Choosing a Legal Business Structure for your Business

Earlier, starting a company and doing business was a difficult thing as the there was no computerisation. Everyone knows the advantages of forming a company and doing business rather doing business in the form of proprietory form of business and partnership. The advantage, as everybody knows is the issue of "limited liability". But, company law is a very big subject to deal with and one needs expertise to advice on company law. Forming a company may not a big deal now a days as it can be done on-line, but, running the company without any legal hurdles requires the counsel from an expert of company law. Even the businessmen may understand what is comapny, how to start a comapny, how to file reports, final accounts, conducting meetings, statutory meeting, general body meeting, majority stake, dilution issues, opression and mismanagement, winding-up, liquidation etc. But, there are many inherent concepts and principles and its all  part and parcel of law. While it is good do busines by forming a limited liability company, one needs to cocentrate more on legal issues.

Though there are many options to start a company such as Propreitorship, partnership, Pvt. Ltd. or Public Ltd. companies. This mush be chosen to the need of the enterpreneur, volume of proposed business, capital available, group of persons wishing to join and contribute in terms of finance, expertise, know-how, marketingg, stratagists etc. The choice be liberal of course with the help of an expert or rather a Lawyer, discussing the details of proposed project,ins and outs of business and to come to an ideal set up for the business structure of your business. It is normally advised to select the Form of "Limited Liability" instead of propreitorship or Public Limited Company.

Though it is true that forming a Pvt. Limited Company involves lots of ground work, now even a Partnership firm can be structured with Limited Liability. The Limited Liability Partnership Act - 2008 is best form of new business structures where the partners enjoy the status of Partnership and at the same time their liability remains "limited" with less paper work. In my opinion this is the best product the legislature has given to its citizen in the recent Histroy and the best opportnities are made available as one more best form of business strucature is now available to the business community.

Requirements of association of persons depends on their needs.  Each corporate entity has its own advantages and disadvantages.  People with small capital requirements may opt for LLP as the cost of incorporation is low.  The concept is similar to partnership with the advantages of limited liability.  The registration process is simpler.