Business Setup Services
BUSINESS SET-UP IN INDIA
Our bunch of services not only include business set-up services but also post incorporation services such as maintenance of books of accounts, necessary post incorporation compliances as applicable to the business module adopted by the entrepreneur under Company Law, Foreign Exchange Management Act (FEMA) RBI Rules & Regulations, GST and under Income Tax Act, 1961 etc.
Frequently asked questions
A Private Limited Company is a Company limited by shares must have minimum paid-up share capital of Rs. One Lakh. It can have maximum 200 (Two Hundred) shareholders and it cannot invite public for subscription of its shares or debentures. Further, the shares of Private Limited Company are not freely transferable under the Companies Act, 2013. 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/Officer of such a Company remains unlimited under certain circumstances. The minimum number of shareholders is 2 (Two). – Click here – Incorporation of Company in India
A Public Limited Company is a Company limited by shares must have minimum paid-up share capital of Rs. Five Lakh. In this case, 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/Officer of such a Company remains unlimited under certain circumstances. The minimum number of shareholders is 7 (Seven).
LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name. Further, in LLP, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct. Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.
Partnership is defined as a relation between two or more persons who have agreed to share the profit /loss of the business carried on by them or any of them acting for all. The owners of a partnership business are individually known as “partner” and collectively as a “firm”.
Partnership is an appropriate form of ownership for medium sized business involving limited capital. This may include small scale industries, wholesale and retail trade; small service concerns like transport agencies, real estate brokers; professional firms like Chartered Accountants, doctors’ clinic, attorney or law firms etc. A partnership firm may be established by way of writing partnership agreement at appropriate value of stamp paper as may be prescribed under the Act of the state where the Registered Office of the Partnership is situated.
A sole proprietorship is the oldest and the most common form of business in India. It is a one-man organisation where a single individual owns, manages and controls the business. Its main features are :-
- Ease of formation is its most important feature because it is not required to go through elaborate legal formalities. No agreement is to be made and registration of the Proprietorship is also not essential. However, the owner may be required to obtain a license specific to the line of business from the local authorities.
- Capital requirement of the Proprietorship is introduced wholly by the owner himself and depends largely on his own savings and profits of his business or unsecured loan from friends and relatives.
- Owner has a complete control over all the aspects of his business and it is he who takes all the decisions though he may engage the services of a few others to carry out the day-to-day activities.
- Owner alone enjoys the benefits or profits of the business and he alone bears the losses.
- The Proprietorship has no legal existence separate from its owner.
- The liability of the proprietor is unlimited i.e. it extends beyond the capital invested in the Proprietorship.
- Lack of continuity i.e. the existence of a sole proprietorship business is dependent on the life of the proprietor, therefore, illness, death etc. of the owner brings an end to the business. The continuity of business operation is therefore uncertain.
However, keeping in view, various Rules & Regulations applicable to the other vertical of the business as stated above, sole proprietorship is most ideal preposition to commence business with minimum possible cost and compliances. Creation of Sole Proprietorship does not require any formal agreement or declaration under any law of our country.