Four Types Of Corporate Business In A Corporate Form Of Business

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If you are new entrepreneur looking of doing a business in a corporate form of organisation, first you have to select a form of business organisation. There are four types of Corporate Business Forms available for entrepreneurs carrying business in India: Private Companies Public Companies Limited Liability Partnerships (LLP) One Person Companies (OPC) Selection of the appropriate form for your business depends on many factors such as the type of business, the number of persons involved, whether you want full control or prefer to share responsibilities, capital requirements, tax regulations and business liability. If you feel the situation is not simple, consult us about the legal aspects of your plans and about financial implications. PRIVATE…show more content…
Ownership transfer is governed by LLP agreement. Usually, it requires consent of all partners. Management Company is managed by Directors by taking decisions in Board Meeting. Companies Act & articles regulate management of a company LLP agreement describes how to manage LLP. It can also be managed like a company subject to agreement. LLP agreement is the basic document regulating management of LLP. Capital Capital of a company is sub divided into shares. Profit entitlement of based on the percentage of shareholding in the paid up capital of the company. Voting right also based on the shareholding Capital of LLP is contribution from partner. The contribution can be cash, tangible, intangible assets and immovable properties etc. Profit share need not be based on contribution. Voting right also governed by LLP agreement Future needs When you’re first starting out in business, it’s not uncommon to be “caught up in the moment.” You’re consumed with getting the business off the ground and usually aren’t thinking of what the business might look like five or ten-let alone three-years down the road. What will happen to the business after you die? What if, after a few years, you decide to sell your part of a business? Corporate form of structure is the most suitable form of Business for future requirements as it enables the owners to bring capital, change the ownership, expansion, consolidation, merger with other firms
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