MSME – Udhyog Aadhar: It is a 12digit identification number which the Govt. of India, provides to the registered business. The Udhyog Aadhar, is specifically given to the business entities only. With more than 42 million different business units in India, that deals with different manufacturing and services, it is easy for the government to makes schemes and give direct benefits to the businesses identified by Aadhar Udhyog number. Businesses that have Udhyog Aadhar can easily avail loans at subsidised rates, credit guarantee schemes and get various concessions.
Private Limited Company: This is the Legal structure for business Groups that need external funding from public and they provide shares in return to that Funds. This is the most commonly used legal structure, for the incorporation of the Company. The Board of directors, control the business in this structure. The PLC, can easily avail loans from the banks and in case of bankruptcy the personal assets of the Directors are not used to repay the debits.
Limited Liability Partnership: If anyone wants to run a business with partners, they can opt for LLP structure. The LLP structure, works till the partners do not require any external funding and in case they wish to get funded by public, they have to convert the company into private limited company. It is the easiest and cheapest way, to get business incorporation. The LLP structure, limits the partner’s liability to their investment in the company.
One Man Company: If any person wishes to have his own control on the business operations, he can choose OPC structure for business incorporation. Any person can register for OPC, if he has minimum capital of 1 Lakh. In case, the paid Capital exceeds to 50 lakhs he has to convert its OPC registration to Private limited company.
Sole Proprietorship: The Sole Proprietorship, is not a legal structure like partners and shares, the single individual is the owner of the business. He can start his business, with his own personal debits under his name. In this Sole Proprietorship, if the business fails to earn profit, the creditors can go for legal procedure and claims can be recovered from his personal assets. In case the owner dies, the business has the little chance of survival.
