In 1000 AD South Asia contained an estimated 75 of the world's 267.33 million people (28.05%), and who individually generated an estimated average of $450 (1990 dollars) PPP per annum, and collectively produced $33,750 million, of the world's $121,208 million (27.84%), the largest regional contribution. There is no doubt that our grievances against the British Empire had a sound basis. As the painstaking statistical work of the Cambridge historian Angus Maddison has shown, India's share of world income collapsed from 22.6% in 1700, almost equal to Europe's share of 23.3% at that time, to as low as 3.8% in 1952. Indeed, at the beginning of the 20th century, "the brightest jewel in the British Crown" was the poorest country in the world in terms of per capita income.
First estimation of India's national income by Dadabhai Naoroji in 1868. In 1970, India's economy had a 9.2% share of world income under the British Empire. By 1913, India's economy had a 5.4% share of world income under the British Empire. In 1952, India's economy had a 3.8% share of world income. In 1973, India's economy was $494.8 billion, which accounted for a 3.1% share of world income.
During 1980-1991 Indian economy was Economically closed.
In 1991Economicliberalisation was initiated by Indian prime minister P. V. Narasimha Rao and his finance minister Manmohan Singh in response to a macroeconomic crisis. In 2010, India's economy is $4.002 trillion (purchasing power parity) which accounts for a 6.3% share of world income, the fourth largest in the world in terms of real GDP. In 2012, India's economy is $4.825 trillion (purchasing power parity), the third largest in the world in terms of real GDP.
In 2014, India's economy is $7.376 trillion (purchasing power parity), the third largest in the world in terms of real income.

Contents of Memorandum of Association: The memorandum must contain the following clauses:
1. The Name Clause: It contains the name of company with which the company will be known.
2. Registered Office Clause: It contains the name of the state, in which the registered office of the company is proposed to be situated.
3. Objects Clause: It defines the purpose for which the company is formed. It is further divided into two sub-clauses: (1) the main objects: (2) other objects.
4. Liability Clause: It states that the liability of members is limited to the amount unpaid on shares owned by them.
5. Capital Clause: It specifies the maximum capital, which the company will be authorized to raise through issue of shares.
6. Association Clause: In this clause, signatories to the memorandum, state their intention to be associated with the company and give their consent to purchase qualification shares.

Promoter is a person who conceives the idea of starting a business, examines the feasibility of idea, assemble various resources, prepare necessary documents and perform other activities needed to commence the business.
Functions of a promoter:
1. Identification of business opportunity;
2. Feasibility studies: the following feasibility studies may be undertaken:
(a) technical feasibility 
(b) financial feasibility
(c) economic feasibility;
3. Name approval;
4. Fixing up signatories to the Memorandum of Association;
5. Appointment of professionals;
6. Preparation of necessary documents.

The Articles of Association are the rules for the management of the internal affairs of a company. The articles define the duties, rights and power of the officer and director of the company.
Contents of the Articles of Association (It is not an exhaustive but illustrative list)
1. The amount of share capital and different types of shares.
2. Rights of each class of shareholder.
3. Procedure for making allotment of shares.
4. Procedure for issuing share certificates.
5. Procedure for forfeiture and reissue of share.
6. Procedure for conducting, voting and proxy.
7. Procedure for appointment of director.
8. Procedure for declaration of dividend.
9. Procedure for alteration of share capital.
10. Procedure regarding winding up of the company.

Following steps are required for raising funds from public:
1. SEBI Approval: SEBI regulates the capital market of India. A public company is required to take approval from SEBI.
2. Filing of Prospectus: Prospectus means any documents which invites offers from the public to purchase share and debenture of the company.
3. Appointment of Bankers, Brokers, Underwriters: Bankers of the company receive the application money. Brokers encourage the public to apply for the shares. Underwriters are the persons who undertake to buy the shares if these are not subscribed by the public. They receive a commission for underwriter.
4. Minimum Subscription: According to the SEBI guidelines, minimum subscription is 90% of the issue amount. If minimum subscription is not received then the allotment cannot be made and the application money must be returned to the applicants within 30 days.
5. Application to Stock Exchange: It is necessary for a public company to list their shares in the stock exchange. Therefore, the promoters apply in a stock exchange to list company shares.
6. Allotment of Shares: Allotment of shares means acceptance of share applied. Allotment letters are issued to the shareholders. The name and address of the shareholders is to be submitted to the Registrar.

Registration of a partnership firm is not compulsory under law. The Partnership Act, 1932 provides that if the partners so desire they may register the firm with the Registrar of Firms of the state in which the main office of the firm is situated.
Consequences of Non-Registration: An unregistered partnership firm suffers from the following situations:
1. It cannot enforce its claims against a third party in a court of law.
2. It cannot claim adjustment for any sum exceeding Rs.100. Suppose an unregistered firm owes Rs.1200 to A and A owes Rs.1000 to the firm the firm cannot enforce adjustment of Rs.1000 in a court of law.
3. It cannot file a legal suit against any of its partners.
4. Partners of an unregistered firm cannot file any suit to enforce a right against the firm.
5. A partner of an unregistered firm cannot file a suit against other partners. Nonregistration of a firm, however, does not affect the following rights:
(i) The right of a partner to sue for the dissolution of the firm or for the accounts of a dissolved firm or to enforce any right or power to realise the property of a dissolved firm.
(ii) The power of an Official Assignee or Receiver to realize the property of an insolvent partner.
(iii) The rights of the firm, or its partners, having no place of business.
(iv) Any suit or set off in which the claim does not exceed rupees one hundred.
(v) The right of a third party to sue the unregistered firm or its partners.

Procedure for Registration: In order to get a partnership firm registered an application in the prescribed form must be filed with the Registrar of Firms. The application should contain the following information:
(i) The name of the firm,
(ii) The principal place of business of the firm,
(iii) Names of other places where the firm's business is carried on,
(iv) Names in full and permanent addresses of the partners,
(v) The date on which each partner joined the firm,
(vi) Duration of partnership, if any.
The application should be signed and verified by each partner. A small amount of registration fee is also deposited along with the application. The application is to be submitted to the Registrar for registration of the firm for its verification. If everything is in order and all legal formalities have been observed, the Registrar shall make an entry in the register of firms. He will also issue a certificate of registration. Any change in the information submitted at the time of registration, should be communicated to the Registrar. Registration does not provide a legal entity to the partnership firm.

The right of all the partners in a partnership to act as the agents for the partnership's normal business activities, with the authority to bind the partnership into business agreements which have been entered into is called mutual agency. This statement sums up the partnership relationship. The relationship should offer flexibility, opportunity and balanced against that, risk. In partnership you entrust to fellow partners your future reputation and prosperity. Each of us has within our power the ability to enter into undertakings which could bankrupt our fellow partners.

For legal consultancy and chartered accountancy firm, partnership firm will be more suitable because it has:
(i) Ease of formation and closure
(ii) Balanced decision making
(iii) More funds
(iv) Sharing of risks
(v) Maintain secrecy

Sole proprietorship will be more suitable for grocery store, medical store, and internet cafe because:
(i) It has easy formation and closure.
(ii) It needs limited resources.
(iii) He will be sole risk bearer which is not so high and profit recipient.
(iv) He will have 100% control.

The term 'business risk' refers to possibility of inadequate profits or even losses due to uncertainties e.g., changes in tastes and preferences of consumers, strike, increased competition, change in Government policy etc. These are of two types-speculative and pure.
Nature of Business Risks
1. Business risks arise due to uncertainties: Natural calamities, change in demand and prices, change in technology etc. are some of the examples of uncertainty which create risks.
2. Risk is an essential part of every business: No business can avoid risk. Risk can be minimised but cannot be eliminated.
3. Degree of risk depends mainly upon the nature and size of business: For small scale business it is less and for large scale business it is more.
4. Profit is the reward for risk taking: An entrepreneur assumes risks and in consideration he gets reward which is called profit. Greater the risk higher is the chance of profit.

The world's first dock was established around 2400 Be at Lothal.

Maintaining trust and confidentiality of information is of utmost importance in a partnership business.
It is also important to use mutual agency in utmost good faith keeping in mind the interests of all partners.

Sole Proprietorship is most desirable from employment generation point of view because it is done at a small scale and small scale labour-intensive methods are used. It will create more employment opportunities.