The company is a legal entity with the association of people. It can be mixture both for carrying on a commercial or industrial enterprise. Members of the company share a common purpose and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals.
Business with any amount of turnover can be operated as Proprietorship, Partnership, Limited Liability, Private Limited Company. In certain cases of partnership, the company does not require registration according to the Companies act, 2013. Registration is mandatory in case of any association or partnership having more than 50 people.
Limited Liability Partnership
The rule needs mandatory company registration. It does not need to relate for those businesses manage as a Limited Liability Partnership (LLP). One of the important benefits of LLPs is allowed to have unlimited partners. It is not applicable for LLP. An LLP can have any amount of sales capital or turnover.
Hindu Undivided Family
(HUF) is one of the business entities in India which includes of persons lineally descendant from a common ancestor containing their unmarried daughters and wives. The persons in a Hindu Undivided Family (HUF) are joint in worship, food and estate. HUF can also be formed by Buddhists, Jains, and Sikhs. Hindu undivided family has its own PAN and files tax returns independent of its members.
The needs of convert to company doesn't arise for association of partnership. It is created by the professionals who are managed by special acts. Professional governed by special act contains lawyers, company secretaries, cost accountants, chartered accounts and others.