logo
 
     
   
 

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.
 
     
124782 Times Visited