This Power point Presentation contains the complete information regarding Form of Business available in India. it provide the details of more than 5 form of doing business in india i.e. Proprietorship, Partnership, LLP (Limited Liability Partnership), Societies, Company i.e. One Person Company, Private Limited Company, Public Limited Company

1. Form of
Business Form of Business
An Opportunity to Achieve Dreams

2. “
In today’s world, where everyone is trying to become his own Boss by doing his business
and achieving his dreams. Thanks to the Government and its “Make in India” campaign,
which has relaxed the norms of doing business in India and provides numerous
opportunities to the new entrepreneur to start his own business? Government has eased
the process to start one’s own business.
In India, there are various form of business, which a person can opt according to his
needs, requirements and financial capacity for achieving his dreams. Therefore, it is very
important for a person to understand the form of business available to him.
2
Background!!

3. “
The various forms of business can be classified as follows:
1. Sole Proprietorship;
2. Partnership;
3. Societies;
4. Limited Liability Partnership {LLP}
5. Company:
◦ One Person Company;
◦ Private Limited Company
◦ Public Limited Company
3
Background!!

4. Sole Proprietorship!
This is the most simple and easiest form of doing business. The sole Proprietor (Single
Person) is the owner of the business.
There is no specified enactment to govern this form of business or running of sole
proprietors business. Sole Proprietor is solely responsible for all the acts and contracts
entered in the course of doing business and for Profit and Losses
But there are some restrictions in sole proprietorship concept, as the bank does not
feel safe and don’t prefer to provide loan to the owner and there is no concept of
funding in case of sole proprietorship as there is no specific law in India which govern
and control the sole proprietorship.

5. Features of
Proprietorship
1. It is NOT a separate legal entity.
2. Proprietor has unlimited liability.
3. Proprietor is personally liable for all the debts and
losses of the business.
4. Proprietor can sue or be sued in its own name.
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6. 6
Partnership!!
Under partnership form of business, 2 or more person enter into an agreement to
enter into a common business in order to share profits earned and shall be personally
liable for loss incurred.
It is governed by the Partnership Act, 1932 and registration of the firm is at the
discretion of Partners and the same is optional as per the abovesaid Act. However, a
registered firm can take legal action against the firm, partners or third party. It is easy
and inexpensive form of business as compared to Company form of business.
Partnership firm can be formed by drafting a Partnership Deed and business can be
immediately started subject to relevant sector conditions and local laws etc.

7. Features of
Partnership
1. There should be at least 2 persons to form the
Partnership Firm;
2. Every partner act as an agent of another partner;
3. Business of Partnership firm can be carried on by all
the partners or any one of them acting for all;
4. Every partner contributes his capital in the agreed
ratio;
5. Liability of each partner is unlimited;
6. Partnership Firm can be registered firm or un-
registered firm under the Partnership Act, 1932.
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8. 8
Societies!!!
Society is an association person which is formed for promoting art, charity, research,
religion, commerce or any other useful purpose.
The Society Registration Act, 1860 was passed for the registration of society in
order to give them the status of a corporation or a Legal person.
The Societies are formed for the benefit of a particular group or community. This type
of business earn profits for the benefit of the society.
Therefore the members elect their representative, who shall have the contractual
authority to do business for the welfare of society.

9. Features of
Societies
1. Easy formation;
2. Limited Liability of members;
3. Perpetual existence;
4. Social services.
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10. 10
Limited Liability Partnership!!!!
Now days, people are opting for Limited Liability Partnership for doing business due
to its special and unique features. In actual it is a combination of both Partnership
and Limited Company.
Limited Liability Partnership (LLP) is a separate legal entity. In general law a LLP is
regarded as a body corporate. It is managed by the LLP Agreement entered into
between the LLP partners.
Partners in LLP do not receive dividend, but enjoy direct access to the flow of income
and expenses.

11. Features of
Limited
Liability
Partnership
1. No requirement of minimum capital contribution
2. Minimum of two partners are required to form a LLP
3. No restrictions on the maximum number of partners.
4. Partner’s liability is limited to the extent of the agreed
contribution in the LLP agreement.
5. Minimum annual compliances as compared to
Company
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12. 12
Company!!!!!
This form of business is most preferred as they are incorporated as a separate legal
entity.
Therefore, the members are different from the Company and are not liable for the
acts of the Company. It has perpetual succession.
Member may come and member may go but the company goes forever, it continues
to exist even if all its members die.
1. One Person Company
2. Private Limited Company
3. Public Limited Company

13. One Person Company
One person company is an another type of Private Company having a sole member
and a nominee of the Sole member.
All the decisions are taken by the sole person and is solely liable for the acts. After his
death, the powers are transferred in the hands of the Nominee.
An One Person Company has to mention the word “OPC” in its name.

14. Features of
One Person
Company
1. Only a natural person who is resident in India and
citizen of India can only be appointed as member of
One Person Company.
2. Maximum turnover a One Person Company can make
is 2 Crore. Also the maximum share capital Rs.
50,00,000/-
3. Only one shareholder is allowed in One Person
Company.
4. It is a separate legal entity
5. Minimum number Director is 1.
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15. 15
Private Company
Private Company shall have atleast 2 members and maximum 200.
The members appoint their representative called as Director who shall look after the
day to day management.
Its shares can not be traded on any stock exchange i.e. BSE or NSE, nor issued to
public via Public Issue.
Companies Act, 2013 has granted a number of advantages and exemptions to
private limited companies in order to facilitate doing business in India easily and
effectively without much compliance and incurring much cost.

16. Features of
Private Limited
Company
1. Shareholders right to transfer shares is restricted
2. The number of shareholders is limited to 200
3. An invitation to the public to subscribe to any shares
or debentures is prohibited.
4. Minimum number of Director is limited 2.
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17. 17
Public Company
Public Company shall have minimum 7 members and no limit for maximum number.
The shares of a Public Company are freely transferable and the holders have easy exit
option.
Further shares of Public Limited Company can also be traded on stock exchanges like
BSE & NSE after complying the suitable provisions of the law and its share can also
be issued to public via Public Issue.

18. Features of
Public Limited
Company
1. The liability of its members is limited
2. Its shares are freely transferable
3. No limitation on maximum numbers of members.
4. Open invitation to public to subscribe to its shares is
allowed.
5. A public company is required to have at least three
directors.
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19. Thanks!
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