India has been recognized as one of the fastest-growing economies in the world. The Indian economy now encourages a lot of foreign direct investment in the country. This has been a major factor for MNCs to expand their territories to the Indian market.

Every business entity in India is governed by various commercial laws. Choosing the kind of entity that an entrepreneur wants to run is a crucial first step. This decision has legal and financial implications, owner liability, and a compliance burden for business.

Due to the massive and diverse market of the Indian economy, it is necessary for a variety of business entities to operate differently within the country. The business entities carry various rights and authorities based on the legal entity type it chooses.

India has the following options for business entities that can be legally incorporated;

Sole proprietorship – This is a kind of entity that is owned and run by a single owner or proprietor. This single owner is the only bearer to all profits and losses of the organization. This kind of entity fails to attract people because of the absence of vast growing capital and limited labour.
Private limited company – This is a type of company that is considered as a separate legal entity under the companies law. These companies consist of a minimum of 1 to 50 shareholders. Such companies are given a tax waiver for the first 3 years of operation seeing the growth prospect of the entity. spyhunter 4 activation email and password
Public limited company – This is an entity that is registered under the companies act which says that it is a voluntary association of people who have limited liability and offer an interest to be seen as general. The shares of a public limited company are generally vast in number and are offered to the general public.
One-person company – These are similar to a private limited company, where the business is owned and managed by a person. This concept of one person company was not allowed to incorporate as a company in the earlier companies act of 1956, but in the 2013 act, this got the license of getting incorporated.
Partnership firms– A partnership is an association of two or more people to run a lawful business in the capacity of co-workers. The members of a partnership firm are called partners and they are liable for all the debts and income of the company. The profit and loss of a partnership firm are divided on the basis of a pre-agreed ratio which is mentioned in the partnership deed.
Joint venture company – This is a business arrangement involving two or more companies to accomplish a certain task. Each participant in a joint venture is responsible for the debts and losses. Most of the time a joint venture is just a temporary arrangement till a task is accomplished.
Societies, Trusts, and other Non-government organizations – These are non-profit organizations that function independently of any government for a social purpose or need.

It is imperative for the businesses to choose the right entity type to suit the business model, future expansion plans, etc.