Proprietorship is the simplest form of business that is owned, managed and controlled by one person. This form of business is most suitable for very small size of business in unorganised sector.

Proprietorship business take very less time to start and further compliances in case of proprietorship business is very less.

Public Limited Company is an organized and structured form of business constitution suitable for a very large scale of Business.

Public Company can arrange its funding requirement from public at large. Public Limited Company enjoys highest level of credibility among all stakeholders, as it is subject to greater level of control of various regulatory bodies.

Partnership form of business is suitable for small sized business in which two or more person decides to start a venture and shares profits and losses of the business.

Profit Sharing is very important aspect of Partnership business, in which every partner must share profit of the business and every person who shares the profit of the business must be a partner.

OPC (One Person Company) is a very new form of business. It is a kind of proprietorship business with limited liability of owner (shareholder).

OPC is most suited for small sized business as OPC has to be converted in to Company after its turnover or paid up capital is increased beyond specified threshold limit.

LLP is a hybrid of Partnership Firm and a Private Limited Company; it has all good features of both Partnership and Company.

LLP is a Partnership firm with separate legal entity and perpetual secession. Unlike Partnership Firm the liability of Partners of LLP is limited.

Private Limited Company is an organized and structured form of business constitution. This form of business is more transparent and reliable form of business.

Private Company is suitable for businesses where capital is being contributed by close group of members.

In case the foreign corporation has plans to operate in India on a full scale just like an Indian company then forming a subsidiary company in India is the answer.

The subsidiary of Foreign Company may be incorporated in the form of private or a public company. As an Indian Subsidiary Company, it shall be subject to the same set of rules which applies to any other Indian company.

In India, as per the Trust Act, 1882 any person can register themselves as trust who commence a non –profit organisation for voluntary charitable work.

A trust can be created by execution of a trust deed; there are two types of trust. A public trust (charitable trust) is created for the benefit of general public whereas a private trust is created for the benefit of a particular group of individuals known as the beneficiary.

Society is an association of 7 or more persons who act jointly for the promotion of a common purpose.

In India, Societies are registered with the state authorities and need to prepare memorandum and rules thereunder with agreement of the members. In India, the registration of these societies are done under The Societies Registration Act, 1860.

Section 8 Company is a company not-for-profit purposes with the object to promote commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object.

The profits, if any, are applied for promoting its objects and not distributed among the members of the Company. Section 8 company has more credibility than Trust or Society.

A foreign resident/ corporation can also start a business in India in the form of Limited Liability Partnership (LLP).

An LLP incorporated in India can accept the foreign direct investment subject to the fulfilment of eligibility criteria given by Reserve Bank of India (RBI).

A Foreign Company/ Corporation can establish a branch office in India by satisfying the eligibility criteria and obtaining prior approval of the Reserve Bank of India (RBI) and subsequently registering it with the Registrar of Companies.

In case, the objective of foreign company is to book orders, but the delivery of goods or services shall be the responsibility of the head office, a branch office of the foreign company is a good choice.