Different Types of Business Established in India

To establish a business in India, adherence to a set of fundamental requirements is imperative, ensuring legal compliance and operational integrity. Essentials include selecting directors and shareholders, issuing a prospectus when needed, and following corporate compliance procedures. These prerequisites form the foundational pillars upon which a company’s structure and operations are built.

Kindly refer to the chart provided for enhanced clarity and understanding-

Particulars	Private Company	Public Company	One Person Company (OPC)	Limited Liability Partnership (LLP)
Minimum Members	2	7	1	2 Partners
Maximum Members	200	Unlimited	1	No Limit
Minimum Directors	2	3	1	2 Designated Partner
Maximum Directors	15	15	15	NA
Resident Directors	1 Mandatory	1 Mandatory	1 Mandatory	1 Designated Partner
Transfer of Ownership	Ownership can be transferred	Ownership can be transferred	Ownership can be transferred to the nominee in the event of the death of the owner	Ownership can be tra2nsferred
Subscription of shares	Public subscription is not allowed	Public subscription allowed	Public subscription is not allowed	Public subscription is not allowed
Issue of Prospectus	Not Mandatory	Mandatory	Not Mandatory	Not Mandatory
Managerial Remuneration	No limit to the managerial personnel	Shareholders’ approval is required if remuneration payable is above limits	NA	Remuneration is based on the LLP agreement
Commencement of business/ operations	Declaration to be filed prior to commencement	Declaration to be filed prior to commencement	Declaration to be filed prior to commencement	Immediately after obtaining a certificate of incorporation
Legal Status	A private Company is a separate legal entity registered under the Companies Act, 2013. The Directors are liable for the default made under the act	A Public Company is a separate legal entity registered under the Companies Act, 2013. The Directors are liable for the default made under the act	OPC is a separate legal entity registered under the Companies Act, 2013. The Directors are liable for the default made under the act.	LLP is a separate legal entity registered under the Limited Liability Partnership Act, 2008. The Designated Partners of LLP are liable for the contraventions under the act
Governing Act/ Law	Companies Act, 2013	Companies Act, 2013	Companies Act, 2013	Limited Liability Partnership Act, 2008
Annual Statutory Filings	Annual statement of accounts and annual returns with Registrar of Company (ROC)	Annual statement of accounts and annual returns with ROC	Annual statement of accounts and annual returns with ROC	Annual statement of insolvency and annual returns with ROC
Annual Filings and Audit	Information Technology (IT) returns to be filed. Audit mandatory	IT returns to be filed. Audit mandatory	IT returns to be filed. Audit mandatory	IT returns to be filed. Audit mandatory in case turnover exceeds INR 40 lakhs or contributions exceed INR 25 lakhs

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