Attributable to its global ranking for on 'Ease to
Business' scale, India is increasingly being counted as a
favoured business destination in the world. In order to facilitate
the carrying out of business activities of varied nature, the
Indian legal system allows a number of business structures such as
proprietorship, partnership, companies and limited liability
partnership. Incorporation of a company is a common mode for
business transactions in the country.
Companies in India
Companies are the artificial legal entities having existence
independent from its shareholders. Incorporated for the purpose of
carrying out business activities as stated in its Memorandum of
Association, the companies are often confronted by the requirement
of capital with view to expand its operations and earn greater
profits. The raising of capital for the said purpose is required to
be done in accordance with the Companies Act, 2013 (hereinafter
referred to as the "Companies Act").
