Different Types of Companies in India 2025

To start a new business you need to work on many aspects related to the business. Out of which one is company registration or we can say business registration. In order to register your business in India you need to choose one company out of various types of companies available in India. Choosing the right type of company among the different types of companies available in India is not a child's play. It requires a lot of effort in order to choose the right form of entity as per your business requirements. It is important to choose the right form of online company registration for your business because it impacts your business in many ways like getting goodwill, investors, clients etc. Hence make sure as a business owner you must have knowledge about different types of companies in India. 

Different Types of Business Entities in India 2025 

As per the Indian laws there are different types of companies in India 2025. Some of the key entities are given below: 

• One Person Company defined under Section 2(62) of Companies Act 2013
• Private Limited Company defined under Section 2(68) of Companies Act 2013
• Public Limited Company defined under Section 2(71) of Companies Act 2013
• Limited Liability Partnership Firms under Section 2(1)(n) of LLP Act of 2008 
• Section 8 Companies given under Section 8 of Companies Act 2013 
• Partnership Firms under Section 4 of Partnership Act 1932 
• Joint Venture Companies 
• Sole Proprietorship Firm 

Types of Business Structures in India 

There are different types of business structures in India, out of which some are explained below: 

One Person Company

Earlier than the Companies Act of 2013, there was no entity like One Person Company. However, as the marketplace has necessities of such an entity, it's been brought within the business via the change within the groups Act.

 Features of One Person Company

• Single owner.
• Limited liability.
• Separate legal entity.
• Minimal compliance requirements.
• Mandatory nominee.
• Corporate tax benefits.
• Perpetual succession.
• No minimum capital needed.
• Conversion required after turnover threshold.
• Only for resident Indians.

Private Limited Companies 

In the last few years lots of startups and small companies have grown in the Indian marketplace and amongst them private limited company registration is very famous. Each year thousands of personal restricted businesses get registered under the Companies Act.

Features of Private Limited Companies 

• Separate legal entity.
• Limited liability for shareholders.
• Minimum two and maximum 200 members.
• Restriction on share transfer.
• Perpetual succession.
• Ability to raise funds from investors.
• Higher compliance requirements.
• Eligible for FDI under automatic route.
• Mandatory to appoint directors (minimum two).
• Cannot trade shares publicly.

Public Limited Companies

These companies are usually registered for the big business as they are not easy to form. It takes a lot of effort as well as cost in order to register such companies. Hence in comparison to Private Limited Companies, such public entities are registered more. 

Features of Public Limited Company in India 

• Separate legal entity.
• Limited liability for shareholders.
• Minimum 7 members, no maximum limit.
• Shares are freely transferable.
• Eligible to list shares on stock exchanges.
• Higher compliance and regulatory requirements.
• Mandatory to appoint at least 3 directors.
• Can raise capital from the public.
• Perpetual succession.
• Greater transparency and disclosure norms.

Limited Liability Partnership Firm 

Before 2008 partnerships were just formed in a traditional manner only but after that confined legal responsibility Partnership firm i.e LLP came into force and then partnership got started registered as a corporate body in India. Now you can actually check in a partnership firm as a company frame beneath the LLP Act of 2008.

Features of Limited Liability Partnership Firm 

• Separate legal entity.
• Limited liability for partners.
• Minimum two partners, no maximum limit.
• Flexible management structure.
• No requirement for minimum capital.
• Profits taxed at a firm level, not individual partners.
• Perpetual succession.
• Simplified compliance compared to companies.
• Partners' roles and responsibilities defined by agreement.
• No mandatory audit unless turnover or contribution crosses specified limits.

Section 8 Companies 

Section eight companies are formed with charitable purposes simplest. Their objective can't be profit making. They're one of the types of Non authorities enterprise typically referred to as NGOs in India. 

Features of Section 8 Companies 

• Non-profit purpose.
• No "Ltd." in the name.
• Profits reinvested.
• Limited liability.
• Government approval needed.
• Separate legal entity.
• Tax benefits.
• Perpetual succession.
• High compliance.
• Can be private or public.

Partnership Firms 

They are the most common form of business entities which are very popular in the India market. They formed under the Partnership Act of 1932. They are different from Limited Liability Partnership Firms as those are corporate entities and forms under LLP Act of 2008. 

Features of Partnership Firms 

• Minimum two partners.
• No separate entity.
• Unlimited liability.
• Profit sharing.
• Partnership deed governs.
• Easy formation.
• No perpetual succession.
• Partners are agents.
• No public funding.
• Dissolves on exit.

Sole Proprietorship Firms 

These are the forms which are good for very small and limited expansion businesses. These are not governed by any law, neither their registration is compulsory. They can be registered by taking GST registration on their name as well. Hence they are easy to register. 

Features of Sole Proprietorship Firm 

• Single owner.
• No separate legal entity.
• Unlimited liability.
• Full control by the owner.
• Easy to start and dissolve.
• Profits belong to the owner.
• Minimal compliance.
• No perpetual succession.
• Cannot raise public funds.
• Taxed as individual income.

Company Types on Different Criteria in India 2025 

Except the companies explained above there are few more companies which you must know as a business owner. They are based on the size, holding. Liabilities, listing etc. In order to know about them more refer the table given below: 

Conclusion 

Although there are many types of business entities under the law it's really important to determine the one which best suits your business. Knowing about all of them is fine but to determine one which is best for your business is really difficult. Hence before doing online company registration for your business do through research or take professional help in order to determine your business needs and only then register your company. This is suggested because just like registering a company it takes a lot to wind up a company, hence make sure to register the right entity in the very first time only.