Traditionally, there are many legal structures through which business can be conducted in India viz., Sole Proprietorship, Partnership Firms or through incorporated entities like Companies, Limited Liability Partnerships. Additionally, Not-for-Profit activities can also be carried out by setting up of a Trust, of incorporating a Company for the purpose.
Companies Act, 2013 introduced a new structure ‘One Person Company’ i.e. a Company which has only one person as member instead of the traditional requirement of at least two members. This is intended towards achieving the objective of ‘Ease of doing Business’ as the compliance requirements for One Person Companies under the Companies Act, 2013 are also minimal.
India is a country on the move and with numerous initiatives taken by the Government including the ‘Make in India’ initiative, the country is well poised to become a global hub for all kinds of businesses. Multi-nationals are seeking to land their footprints in India to set-up their businesses.
With strong winds of ‘Start-ups’ flowing across the world, India is no exception. Many young minds are coming up with innovative ideas for business which needs support from every sphere to flourish.