using the client-specific administrative considerations.
Liaison offices are crucial offices, also termed as ‘Representative Office’ which are established to understand and explore the investment and the business climate. These offices can take up several liaison activities like industry, trading, or commercial activities indirectly or directly. Liaison offices also function as a communication means between the Parties in India and the respective Head Office.