CATEGORIES OF COMPANY
- Sole proprietorship
- Cooperative Society
- Section 8 Company
One of the pre historic form of business is sole proprietorship. In simple, it is One-Man Business that is completely controlled and owned by a solo individual. He/ She pays personal income tax on surplus earned from the business. Sole proprietorship business is easy as pie to establish and dismantle. This kind of sole proprietorship is commercial around contractors, consultants and small entities.
The bonding between persons within business who are ready to share their profit and loss that occurs in a company are commercially called partners. Partnership firms in India are governed by Indian Partnership Act, 1932. A “Legal Agreement” is the very foundation of Partnership. The factors that dissolve the partnership are bankruptcy, insolvency, giving up or death.
It is a form of organization that has emerged as a consequence of industrial revolution which leads to proliferation of industrial ventures. It is a voluntary association that has separate legal entity and surplus distribution. Cooperative societies are governed by state government under the Cooperative Societies Act, 1912. AGM is conducted every year in which the managing committee of the cooperative society is elected.
SEC 8 COMPANY
Apart from the Business sectors, fields like Sports, Science, Education, Research, Commerce, Arts, Social prosperousness, Religion, Charity, Protection of Environment, etc are established under sec 8 company. It is similar to a trust or society which is registered under Ministry of Corporate Affairs- Central Government. FCRA Registration, 12 A Registration and 80 G Registration is mandatory for sec 8 company registration.