Business registration or not-for-profit registration from the relevant regulators would be required for starting a business or not-for-profit organization in India. Some of the most common business registration include Proprietorship Registration, Partnership Firm registration, Limited Liability Partnership Registration, Private Limited Company Registration, One Person Company Registration and Limited Company Registration. In addition, business registration could also include certain special registrations like Nidhi Company Registration, NBFC Registration and Producer Company Registration.

Company formation is the process of registering a business as a limited company at Companies House. As a result, the business becomes a distinct legal entity. The process is also referred to as ‘company incorporation’ and ‘company registration’.

When you incorporate a limited company, it becomes an individual ‘person’ in the eyes of the law. Incorporated businesses are completely separate from their owners in terms of finances, liabilities, contractual agreements, and ownership of property and assets. Such a view is not afforded to unincorporated businesses like sole traders as distinct legal entities.

The law does not view unincorporated businesses like sole traders as distinct legal entities. Therefore, there is no separation between a sole trader business and its owner in terms of finances, assets and liabilities.