ORGANIZATION AS A STRUCTURE
In India, there are many forms of business organizations, limited companies, limited liability partnerships (LLPs), partnership firms, and sole proprietorships. When choosing a business organization, one must understand the organization as a structure, different types of business structures, their merits and demerits, public acceptance, and their image. For whom is the type of business and when is it appropriate?
ORGANISATION AS A STRUCTURE AN INTRODUCTION
A social unit of individuals designed to manage for achieving collective goals is called an organization. As such, organizations are open systems that are heavily influenced by the environment they operate.
Each organization has its own specific management structure that defines and governs the relationship between different employees, the tasks they perform, and roles, responsibilities, and rights. To complete various tasks.
Such an organization that is well structured achieves effective coordination, and the structure distributes the formal communications that are linked together with individual function descriptions.
The structure of an organization’s design depends a lot on its objectives and the strategy adopted in achieving those objectives.
An organizational chart is a visual representation of this vertical structure. Therefore it is very important to take the utmost care of an organization while creating an organizational structure.
The structure should clearly determine the reporting relationships and flow of authority as it will support good communication
In India, there are many forms of business organizations, limited companies, limited liability partnerships (LLPs), partnership firms, and sole proprietorships.
When choosing a business organization, one must understand the different types of business structures, their merits and demerits, public acceptance, and their image. For whom is the type of business and when is it appropriate?
Private Limited Company-ORGANIZATION AS A STRUCTURE
Private Limited’ from the business is suitable for team entrepreneurs (business partners) with formal business relationships who want to start a very formal and organized model of business.
In addition, a private Limited’ is the most suitable option, where entrepreneurs are expecting external investment for the venture in the near future.
Limited Liability Partnership (LLP)
A close team with ‘LLP’ formal business relationships from the business is suitable for entrepreneurs who do not expect ventures from outside investors in the near future.
The LLP can later be converted into a private limited company when the business is ready to invest.
LLP is also suitable for concerned entrepreneurial teams (such as husband and wife) who wish to start a formal business with the benefit of limited liability.
One Person Company (OPC)-ORGANIZATION AS A STRUCTURE
The ‘OPC’ from the business is suitable for a solo entrepreneur who wants to start a business without a business partner and can take advantage of limited liabilities.
Please note that it is not possible to do the business of Company One Person Company other than shareholders/partners for future business.
Partnerships-ORGANIZATION AS A STRUCTURE
‘Partnership’ from the business is suitable for team entrepreneurs with formal business relationships or personal replicas.
A partnership is a business defined by a partnership agreement. The partnership is also a formal form of business without the benefit of limited liability.
Sole proprietorship-ORGANIZATION AS A STRUCTURE
Business to ‘sole proprietorship’ is suitable for a solo entrepreneur who wants to start his own business in an informal manner. There is no specific registration for proprietorship.
Also, the proprietor will not get the benefit of limited liability and cannot add partners to the business at any time. Also, a proprietorship cannot be converted into an OPC / LLP / company in the future.
The success of a business always depends on how one can organize it and pursue it to accomplish its goals. A business can be organized in various forms such as sole proprietorship, partnership, limited company, or limited liability partnership.
Originally these organizations have been classified into inclusive and non-irrigated structures. The company and LLP are corporate business organizations and partnership firms and Sole proprietorships are unincorporated structures.
Related business structures are created under related laws such as the Companies Act and LLP Act and will be treated as separate legal entities.