How many Types of Companies/Ownership/Legal Entity exists?

Types of Ownership Structures

The ownership of the organization is decided on the basis of capital. This is to be provided by Individual, Partners, Cooperation and Govt.

The most common ways to organize a business:

 Sole Proprietorship

 Partnership

 Limited partnership

 Limited Liability Company (LLC) or Private Sector

 Co-operatives.

 Public Limited or Govt. Sector

For many new businesses, the best initial ownership structure is either a sole proprietorship or -- if more than one owner is involved -- a partnership.

 Sole Proprietorships

·         A sole proprietorship is a one-person business that is not registered with the state like a limited liability company (LLC) or corporation.

·         The business and the owner are one and the same. This means the owner of the business responsible for any business-related issues, such as profits, debts or court judgments.

E.g.( Camera Shops, Garages, Stores etc.)

Partnerships

·         Similarly, a partnership is simply a business owned by two or more people that haven’t filed papers to become a corporation or a limited liability company (LLC).

·         The partnership's owners are each personally liable for the entire amount of any business profits, debts and claims.

E.g.( Maruti- Suzuki, Bajaj- Dtsi etc.)

Limited Partnerships

·         Limited partnerships are usually created by one person or company (the "general partner"), who will make investments from others (the "limited partners").

·         The general partner controls day-to-day operations and is personally liable for business debts (unless the general partner is a corporation or an LLC).

·         Limited partners have minimal control over daily business decisions or operations and, in return, they are not personally liable for business debts or claims.

E.g. (Reliance, Tata etc.)

Corporations 

·         Corporation is an independent legal and tax entity, separate from the people who own, control and manage it. Because of this separate status, the owners of a corporation are not responsible for corporate profits & debts -- the corporation itself bears these issues.

E.g. (ST Maharashtra state travels corporation, NPCIL nuclear power corporation, NHPC national hydro power corporation etc.)

Cooperatives

·         Some people dream of forming a business of true equals -- an organization owned and operated democratically by its members. These grassroots business organizers often refer to their businesses as a "group," "collective," or "co-op".

·         For example, a consumer co-op could be formed to run a food store, a bookstore, or any other retail business. Or a workers' co-op could be created to manufacture and sell arts and crafts.

E.g. (Co-operative Banks, Society, Clubs etc.)

Public Limited or Govt. Sector

·         It is the sector which is completely owned by the Govt. of State or Central. The main motive of the sector is to produce and supply goods on public requirement.

·         The govt. is responsible for all the profits and loss of the company, it has to pay all the debts by its own govt. fund.

E.g. (MSEB Maharashtra electricity board, SBI state bank of India, BHEL bharat heavy electrical ltd etc.)