Types of Business Entity - India

India

• Sole Proprietorship - liability is unlimited.
• Partnership - liability is joint and unlimited.
  • Active partners take part in day-to-day operations of the business, in addition to investing in it. Active partners are entitled to a share of the enterprise's profits.
  • Sleeping partners invest in the business and are entitled to a share of its profits, but do not participate in day-to-day operations.
• Limited Liability Partnership - Liability is limited
• HUF (Hindu Undivided Family) - businesses owned by a joint family belonging to Hindu religion. Even though Jain and Sikh families are not governed by the Hindu law, they can still form a HUF.
• Cooperative
• Family Owned Business
• Pvt. Ltd. (Private Limited Company): ≈ Ltd. (UK). May have 2–50 shareholders; shares are held privately and can not be offered to public.
• Ltd. (Public Limited Company): ≈ plc (UK)
• Public Sector Unit (PSU) - Alternatively known as Public Sector Enterprise (PSE). It may be public limited company listed on stock exchanges with major ownership by a state government or a central government of India or it may be unlisted entity with major ownership by a state government or a central government of India. Some of these entities are formed as business entities through special legislation, where these entities are governed by the statutes of these legislation and may or may not be governed by company laws like a typical business entity.
• Unlimited Company. A company, similar to its limited company (Ltd., or Pvt. Ltd.) counterpart, but where the liability of the members or shareholders is not limited.
• Incorporated Company