Choosing the best company structure for your company is just as important as any other business activity. The proper business structure will enable your company to operate efficiently and meet your business objectives. Every business in India is required to register as part of the mandatory legal compliance. Let's first try to understand the different types of business structures in India before learning how to register a company.

Comparative List of Different Types of Business Structures in India

Here is a comparative list of the popular business structures in India. 

What are the types of business structures in India?

Let’s try and understand the types of business structures available in India. Here is a list of some of them:

Private Limited Company (PLC)

A PLC in the eyes of the law is regarded as a separate legal entity from its founders  It has shareholders (stakeholders) and directors (company officers). Each individual is regarded as an employee of the company. 

One Person Company (OPC)

Recently introduced in the year 2013, an OPC is the best way to start a company if there exists only one promoter or owner. It enables a sole proprietor to carry on his work and still be part of the corporate framework.

Limited Liability Partnership (LLP)

An LLP is a separate legal entity where the liabilities of partners are only limited only to their agreed contribution. An LLP is established under the Limited Liability Act, 2008 with the Registrar of Companies (ROC).

Public Limited Company

A Public Limited Company is a voluntary association of members which is incorporated under company law. It has a separate legal existence and the liability of its members are limited to the shares they hold.

You can choose what business structure suits your business needs best and accordingly register your business.

Other forms of business structures include Sole proprietorship, Hindu Undivided Family,  and Partnership firms. Please bear in mind, that these structures do not come under the ambit of company law.