Niji's Blog

               Company or Joint Stock Company is a form of business which can be defined as a voluntary association of persons carrying on business with profit motive and having share holders as the joint owners of the company. It is ideal business model for starting a large scale business. Capital of partners is altogether called share capital of the company. A joint stock company is formed in India according to provisions of Companies Act, 1956. A company have a separate legal entity distinct from it’s share holders and is considered by law as an artificial judicial person. Perpetual succession is another peculiar feature of a joint stock company. A company also have a common seal of it’s own. Most important feature of a joint stock company business is limited liability. It means that liability of a share holder of a company is limited to the number of shares held by him in the company. A company have a board of directors lead by a managing di...

            For starting a new business, there are different business formations. Each and every business form has it’s own advantages and limitations. The common forms of business which are accepted worldwide are the following 1)     Proprietorship business Proprietorship business is the most common and the simplest form of business. It can be formed very easily. It can be started by a single person who is called as a sole proprietor or sole trader. It has the least formalities for starting a business and it is the most comfortable form of business. Profits and losses of the business is beared alone by the sole proprietor. This form of business is ideal for small businesses where there is no need of big financial investment. Proprietorship business has no separate legal existence distinct from the owner. Liability of a proprietorship business is unlimited. Taxation matters are simple for proprietors compared to any other form ...