Types of ownership

ENTREPRENEURSHIP DEVELOPMENT FOR RURAL FAMILIES 4(1+3)
Lesson 6 : Legal Requirements

Types of ownership

To establish an enterprise unit many legal and other formalities are to be fulfilled, which are as follows:

  1. Sole Proprietorship: There is no legal formality to set up a sole proprietorship business.

  2. Partnership: An agreement between the persons who want to form a partnership firm is necessary. As far as possible it should be in writing. A partnership firm should be registered with the Registrar of firms.

  3. Joint Hindu Family business: No legal formality to run as per Hindu Law. If the business is owned by the members of Hindu joint family.

  4. Joint Stock Company: It must be registered under the Indian Companies Act. It may be a Private Limited Company or a Public Limited Company.

  5. Cooperative Society: If the business is organized as a cooperative society, it is required to be registered with the Registrar of Cooperative Societies of the State in which societies registered office is to be situated.
Index
 Home
 Next
Last modified: Friday, 6 January 2012, 5:39 AM