Embassy, Consulate-General, Consulates and NBSO's, India

Business Entities

Types of business entity

  • Sole proprietorship
    Sole proprietorship is comparable to the Dutch ‘eenmaanszaak’. Sole proprietorship is the easiest entity to set up, because it doesn’t require a separate PAN (Permanent Account Number) nodig: the PAN of the founder counts as the PAN of the entity.
  • Partnership Firm
    A Partnership Firm is part of the Partnership Act, dating back to 1932.  This regulation stipulates that a minimum of 2 or a maximum of 20 people may form a partnership. A partnership is established on the basis of the capital that every partner contributes. This agreement also determines the income distribution.
  • Limited Liability Partnership (LLP)
    A LLP is similar to the Dutch B.V. In a LLP the entity’s property is flexible. The financial liability is limited to the investment. A LLP has its own PAN and legal status. Personal situations don’t affect the existence of a LLP
  • Private Limited Company
    In a Private Limited Company, the owner may own shares. However, he/she may not publicly trade these shares. Liability is limited to the number of shares and the corresponding sum.
  • Public Limited Company
    The structure of a Public Limited Company resembles that of a Private Limited Company. The difference is in the number of shareholders. A Public Limited Company has no maximum amount of shareholders; a Private Limited Company does. The shares of a Public Limited Company are freely tradable on a stock exchange.