Limited Liability partnership has been introduced in India with the goal of providing the structure of a business entity that provides limited liability to its owners and at the same time requires minimal maintenance. It is governed by Limited Liability Partnership Act 2008. A client should choose LLP registration because Limited Liability Partnership gives the double advantage of both a Company and a Partnership in a single form of organization where any one partner is not responsible or liable for another partner’s misconduct or negligence. The partners have limited liability in this sense.
If you plan to have low set-up costs, be controlled by fewer compliance requirements, and need no external funding while protecting your personal assets from LLP’s Debts, then LLP is a very suitable form of structure for your business. LLP is the most popular structure among professional services firms (web designers or architects, for example) that require no equity funding. LLP registration is one of the forms of business which can be managed easily. Unlike Private Limited(s), LLPs don’t have to have boards, hold annual meetings or record minutes.
PAN Card copy of partners
Copy of Aadhaar Card/ Voter identity card
Passport size photograph of partners
Property papers copy (If owned property)
Rent agreement copy (If rented property)
Landlord NOC (Format will be provided by us)
Electricity/ water bill of business place
Minimum 2 Partners
No Capital Requirement
At least one Indian Resident as Designated Partner
DPIN for all Partners
Low set-up cost – LLP has no authorized capital requirement (minimum of Rs. 1 lakh for a private limited company), significantly lowering the cost of setting up as compared to a Private Ltd Company
Limited Liability– Personal assets of partners are safe; a liability of LLP is limited to the assets of LLP
Minimal Compliances– Unlike in private Limited Company, no audit is required in LLP. An LLP’s accounts are required to be audited only if it has earnings greater than Rs. 40 lakhs or capital contribution of over Rs. 25 lakhs
Tax Advantages – LLP offers some important advantages over a private limited company. For example, Dividend Distribution Tax and tax surcharge are not applicable; hence fewer taxes have to be paid. Loans to partners are also not taxable
Separate Legal Entity – An LLP is a legal entity and a juristic person established under the Limited Liability Partnership Act 2008
NGO - Non Profit Company (Section 25)
A Non-Profit Company can be formed for any non-profit activity. It is identical to an ordinary company in all respects except that it is not established for profit and commercial gain. It is also called a Section 25 Company and is a voluntary association of people, registered under the Indian Companies Act, 1956. The accountability aspect of a non-profit company because of statutory disclosure requirements is a relevant advantage of a company's operational transparency and ability to invoke and maintain public faith
Objectives of a non-profit company can be including promotion of commerce, art, science, religion, charity or any other useful object. Profits are applied for promoting only the objects of the company and no dividend is paid to its members. (Section 25 (1) (a) and (b) of the Companies Act, 1956). A non-profit company may be public or Private. If the non-profit company is a private company, minimum of only two members are required to form it. However, if the non-profit from is for a public purpose, then a minimum of seven are needed. A 'Section 25 company' and is eligible for certain exemption from provisions of law and concessional rate of fees etc.
A PARTNERSHIP IS A BUSINESS STRUCTURE IN WHICH TWO OR MORE INDIVIDUALS MANAGE AND OPERATE A BUSINESS IN ACCORDANCE WITH THE TERMS AND GOALS SET OUT IN THE PARTNERSHIP DEED. PARTNERSHIP REGISTRATION IS RELATIVELY EASY AND IS PREVALENT AMONGST LITTLE AND MEDIUM SIZED BUSINESSES IN THE UNORGANIZED SECTORS. WITH THE INTRODUCTION OF LIMITED LIABILITY PARTNERSHIPS IN INDIA, PARTNERSHIP FIRMS ARE QUICK LOSING THEIR PREVALENCE DUE TO THE ADDED ADVANTAGES OFFERED BY A LIMITED LIABILITY PARTNERSHIP.
A partnership is governed by the Indian partnership act, 1932 and is defined as 'the relation between persons who have agreed to share profits of the business carried on by all or any of them acting for all.
This definition gives three minimum requirements to constitute a partnership, viz.
(1) There must be an agreement entered into by the persons who desire to form a partnership,
(2) The object of the agreement must be to share the profits of business intended to be carried on by the partnership, and
(3) The business must be carried on by all the partners or by any of them acting for all of them.
PAN Card copy of partners
Copy of Aadhaar Card/ Voter identity card
Proof of Registered office (Telephone/ Mobile Bill/ Electricity/ Gas Bill)
Minimum 2 Partners
Capital Requirement
Partnership registration is very easy.
Relatively Inexpensive-A Partnership registration is inexpensive as compared to Limited Liability Partnership and It has minimum compliance requirement.
Audit not required-A Partnership is not required to file audited statements with ministry of corporate Affairs each year. However tax audit may be required if Turnover exceeds certain Prescribed limits.
For a proprietorship firm, there is no separate registration required. Moreover, there is no procedure for obtaining name approval (as in the case of companies). You would have to just open a bank account with the firm name. But in case your business is liable for VAT and / or Service Tax registration, then you must obtain VAT and / or Service Tax registration. Further, for a sole proprietorship firm, no separate income tax PAN is required. The PAN of the proprietor will be the PAN of the firm and proprietor will have to file income tax return in his personal name.
PAN Card copy of proprietor
Copy of Aadhaar Card/ Voter identity card
Electricity/ water bill/ Telephone bill/ Mobile bill of business premises
Easy to Start – Sole Proprietorship firm needs no registrations, therefore it is very easy to start with no formalities.
Comparatively Inexpensive – A sole Proprietorship is cheaper as compared to One Person Company and it has minimum compliance requirement.
Audit not required – A sole proprietorship is not required to file audited statements with the Ministry of Corporate Affairs each year. However, tax audit may be required if earnings exceed certain prescribed limits.
Taxation – A proprietorship with income of less than Rs. 2 Lakhs per annum is not required to pay income tax.
Public Limited Companies are those types of companies whose shares are traded on stock market or issues fixed deposits. For Public Limited Company Registration, the company must have minimum 3 Directors, 7 Shareholders and Maximum 50 Directors and need Rs 5 Lakhs of Paid up Capital. A Public limited company have all the advantages of Private Limited Companies and the ability to have any number of members, ease in transfer of shareholding and more transparency.
A Public Limited Company is a Company limited by shares in which there is no restriction on the maximum number of shareholders, transfer of shares and acceptance of public deposits. The liability of each shareholder is limited to the extent of the unpaid amount of the shares face value and the premium thereon in respect of the shares held by him. However, the liability of a Director / Manager of such a Company can at times be unlimited. The minimum number of shareholders is 7.
Minimum 7 Shareholders
Minimum 3 Directors
Minimum 5 Lac Share Capital
DIN for all Directors
Limited Liability-Members Personal assets are safe, Liability of company is limited to the assets of same.
Uninterrupted Existence-A company has perpetual existence and remains unaffected by death of any of its members or change in membership.
Borrowing Capacity-In compare to other forms, more preference is given to public limited company in giving loan.
Separate Legal Entity-A public limited company is a legal entity and a juristic person established under the Act.
PRIVATE LIMITED COMPANIES ARE THOSE TYPES OF COMPANIES WHERE A MINIMUM NUMBER OF TWO MEMBERS ARE REQUIRED AND CAN HAVE A MAXIMUM OF FIFTY MEMBERS. PRIVATE LIMITED COMPANY IS THE MOST POPULAR LEGAL STRUCTURE FOR BUSINESSES. START-UPS AND GROWING COMPANIES PREFER IT ON GROUNDS THAT IT ALLOWS OUTSIDE FUNDING TO BE RAISED EASILY, LIMITING THE LIABILITIES OF ITS SHAREHOLDERS AND ENABLING THEM TO OFFER EMPLOYEE STOCK OPTIONS TO PULL IN TOP TALENT.
A PRIVATE LIMITED COMPANY REGISTRATION HAS EVERY BENEFIT OF A PARTNERSHIP LIKE FLEXIBILITY, GREATER CAPITAL CONTRIBUTION AND ENHANCED ABILITIES, ETC TO OFFER COMBINED WITH LIMITED LIABILITY, GREATER STABILITY AND LEGAL ENTITY. IF YOUR IDEA NEEDS FUNDING AND IN FUTURE YOU HAVE THE PLAN TO GROW BIG AND EXPAND, THEN PROPRIETORSHIP AND PARTNERSHIP CANNOT PROVIDE THE RIGHT SUPPORT THAT YOUR BUSINESS NEEDS.
PAN Card copy of directors
Copy of Aadhaar Card/ Voter identity card of directors
Passport size photograph of directors
Landlord NOC (Format will be provided by us)
Electricity/ water bill of business premises
1. It should have a minimum paid-up share capital of Rs. 1 Lakh or more.
2. Restricts the right of the transfer of its share;
3. The number of members are limited to 50 which does not include:
a) Members who are employees of the company; and
b) Members who are ex-employees of the company and were members while in such employment and who have continued to be members after ceasing to be employees
4. Prohibits any invitation to the general public to subscribe for any shares or debentures of the company
5. Prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives.
Moreover, the minimum number of members in a private company is two, and such a company must have the words “Private Limited” as the last part of its name.
Company registration in India is regulated by the Companies Act, 1956 and is administered by the Ministry of Corporate Affairs.
When you chose to register a company in India, an application for name availability has to be filed with Ministry of Corporate Affairs. It also involves obtaining Directors Identification Number and Digital Signatures. Once, name of the proposed company is approved, company registration documents such as memorandum and articles of association has to be prepared and filed with respective Registrar of Companies (ROC) for registration. Upon scrutiny of documents, the ROC registers the Company and issues the Certificate of Incorporation.
Separate Legal Entity:- A Pvt. Ltd. Co. is a legal entity and a juristic person established under the Act.
Limited Liability:- Member’s personal assets are safe and liability of members is limited to the assets of a company.
Uninterrupted Existence:- A company has perpetual existence i.e. it won’t be affected by the change, exit or entry of members.
Borrowing Capacity:- Banks prefer Private limited Companies to render loans over partnership firms and proprietary concerns.
Investment Ready:- Generally, when any business idea clicks, fund is a pre-requisite to growth. A private company is the best option for this as it is easier to raise funds from VCs etc. Automatic 100% foreign direct investment is allowed in many sectors.
Tax Deduction:- Sole traders and partnerships pay income tax. Companies are required to pay Corporation tax on their profits. There is a wider range of allowances and tax deductible costs that can be offset against a company’s profits.
According to section 20 of the Societies Registration Act, 1860, the following societies can be registered under the Act: 'charitable societies, military orphan funds or societies established at the several presidencies of India, societies established for the promotion of science, literature, or the fine arts, for instruction, the diffusion of useful knowledge, the diffusion of political education, the foundation or maintenance of libraries or reading rooms for general use among the members or open to the public, or public museums and galleries of paintings and other works of art, collection of natural history, mechanical and philosophical inventions, instruments or designs.
The main instrument of any society is the memorandum of association and rules and regulations, wherein the aims and objects and mode of management of the society should be enshrined.
A Society needs a minimum of seven managing committee members; there is no upper limit to the number managing committee members. The Board of Management is in the form of a governing body or council or a managing or executive committee.
Independent juridical persons.
Purchase of property.
File Cases.
Exemption from income tax.
Limited Liability of persons who formed society.
Property can pass from one generation to another without to pay any transfer fees or taxes and without any documentation.
The properties of an incorporated body can be easily protected from rival claimants and resulting litigants.
Minimum of seven or more persons.
A society shall registered under Societies registration act, 1860, a separate registrar of societies will be in your area only for Maharashtra state it shall be registered with Charity commissioner.
No stamp paper is required.
The purpose and objects of the society shall be scientific, literary & for charitable purpose.aritable
A trust of immoveable property can be created by two ways, one by a non-testamentary document and another by a testamentary document such as a will. In other words, a trust regarding a immoveable property cannot be created orally but it must be by a document duly registered. A trust of a moveable property can be created either by a document or delivering the property to the trustee with necessary oral directions. If the directions are given in writing it would amount to a trust by a non-testamentary document which may or may not be registered.
A Trust can be created by any person competent to contract or even by a manner with the authority of a competent court and respect of any property which is transferable and over which the author of the trust has dispossessing power.
A Trust may be private and public. When the purpose of the trust is to benefit an individual or a group of individuals or his or their descendants for any legal person and who is capable of holding property, it is a private trust. When the purpose of the trust is to the benefit the public or any section of the public, it is public trust.
A trustee can be any person that is, an individual or a corporate body or a corporate sole, capable of holding property and competent to contract and he must accept the trust.
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