company registration types in India that makes to fall in love with business

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

• By- EARNLOGIC

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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.

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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.
• Its 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.

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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.

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

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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 wont be liable
  for any liability beyond this initial amount of 1
  lakh.

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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.

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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.

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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.

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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.

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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 theyre 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.

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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.

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LIMITED 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.

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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..

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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 info_at_earnlogic.in