company registration in India


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Here in this blog forum, I am going to confer about the company registration types in India that makes you fall in love with business.


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Company Registration types in India that makes to fall in love with business :

Company Registration types in India that makes to fall in love with business By- EARNLOGIC


COMPANY REGISTRATION IN INDIA INDIA- A country with large number of start-up companies mushrooming massively and stands as third largest number of start- up in the world. This parallelly creates huge number of business opportunities for start-ups. Unluckily, the same India stands second in the number of unregistered business too. Registering a company is relatively easy and a stress free feel that proposes legal protection to the businessmen. Registered company can be operated effectively and enthusiastically.


LIMITED COMPANY REGISTRATION Limited company requires a minimum of 3 Directors and has no limit on the maximum number of members. Limited company registration has more stringent and extensive compliance requirements when compared to a private limited company. It’s better to form a limited company and divide the shares equally. By setting up a Limited Company, business people could protect assets which were effectively beyond those declared as assets of the company being formed.


PRIVATE LIMITED COMPANY REGISTRATION It is one of the highly recommended way to start a business in India. Private limited company offers finite liability for their shareholders with convinced restrictions placed on the ownership. The directors are different from the shareholders in private limited company registration. It can have a minimum of 2 member and maximum of 200 member.


A private limited company is broadly classified into 3 types, Company limited by shares, Company limited by guarantee, Un-limited company.

Limited liability :

Limited liability refers to limited exposure to financial risk by investors of a company. That is, the shareholders liability in the company is limited to the capital amount invested in the company. For example, if Ram invests Rs.1 LAKH to start a private limited company, his potential loss cannot be beyond Rs.1 LAKH. He won’t be liable for any liability beyond this initial amount of 1 lakh.

Business continuity:

Business continuity The shareholders may come and go since, the company is unaffected even in case of death of any shareholders. So that the private company enjoys perpetual succession.

Fund Raising:

Fund Raising The banks, venture capital funds and private equity funds lend their resources easily to a private limited company. Venture capital firm likes to invest here because they can exchange equity shares. The banks can use the assets of the company as security for loan purpose. The registered private limited company can be easily sold to others without affecting any activities of the company.


PUBLIC LIMITED COMPANY REGISTRATION A Public Limited Company is a voluntary association of members which is registered under company law. It has an individual legal existence and the liability of its members are limited to shares they hold . One can choose what business structure suits their business needs and accordingly register their business. Public limited company registration is the legal destination of LLP that has offered shares to the general public and has limited liability.


ONE PERSON COMPANY REGISTRATION The one person company was introduced under the Companies Act, 2013- Ministry of Corporate Affairs in order to support the entrepreneurs to create a single person economic entity. One of the greatest leverage of OPC is that only 2 members are required for company registration and maintenance. An OPC is a separate legal entity which offers limited liability protection to its shareholders and also easy to incorporate.

Difference between OPCs and Sole Proprietorships :

Difference between OPCs and Sole Proprietorships A  sole proprietorship  form of business might seem very similar to one-person companies because they both involve a single person owning the business, but they’re actually exist some major differences between them . The main difference between the two is the nature of the  liabilities  they carry. Since an OPC is a separate legal entity distinguished from its promoter, it has its own assets and liabilities.


PARTNERSHIP FIRM REGISTRATION Some of the tools to stay afloat in this partnership ocean are namely small start, talent & right partner identification, making introduction, getting clear vision, taking ownership, staying flexible, listening for feed backs and having fun. Business partners are the persons who help the venture that is struggling to maintain the leads in a steady manner and thereby giving hands as a partner which finally results in unexpected growth development and opportunities.


L IMITED LIABILITY PARTNERSHIP LLPs having a capital amount less than 25 lakhs and turnover below 40 lakhs per year do not require any formal audits It can own or acquire property because it is recognized as a juristic person and Partners of Limited Liability Partnership cannot claim the property as theirs. It is an alternative corporate business form which offers the benefits of limited liability to the partners at low compliance costs. It also gives way for the partners to organize their internal structure like a traditional partnership. A limited liability partnership is liable for the full extent of its  assets . Hence, LLP Company is a hybrid between a  company  and a partnership.


SECTION 8 & SECTION 25 COMPANY REGISTRATION It can be entrenched for “boosting commerce, science, sports, research, social welfare, arts, religion, charity, education, safe- guarding of environment or any such other object”, provided it “intends to apply their profits, if any, or other kind of income in boosting its objects” and “intends to prohibit the payment of any dividend to its members.”.


CONCLUSION “Let your trade plans be impenetrable and dark as night, but when you start your business, fall like a thunderbolt and shock your competitors!” Thank you, Earnlogic Consultants Call Us At: +91 9842480987 Mail Us At:

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