There are multiple types of business registration you can choose from according to the stage of your business. When starting a business, you should choose the type of registration which is best for your business:
Types of Business Registration
- Sole Proprietorship
- Partnership Firm
- Private Limited Company
- Limited Liability Company
- Limited Liability Partnership
Sole Proprietorship: –
It is the best to start with, as there are fewer headaches and formalities when starting a sole proprietorship business. You Just need the MSME Registration certificate and GST Registration to start with a sole proprietorship.
Partnership firm: –
It is necessary if you are doing business with some of your friends or in collaboration with any other person who is helping you in running of your business by taking any department of your business and helping you in the growth of your business
Private Limited Company: –
When starting a fully structured business you need to have a Private limited company. It will help you in scaling your business.
Limited Liability Company (LLC): –
It’s the best if you want to get protected against any of the loss which happens to your business and you don’t want to lose any of your assets
Limited Liability Partnership (LLP): –
This is similar to a partnership but more structured. But in this particular business type, some or all of the partners have limited liability. It is a combination of Private limited and Partnership firms. It was introduced under the Limited Liability Partnership act 2008
Conclusion:
When starting a business, you should choose the type of registration which is best for your business. You can change it or upgrade it later also. If you are running a small business solely then a sole proprietorship is best for you or if you are running a business with some of your friends or with another person then Partnership is best. But if you want a more structured way of doing business then Private Limited, LLP, or LLP are the best options from which you can anyone according to your business.