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Best Constitution for a New Business

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Coolca

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33 Points Posted on 24 September 2021

Hi,

I have to register a new business but Im just wondering which is the best constitution to register with in terms of legal standing, compliance cost and government benefits. I have two options of going solo or bringing in someone.

Could you suggest which would be best our of a partnership, a private limited company or a proprietorship firm?

Thanks.

Replies (2)

Quick Summary

When registering a new business, selecting the right legal structure is crucial. This discussion explores the pros and cons of sole proprietorship, partnership, and private limited companies. Factors to consider include liability, investment needs, compliance costs, and potential government benefits like rural infrastructural subsidies for manufacturing.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 24 September 2021

In Sole Proprietorship the liability is borne by the proprietor only. In contrast to, Partnership where the liability is shared between partners.In case of large investments needed, go to private company establishments