"Corp", "LLC", "LLP", and "Inc" are terms used in different countries to refer to different forms of business structures. In India, the terms "Corp" and "Inc" are not commonly used. The most common forms of business structures in India are private limited companies, limited liability partnerships, sole proprietorships, and partnership firms.
Each form of incorporation has its own set of advantages and disadvantages, and the right choice depends on the specific needs and goals of a business. For example, a private limited company may be the best choice for a business seeking to raise capital through the sale of stocks, while a sole proprietorship may be suitable for a small, home-based business.
"Corp", "LLC", "LLP", and "Inc" are different business structures or forms of incorporation.
"Corp" stands for Corporation. It is a separate legal entity from its owners and can raise capital through the sale of stocks.
"LLC" stands for Limited Liability Company. It is a hybrid business structure that combines the liability protection of a corporation with the tax benefits of a partnership.
"LLP" stands for Limited Liability Partnership. It is a type of partnership where partners are not personally liable for the debts and obligations of the business.
"Inc" stands for Incorporated. It is a form of corporation that has been incorporated to form a separate legal entity from its owners.
In India, the following are the different forms of incorporation with their legal provisions:
Private Limited Company (Pvt Ltd) - A private limited company is a separate legal entity from its owners and is governed by the Companies Act, 2013. The liability of the shareholders is limited to the amount of capital they have invested in the company. The minimum number of shareholders required to form a private limited company is two, and the maximum number is 200.
Limited Liability Partnership (LLP) - LLP is a hybrid form of business that provides the benefits of a partnership and the limited liability of a company. It is governed by the Limited Liability Partnership Act, 2008. In an LLP, the partners have limited liability and are not personally responsible for the debts and obligations of the business. The minimum number of partners required to form an LLP is two.
Sole Proprietorship - A sole proprietorship is a type of business owned and run by a single individual. The owner is personally responsible for all the debts and obligations of the business. There is no separate legal entity for a sole proprietorship, and the business and the owner are considered the same.
Partnership Firm - A partnership firm is a type of business owned and run by two or more individuals. The partners are jointly responsible for the debts and obligations of the business. The partners share profits and losses, and there is no separate legal entity for the business. Each form of incorporation has its own set of advantages and disadvantages, and the right choice depends on the specific needs and goals of a business. For example, a private limited company may be the best choice for a business seeking to raise capital through the sale of stocks, while a sole proprietorship may be suitable for a small, home-based business.