Design

Entrepreneurship

Design Entrepreneurship

Entrepreneurship Models / Types

Dr Guruprasad
Rao
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Design
Entrepreneurship

“Company”

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Design
Entrepreneurship

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Design
Entrepreneurship

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Design
Entrepreneurship

Copyright : MIT WPU -2022

Design
Entrepreneurship

Copyright : MIT WPU -2022

Design
Entrepreneurship

Copyright : MIT WPU -2022

Design
Entrepreneurship

Copyright : MIT WPU -2022

Design
Entrepreneurship

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Design
Entrepreneurship

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Design
Entrepreneurship

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Design
Entrepreneurship Sl
Criteria Types of Companies
No
Micro Companies
1 Basis of size Small companies
Medium companies
Basis of the number One person company
2 Private companies
of members
Public companies
As per the Companies Act of
Holding companies
2013 3 Basis of control Subsidiary companies
Associate companies
Limited by Shares or by
4 Basis of liability Guarantee
Unlimited
5 Basis of access to Listed companies
capital Un-listed companies

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Entrepreneurship

Types of Company
Registration:

1.Private Limited Company

As per the Companies Act of
2013
2.Public Limited Company
3.Partnerships
4.Limited Liability Partnership
5.One Person Company
6.Sole Proprietorship
7.Section 8 Company

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Entrepreneurship

As per the Companies Act, to be eligible for this type of

business registration, the following criteria must be met:

1.Minimum of two and maximum of fifteen directors 

2.At least one of the directors must be an Indian resident
3.Minimum of two and maximum of 200 shareholders or
members
4.Additionally, an authorised capital fee amounting to at least
₹1 lakh
5.Must have a registered office address within India.

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Types of Private Companies

1.Limited by shares: In such private limited

companies, the liability of the members is limited to
the normal value of shares owned by them 

2.Limited by guarantee: In this case, the liability of

members is limited by the amount the members will
contribute or guarantee to pay if the company goes
bankrupt.

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Design
Entrepreneurship

As per the Companies Act of 2013, the following criteria must

be met to register as a public limited company:

1.Minimum of three directors 

2.At least one of the directors must be an Indian resident
3.Minimum of seven shareholders with no cap on the
maximum limit
4.An authorised capital fee amounting to at least ₹5 lakhs
5.Must have a registered office address within India.

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Design
Entrepreneurship

Partnership Firm
In partnerships, the handling of operations is by
partners who have agreed on the role and share in
profits. The functions, duties, powers, and number of
shares held are all clearly defined in a verbal contract
known as the partnership deed. These businesses fall
under the purview of the Indian Partnership Act of
1932. 

Partnership firms can function with or without a license

as long as they have a valid and registered
partnership deed. However, most partnerships do
register as it gives them additional rights and benefits.

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Entrepreneurship

The eligibility criteria to form a partnership are: 

1.Minimum of two and maximum of fewer than ten

partners
2.Must have a registered office address within India
3.Must have a registered partnership deed signed by all
partners.

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Entrepreneurship

Limited Liability Partnership Popularly called an

LLP, is a new type of company in India.

It enjoys a separate legal status, helping

distinguish between personal and business assets,
and granting the entrepreneurs limited liability
protection.

In LLPs, the liability of each partner depends on the

number of share capital. 

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To set up an LLP, the following criteria must be met: 

1.Minimum authorized capital amounting to ₹1 lakh

2.At least one of the designated partners must be an Indian
resident
3.Minimum of two partners and no cap on the maximum
number
4.At least one individual partner, if the rest are corporate
bodies
5.No requirement for shared capital since each partner must
have an agreed contribution.

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Entrepreneurship
One Person Company (OPC)

The newest entry into the different types of company

registration allowed in India. It is great for small
businesses.

It is the best option for entrepreneurs who wish to run

a business by themselves. The OPC has a separate
legal status; entrepreneurs get the benefit of liability
protection without having to partner with anyone
else. 

Since it involves only one individual, an OPC is easy to

incorporate and regulate. It essentially serves as a
combination of the sole proprietorship and private
limited company model of business entities.
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Sole Proprietorship is where a single individual handles

the running of the business. The company and the
owner are considered as a single entity, making them
solely responsible for profits and losses. Since the
registration bears the name of the owners, tax filings
and accounting reports will also bear the name of the
owner, leading to unlimited business liability.

That said, it is the simplest form of business to set up

and run. Home business owners prefer this as it does
not require much investment or compliance.

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Entrepreneurship

Section 8 Company

Commonly called a non-profit organization, Section

8 companies work for charitable purposes.

The purpose is along the lines of promoting arts,

science, literature, education, caring for the needy,
and protecting the environment. Moreover, all the
profits generated by them are used to achieve
these objectives, and the members do not take
dividends for themselves. 

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To register a Section 8 company, you must meet the following

criteria:

1.Minimum of two shareholders

2.Minimum of two directors and they can be shareholders as
well
3.At least one of the directors must be an Indian resident
4.No minimum capital requirement
5.Must have a registered office address in India.

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Design
Entrepreneurship

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Design
Entrepreneurship

There are typically four main types of startups:

1. Small business,
2. Lifestyle businesses,
3. Freelancers, and
4. Solopreneurs

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Design Top Startups in India
Entrepreneurship CRED
Vernacular.ai
PharmEasy
Digit Insurance
Meesho
Groww
Nykaa
Udaan
Dream11
Swiggy
Instamojo
PostMan
Delhivery
Slice
InMobi
Practo
Boat
Skyroot Aerospace
LivSpace
Ather
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Design
Entrepreneurship

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Design
Entrepreneurship

Choose one of India’s

Startups, study their story
and write a brief note on
the same.

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