COMPANY/LLP/OPC REGISTRATIONS

Selection of business entity is among the first legal decision taken by an Entrepreneur while starting a new business. With the introduction of the Limited Liability Partnership Act and the Companies Act, 2013, more choices of business entities are now available. Therefore, it is important for the Entrepreneur or Promoter to understand the pros and cons of each of the business entity and choose the right one. Among the choice of For-Profit entities available like Proprietorship, Partnership, Limited Liability Partnership, One Person Company, Private Limited Company and Limited Company, a few are ideal for most Entrepreneurs. In this article, we compare those types of entities viz. Proprietorship vs Partnership vs LLP vs Private Limited Company vs One Person Company.
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Registration :-

Proprietorship

There is no formal registration for Proprietorship.

Partnership

Partnership can be registered or unregistered. Registration of Partnership is optional. If registered, Partnership is registered under the Partnership Act, 1932.

LLP

LLP will be registered with the Ministry of Corporate Affairs under the Limited Liability Partnership Act, 2008.

Private Limited Company

Private Limited Company will be registered with the Ministry of Corporate Affairs under the Companies Act, 2013.

One Person Company

One Person Company will be registered with the Ministry of Corporate Affairs under the Companies Act, 2013.

Public Limited Company

A Public Limited Company that is registered under the provisions that are prescribed under the Companies Act,2013.

Name of the Entity

Proprietorship

The Promoter’s choice of name can be used for the Proprietorship. No approval is necessary for using name; however, it is good to avoid trademarked names.

Partnership

The Promoters choice of name can be used for the Partnership. No approval is necessary for using name; however, it is good to avoid trademarked names.

LLP

The choice of name provided by the Promoter must be approved by the Registrar of Company. Only names that are not identical / similar to an existing company or LLP name and names that are not offensive or illegal would be allowed. The name of the entity will end with the words “Limited Liability Partnership” or “LLP”.

Private Limited Company

The choice of name provided by the Promoter must be approved by the Registrar of Company. Only names that are not identical / similar to an existing company or LLP name and names that are not offensive or illegal would be allowed. The name of the entity will end with the words “Private Limited Company”.

One Person Company

The choice of name provided by the Promoter must be approved by the Registrar of Company. Only names that are not identical / similar to an existing company or LLP name and names that are not offensive or illegal would be allowed. The name of the entity will end with the words “OPC” or “One Person Company”.

Public Limited Company

Public limited companies are corporate entities that are registered under the Indian Companies Act. They have a separate legal identity and are considered to be distinct from their owners. The owners of a public limited company are termed as the ‘shareholders’ or ‘stakeholders’ of the company.