REGISTRATION

FIRM REGISTRATION

As we search for this word, first we need to know the difference between meanings of different entities.

Firms as we all know is an association of persons joined together for doing a Business.

The First word that originated was Sole Proprietorship Firm meaning business conducted by one person. It could be in the form of a shop doing trading of any kind of goods. here the decision maker is one person i.e. the sole proprietor and rest are his staff or employees working under him

Second term that gives more than one person to contribute to funds and share liability is PARTNERSHIP FIRM. here more than 2 i.e. at least 2 persons join together for the purpose of doing business. They share profits and liabilities and contribute funds. But maximum partners can be only 20.

Next comes Private Limited Company where the limit of maximum members is 200 thus helps bringing more money in the Business enterprise and giving many benefits such as perpetual succession, limited liability, separate legal entity which are not available in partnership firms.

To grow business like empire the necessity of Public Limited Company comes where the Directors on the Board take decisions and Limit of members is unlimited. So the pooling of funds is not a constraint in public limited companies.