Business structure is nothing but how the company will function with the formulating way of co-ordination of business partners, Share issue and determining the way of record filing and other compliances are following in the different business structures.
The basic structure of business is following with the structures of Sole proprietorship, Partnership and corporation. As per the tax consequence One Person Company, Private limited, public limited, Limited liability Partnership and Partnership firm all are framed.
Company is a powerful form association functioning for the undertaking of business. More than two members to until 200 members can participate in the business organization. Single Owner Company is also avail for the single trader to commence his business without partnership option.
Generally companies are categorises with the basic three types. Company limited by shares, Company limited by guarantee and unlimited company. Other than trade and profit exposure, Social and welfare activities also undertook under a name of a formal company.
Statutory corporations or public corporations are actually the public bodies established and operated by Statute. RBI (reserve bank of India) is the best example for statutory company. The board of directors are directly appointing through the government.