Choose Form of Business
Sole Proprietorship
It is for small business with a low budget, like small shops may open their store as a proprietorship concern. It's a one-person show where all profits and loss go to the proprietor alone. Proprietorship business cannot be registered as such. However, all other registration may apply
Partnership Firm
An old form of business, traditionally it's not widespread and relevant. You can start a partnership firm by just signing a partnership deed. Even its registration is not mandatory, however, is necessary as an unregistered firm cannot recover beyond Rs. 100 from its debtors.
Limited Liability Partnership
Limited Liability Partnership is an advancement over the traditional partnership firms, with some characteristic features of a company, the limited liability. The process of incorporation of the LLP is complicated and at the same time, it lacks the potential to grow and is not preferred for funding
One Person Company
Now you can form a company with just one person as shareholder and director. You need another person to become your nominee. However, an OPC needs to convert as a private/public company in case its capital crosses 50 Lacs, and the turnover exceeds 2 Crores
Private Limited Company
A Private Limited Company is the most preferred form of business for Startup India, It is easy to incorporate and manage. Angel investor and any other long-term investor insist on a Company for making the investment. Further options for issuing ESOP is available in a company.
Section 8 Company
For a social, welfare, educational or charitable activity, you may start a company under section 8 of the Companies Act, 2013. Being an incorporated entity, it enjoys more credibility as a form of Non-Governmental Organisation in comparison to traditional forms such as society or trust.