Incorporations of company
1. One person company
- Shareholder and Director Must be citizen or resident in India
- Only One Director
- Nominee for shareholder is must
One person can incorporate “one person company” as corporate body
Main features of one person company is only one shareholder and one Director
2. Private Limited Company
- Register with MCA as body corporate
- Business governed by board of directors
- Limited liability of members
- Can not accept deposit from Public
Main feature of Private Limited Company is Minimum two directors and two shareholders required to incorporate body incorporate. Maximum number of members can be 200. Company cannot invite general public to subscribe its shares or debentures.
3. Limited Liability Partnership (LLP)
- It is body corporate and legal entity separate from its partners
- Limited liability of partner.
- Minimum two partners
- Partnership Act 1932 not applicable.
LLP is a corporate structure that combines the flexibility of a partnership and the advantage of limited liability. Owing to flexibility in structure and operation, it would be useful for small and medium enterprises, in general and for the enterprises in service sector professionals.