Updated on April 08, 2025 04:55:48 PM
Businesses in India are classified at different levels as per the companies act 2013 on the basis of members and size. The majority of businesses in India are owned by small and medium enterprises and fall under the MSME act. In order to promote such industries, these businesses are classified as micro, small and medium entities. In addition, companies can be categorized according to their ownership, liabilities, and listing status. The following covers the different categories of businesses depending on various criteria.
Company Registration Certificate [Sample]
Company registration is a process of incorporating a business or start-up in India. The companies/start-ups are registered under the Companies Act 2013. According to the guidelines of MCA, it is mandatory legal compliance for all businesses to have a certificate of incorporation. The advantage of incorporating a company is that it is treated as a separate legal entity and stakeholders' liabilities are limited.
Businesses in India are classified into various types of the company on their size, share, and nature. Let's look into the following kind of companies in brief.
MSME is an acronym for Ministry of Micro, small and medium enterprises. Such businesses usually have low share capital.
An unlimited company means a company is not having any limit on the liability of its members.
The limited company requires a minimum of three Directors and has no limit on the maximum number of shareholders. The stakeholders are only liable for the amount they have put into the company. The MOA limits the liabilities of such companies.
Charitable NGOs usually prefer such companies, where guarantors hold liabilities and stakes in the company. Who agrees to contribute a nominal amount in case of winding of a company.
Public limited companies are listed on the Stock exchange market, where anyone can buy their shares freely.
Private stakeholders usually own unlisted companies, and the general populace cannot bring their stocks as such companies are not listed on the stock exchange market.
Holding companies are entities created to buy the shares of other companies and act as owners.
A subsidiary company is an entity that is owned by other enterprises or operates under a parent company.
Under the companies act of 2013 government has introduced various business structures for entrepreneurs to register their companies. Each form has its applications and unique features to promote business depending upon the nature of the business.
Such as:
A private limited company is a kind of business where ownership of the company stays with private stakeholders. However, the company is termed as a distinct legal entity from its stakeholders, and shares limit the liabilities of its stakeholders as per MOA.
Private limited company incorporation is one of India's most preferred business structures. Almost 80% of companies in India are registered as private limited.
A public limited company is a business structure incorporated under the companies act 2013. A minimum of 7 members and three directors are required to register a public company in India. A public company is listed under the stock exchange, allowing its shares to be brought by anyone freely.
Limited Liability partnerships are a new concept introduced by Government. LLPs are a hybrid business structure that provides the benefits of a private limited but the flexibility of a partnership firm. A minimum of 2 members are required to register an LLP in India. The liability of its members is limited by share.
One person Company (OPCs) was introduced under the companies act 2013. Only a single member is required to start such a company. The concept was presented to promote start-ups in India. The advantage of OPCs is that it is treated as separate legal entity. Thus, the liabilities of the owner are limited.
A company is deemed a section-8 company when it registers itself as a non-profit organization. Section-8 companies are driven by the concept of social cause and promote subjects such as sports, religion, art, music, and culture.
In such a business, the liabilities of shareholders are unlimited, and it's highly unrecommended by professionals. Two or more members are required to register a partnership firm, and both members are liable for the firm's liabilities.
Sole proprietorship firms are businesses where only one person manages the whole company. The difference between an OPC and a sole proprietorship is that the owner's liabilities are not limited.
Producer companies are a hybrid form of limited company and cooperative societies. It requires 10 or more individuals or a group to form a producer company. These entities can register either as a public limited or a private limited.
Nidhi companies are deemed as Non-banking financial sector companies which work on the principle of mutual benefit. Such companies are famous in the southern Indian state of Tamilnadu. Nidhi companies are allowed to borrow and lend money from their members only. Such companies must incorporate the word Nidhi limited with their names.
Here is the list of mandatory annual compliance to be followed by the company.
Complete Digital
Process
Free Expert
Assistance
Best Price
Guarantee
4.9/5 Google Rating
(350 Reviews)
Money Back
Guarantee
Simple & Fast
Process
Per the companies act 2013, there are seven types of business structure/ company registration in India.
There is no limit on the minimum capital contribution required for LLP company registration.
To start a private limited company minimum of 2 members are required, and a maximum number of members can go up to 200 crores. The most significant difference between OPCs and a private limited company is that only one person is required to register an OPC.
The minimum number of directors required is 2; however, in the case of a one-person company, only one director is required.
Choosing the right business structure from the different company structures is crucial for the business. Hers is an insight into what questions an entrepreneur should ask before incorporating a company.
Call us on
+91 9821113117
[Mon - Sat, 10am - 7pm]
Write to us
8th Floor, Bhandari House - 91, 804,
Nehru Place, New Delhi 110019
Reliable
Affordable
Assurity
They've been very helpful in our registration with ICEGATE. It was a small thing with a small amount paid which somehow escalated to a very painful procedure. Never did they say "You've only paid so much. It's too much effort for us.".
Very pleased with their service. Prompt, professional and great communication. Definitely recommend. Special mention for Ms. Razia - she handled our case.
Professional Utilities is fully professional in their work, Rates are too low and genuine. Services and satisfaction are high so I highly recommended Professional Utilities.
They are one of the most genuine and reasonable people. I applied for lmpc certificate through them and they charged me a very nominal amount as compared to what other firms asked .
