NEW COMPANY FORMATION

PRIVATE LIMITED COMPANY

Note: *10-15 Working Days are required to Incorporate*
  • It is the most prevalent and popular type of corporate legal entity in India.
  • It's registration is governed by the Ministry of Corporate Affairs which is Companies Act, 2013 and the Companies Incorporation Rules, 2014.
  • Minimum of two shareholders and two directors are required.
  • It's the most recommended type of business entity for millions of small and medium sized businesses.
Unique features includes:
  1. Limited Liability Protection to Shareholders
  2. Ability to raise equity funds
  3. Separate legal entity status
  4. Perpetual existence

LIMITED LIABILITY PARTNERSHIP - LLP

Note: *10-15 Working Days are required to Incorporate*
  • It was introduced in India by way of the Limited Liability Partnership Act, 2008
  • It is to provide a form of business entity that is simple to maintain while providing limited liability to the owners
  • LLP is one of the easiest ways of business to incorporate and manage in India
  • Preferred by Professionals, Micro and Small businesses that are family owned or closely-held and should be only used for any business that has plans for raising equity funds during its lifecycle
Some of the Advantages are:
  1. One partner is not responsible or liable for another partner's misconduct or negligence
  2. It is also provides limited liability protection for the owners

ONE PERSON COMPANY

Note: *10-15 Working Days are required to Incorporate*
  • One Person Company in India was introduced through the Companies Act, 2013
  • It support entrepreneurs who on their own can start a venture by allowing them to create a single person economic entity
Some of the Advantages are:
  1. One-Person Company (OPC) is that there can be only one member in a OPC
  2. Minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership (LLP)

PARTNERSHIP FIRM

Note: *1-2 Working Days are required to Incorporate*
  • It is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit
  • Easy to start are prevalent amongst small and medium sized businesses in the semi-organized sectors
There are two types of Partnership firms
  1. Registered Partnership firm
  2. Un-Registered Partnership firm
Some of the Advantages are:
  1. It is advisable to register a Partnership firm due to the added advantages
  2. Partnership firms are created by drafting a Partnership deed amongst the Partners

PROPRIETARY FIRM

Note: *Immediately required to Incorporate*
  • It is a type of unregistered business entity that is owned, managed and controlled by one person
  • One of the most common forms of business in India, used by most micro and small businesses operating in the semi-organised sectors
  • Proprietorships are very easy to start and have very minimal regulatory compliance requirement for starting and operating
  • There was no mechanism provided by the Government of India for the registration of a Proprietorship, except “Udyog Aadhar” which is launched recently
  • The existence of a proprietorship must be established through tax registrations and other business registrations as per the rules and regulations

Looking for quick & best tax advise ?

CONTACT US!