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Company Formation

  • Private Limited
    • Limited Liability
      Shareholder enjoys limited liability to the extent of capital invested. Shareholder's personal assets protected in the event of the company's insolvency.
    • Separation of Management & Shareholders
      Management & shareholders can be separated. A shareholder can invest the fund in fruitful business without managing & Management can operate their business without frequent interruption of investors.
    • Separate Legal Entity
      A company is a Separate legal entity from its Owners and Management in the eyes of law.
    • Perpetual Succession
      A business of the Company will not affect if there is any change in the ownership of the company.
    • Easy Equity Funding
      Startups businesses can easily raise funds from investors on an equity basis.
    • Taxation
      Every Pvt Ltd Company enjoys for recently announced start-up tax exemption, if meets eligibility criteria.
  • Public Limited
    • Limited Liability
      Liability of shareholder for the losses of the company is limited to their contribution only.
    • Perpetual Succession
      A business of the Company will not affect if there is any change in the ownership of the company.
    • Listing on Stock Exchange
      Public Company can be listed on stock exchange and raise funds by way of public issue.
    • Transferable Shares
      Shares of a public company are freely transferable between its members and non-members.
    • Disclosure & Transparency
      The public company ensures stringent disclosure compliances. Financials of the company is in public domain.
    • Minimum Directors & Shareholders
      Minimum 3 directors, Minimum 7 shareholders required and there is no limit on maximum shareholders of the company.
  • One Person Company
    • Limited Liability
      OPC is sole proprietorship business with limited liability features.
    • Single Owner
      The key feature of OPC is One Person Company managed by a single owner.
    • Separate Legal Entity
      OPC is a separate legal entity from his/her owner in the eyes of law.
    • Share Transferability
      OPC owner's equity cannot be transferred freely to others.
    • Lesser Compliances
      OPC requires less compliances as compare to private & public limited.
    • Nomination
      One nominee required who will take over OPC in case owner absence.
  • Partnership Firm
    • Concept
      Partnership firm is a business form in which 2 or more individuals can join hands to do business.
    • Easy Formation
      Partnership firm can be easily & quickly registered in comparision to other form of business.
    • Low Cost Registration
      As comparison to other business form, cost of registering partnership firm is very low.
    • Tax Benefit
      More Tax Saving as compare to sole proprietor business form.
    • Sharing of Risk
      Individuals having same business goal can form and share risk & rewards.
    • Compliances & Disclosure
      Least compliance & disclosure required as compare to other business form.
  • Limited Liability Partnership
    • What is LLP ?
      Limited Liability Partnership is a separate legal entity from its partners and liability of each partner is limited to their contribution.
    • Benefits
      LLP has perpetual succession and contains salient features of Company and Partnership.
    • Formation & Cost
      Easy to form LLP and registration cost is low in comparison to company formation.
    • Compliance & Disclosure
      LLP requires less disclosure and compliance requirement is less as compare to other entities.
    • Audit Requirement
      No mandatory requirement of statutory audit upto a certain limit i.e. Turnover or Contribution.
    • Taxation
      No income tax chargeable on profit distribution in partner's hand.
  • Sole Proprietorship
    • Easy incorporation
      Sole Proprietorship is the easiest form of business entity in the terms of procedure of establishment.
    • Minimal Cost
      The cost involved in the formation of a sole proprietary firm is very less as compared to other forms of business.
    • Lesser compliances
      As compared to other business forms, there are fewer legal compliances with respect to incorporation, operation and taxation.
    • Independent control
      As Sole Proprietor is the single owner of his business, he surely has independent control over his operations.
    • Single Promoter
      This is the only form of business entity that can be promoted by a single individual.
    • No corporate tax liability
      As per the direct tax laws of India, the sole proprietary entities are not liable to pay flat corporate profit tax, unlike other business forms.
 
     
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