You Need to Know About Types of Business

India is a thriving hub for businesses, with a rapidly growing economy and a diverse range of industries. Some of the major industries in India include information technology, pharmaceuticals, textiles, agriculture, and manufacturing. The government of India has implemented several initiatives and policies aimed at promoting entrepreneurship and supporting the growth of businesses, particularly small and medium-sized enterprises.

One notable initiative is the Startup India program, which offers a range of benefits and incentives to startups, such as tax exemptions, access to funding, and simplification of regulatory procedures. India also has a large and skilled workforce, which is a significant advantage for businesses operating in the country.

However, there are also challenges that businesses in India face, such as complex and time-consuming regulatory procedures, high levels of corruption, and inadequate infrastructure in some regions. Despite these challenges, many businesses have found success in India, and the country continues to offer numerous opportunities for growth and expansion.

Types of Businesses/Companies in India 

There are various types of companies in India, which can be broadly classified into the following categories:

Private Limited Company

This is a type of company that is owned privately, and the liability of its shareholders is limited to the amount of share capital they have invested. It requires a minimum of two shareholders and can have a maximum of 200 shareholders.

Public Limited Company

This is a company that is publicly traded on a stock exchange and can raise funds from the public through the issuance of shares. The liability of shareholders is limited to the amount of share capital they have invested.

One-Person Company (OPC)

This is a type of private limited company that can be started with just one person as a member/shareholder. The liability of the member is limited to the amount of share capital they have invested.

Limited Liability Partnership (LLP)

This is a type of partnership in which the partners have limited liability, and the company is governed by the LLP Act, 2008. It requires a minimum of two partners.

Sole Proprietorship

This is a type of business in which an individual runs the business and has unlimited liability. It is the simplest form of business entity and does not require registration.


This is a type of business in which two or more people run the business and share the profits and losses. It requires a partnership deed, which outlines the terms and conditions of the partnership.

Section 8 Company

This is a type of non-profit company that is established for promoting charitable or social causes. It is governed by the Companies Act, 2013.

Producer Company

This is a type of company that is established for promoting the interests of its members who are engaged in the production of goods or services. It is governed by the Companies Act, 2013.

Foreign Company

This is a company that is registered and has its main business operations outside India, but it operates in India. It is governed by the Foreign Exchange Management Act (FEMA), 1999.

Small Scale Industry (SSI)

This is a type of company that is engaged in the manufacture, production, processing, or preservation of goods and has a turnover of less than Rs. 50 crore. It is governed by the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006.

Scope of Doing Business in India

India is one of the fastest-growing major economies in the world and has emerged as a significant player in the global business landscape. With a rapidly expanding middle class, a young and educated workforce, a vibrant entrepreneurial culture, and a large consumer market, India offers significant opportunities for businesses of all sizes and sectors. Some of the factors that make India an attractive destination for doing business include:

Large Consumer Market

India has a population of over 1.3 billion people, making it the second-most populous country in the world. This provides a vast and growing market for businesses to tap into.

Skilled and Educated Workforce

India has a large pool of skilled and educated workers, with over 7 million graduates entering the workforce each year.

Growing Middle Class

The middle class in India is expanding rapidly, with more and more people moving into the consumer class. This presents significant opportunities for businesses in sectors such as retail, consumer goods, and services.

Government Support

The Indian government has implemented several measures to promote ease of doing business in the country, such as simplifying the tax regime, streamlining regulations, and implementing online business registration processes.

Infrastructure Development

India is investing heavily in developing its infrastructure, such as airports, highways, railways, and ports, which will enable businesses to transport goods and services more efficiently.

Technology and Innovation

India has a thriving technology sector, with a large number of startups and established companies in areas such as software development, e-commerce, and fintech.

Competitive Costs

India offers competitive costs for setting up and operating a business, including low labor costs, favorable exchange rates, and affordable real estate.

Overall, the scope of doing business in India is significant, and the country presents numerous opportunities for businesses to grow and succeed. However, navigating the regulatory environment and cultural differences can be challenging, and it is important to undertake thorough research and seek professional guidance before entering the Indian market.


The business has a lot of scope in India, and the surge in employees leaving their tiresome and unrewarding jobs to start their businesses proves it. If you wish to start your own business, there are many types of businesses available in India. Starting a business on your own can be hectic, which is why it is important to have a team of legal experts by your side. JustStart legal experts can help your business get registered easily through our hassle-free process.

By Anurag Rathod

Anurag Rathod is an Editor of, who is passionate for app-based startup solutions and on-demand business ideas. He believes in spreading tech trends. He is an avid reader and loves thinking out of the box to promote new technologies.