- Private Limited Company (Pvt Ltd): This is the most popular form of company registration, chiefly for small and medium-sized businesses. A Private Limited Company offers limited liability, meaning shareholders’ personal possessions are protected. It requires a minimum of two directors and shareholders. The shares of the company cannot be traded publicly.
- Public Limited Company (PLC): A Public Limited Company can raise capital by delivering shares to the public and may list its shares on a stock exchange. It requires a minimum of three directors and seven shareholders. PLCs are subject to more stringent regulations compared to private companies.
- Limited Liability Partnership (LLP): This hybrid structure combines the features of a partnership and a company. It provides limited obligation to its partners, protecting their personal moneys, and is fit for professional services like law and accounting firms.
- One Person Company (OPC): A relatively new structure, an OPC allows a single discrete to register a company while still enjoying the benefits of limited liability. It’s ideal for entrepreneurs who want to maintain full control of the business.
- Sole Proprietorship: The simplest form of business registration, where one person owns and operates the business. The owner has unlimited charge, meaning personal properties are at risk.
Choosing the right type of company registration depends on factors like liability, investment needs, and business goals.