Under our Indian Laws any entrepreneur has a variety of ways to constitute his/her business. Based on the business model, scale of operations and compliance matters they have to choose the one which suits them the most. In Venture Assist we guide our clients in seamlessly choosing their constitution of business by understanding their nature of business and promoters intent. The following are the available forms of constituting a business in India and Law governing the same.
| S.No. | Nature of Constitution | Governing Law* | Minimum Requirement |
|---|---|---|---|
| 1 | Sole Proprietorship | Income Tax Act’ 1961. | Min 1 Individual. |
| 2 | Partnership Firm | Indian Partnership Act, 1932. Income Tax Act’ 1961. | Min 2 Individual. |
| 3 | Limited Liability Partnership | Limited Liability Partnership Act’2008. Income Tax Act’ 1961. | Min 2 Individual. |
| 4 | Private Limited Company | Companies’ Act 2013. Income Tax Act’ 1961. | Min 2 Directors and 2 Members. |
| 5 | Public Limited Company | Companies’ Act 2013. Income Tax Act’ 1961. | Min 3 Directors and 7 Members. |
| 6 | Nidhi Company | Companies’ Act 2013. Income Tax Act’ 1961. | Min 3 Directors and 7 Members. |
| 7 | One Person Company (OPC) | Companies’ Act 2013. Income Tax Act’ 1961. | Min 1 Individual. |
| 8 | Section 8 Company as per Companies Act’2013 | Companies’ Act 2013. Income Tax Act’ 1961. | Not for Profit Motive. Min 3 Directors and 7 Members. |
| 9 | Hindu Undivided Family (HUF) | Income Tax Act’ 1961. | Husband & Wife and Family members. |
| 10 | Trust | Income Tax Act’ 1961. Indian Trust Act 1882. | An Author or Settlor of the Trust, a Trustee The Beneficiary The Trust Property or the Subject Matter of the Trust The objects of the Trust |
Note: *Shall include Other Acts as may be applicable to nature of business.