Chronicle Finance

Entity Registration

There are different types of entities that any person can register in India based on the objective, nature of business, etc. It’s very important to select a right & optimal kind of structure to fulfil all your business goals.

 

The types of entities are:

 

Private Limited Company

  • Recognized as a separate legal entity.
  • Can issue both equity and preference shares.
  • Considered the most credible business structure.
  • Attractive to investors and capable of raising capital.
  • Eligible to issue Employee Stock Ownership Plans (ESOPs).
  • Ideal for fundraising and scaling the business.

Limited Liability Partnership

  • A suitable choice if fundraising is not a priority.
  • Offers more advantages than a traditional partnership firm.
  • Involves fewer compliance requirements compared to a Pvt Ltd company.

One Person Company

  • Designed for solo entrepreneurs who want a Pvt Ltd structure.
  • Not typically recommended if external funding is a goal.

Proprietorship

  • The simplest and most straightforward business form.
  • Best suited for individuals not seeking partners or investors.

Partnership

  • The most basic form of partnership with minimal compliance.
  • Suitable for small, collaborative businesses with shared ownership.