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Formation of Companies

 

Formation of Companies

We provide End to End services right from selecting the name, Preparation of Memorandum, Articles, Up to Registration with RoC.

Most of the functions are online only and hence presently we outsource this work to our Networking partners.

  • Private Limited Companies
  • Limited Liability Partnership
  • Foreign Branch Registration
  • One Person Company
  • Partnership Firms
  • HUF
  • Trusts

Private Limited Company

Private Limited Company can be formed with a minimum of two members and a maximum of 200 members. Private limited must also have minimum of 2 directors which can extend up to 15.

There are multiple factors an entrepreneur should consider before choosing the type of business one plans to register. The size and nature of business, fund raising, scale etc should be considered before choosing the type of business entity. Here are some of the reasons why you should register your business as a private limited company.

Limited Liability

One of the main advantages of starting a private limited company is limited liability. Limited liability means limited exposure to financial risk by investors of a company. Limited liability means the shareholders liability in the company is limited to the capital amount invested in the company.

For example, if Sam invested Rs 100,000 to start a private limited company. The liability is his investment of Rs 100,000. In other words, his can potential loss cannot be beyond Rs 100,000. He won’t be liable for any liability beyond this initial Rs 100,000.

Business Continuity

Private companies enjoy perpetual succession. What does perpetual succession mean? Shareholders may come and go, but the company still continues to be in existence. The company is unaffected by the death of any of its shareholders or the transfer of its shares to another person.

For example, in a partnership firm, a change in the membership leads to dissolution of the existing partnership whereas in a private limited company, one shareholder may transfer his shares to another, but the company still continues to operate.

Fund Raising

Financial institutions such as banks, venture capital funds, private equity funds lend their resources more willingly to private limited companies that to other forms of business organizations.

Banks are more likely to lend to limited companies because they can use the assets of the company as security for the loan. Venture capital firms invest in a private limited company in exchange of equity shares; this cannot be achieved in a partnership firm.

Transfer and Exits

Limited companies are easier to sell as compared to partnership firms. Ownership is represented by equity or preference shares and these can be easily sold without affecting the activities of the company.

Salaries to Directors

There is no maximum limit on the salary being paid to directors; whereas there is a ceiling limit on the salary paid to partners of a partnership firm as per Income Tax Act, 1961.

Documents Required

Pan copy is mandatory

ID Proof - Aadhar Card/Driver's License/Passport/Voter's ID- Any one

Address Proof - Bank Statement/Telephone/Mobile Bill/Electricity Bill – Any one
    Note: [all the above documents needs to be self attested and by Gazetted Officer]

Passport Size photographs (4 each)

Address Proof of place of business (Electricity Bill/Tax Paid receipt) and no Objection letter from owner of the premise

Limited Liability Partnership

Limited Liability Partnership can be formed with a minimum of two designated partner and there is no maximum limit on the partners.

Documents Required

Pan copy is mandatory

Address Proof - Bank Statement/Telephone/Mobile Bill/Electricity Bill – Any one. Note: [all the documents needs to be self attested and by Gazetted Officer]

Passport Size photographs (4 each)

Address Proof of place of business (Electricity Bill/Tax Paid receipt) and no Objection letter from owner of the premise

Foreign Branch Registration

Foreign Company Registration In India

In India the people from other countries can start their business by following our government rules and regulations. The Major cities in India like Chennai, Bangalore, Mumbai, New Delhi, Kochi, and Coimbatore have already occupied with most of the foreign companies branch offices. Every business people have their ultimate intention towards the global market by attaining their respective business in a stable stage. We offers you perfection on the service for Foreign branch office setup in Bangalore- India. It may be the first time to you for this registration process so that we are providing you sufficient information about the foreign branch office in India.

Open foreign branch office in India

Expansion of business is the process behind the branch office setup of any company anywhere in the world. Making an attention towards several locations in their business will help to reach the product or service to those places. Expansion of small market into a large one is the motive of every branch office of the companies. The reach in market will raise the demand for the product or service depending upon market condition. Once the demands in business reach the optimum level then it is the time to enhance the company’s every aspect for the future market. So the concerned authorities have set plans for the branch offices in the specified location based on the market. Every time a branch is setting up in the name of the parent company still the requirement of registration is important. The companies can open their branches either in the same country with several locations or in foreign countries.

Documents Required

Indian Resident Director

Pan copy is mandatory for the Indian Resident

ID Proof - Aadhar Card/Driver's License/Passport/Voter's ID - Any one

Address Proof - Bank Statement/Telephone/Mobile Bill/Electricity Bill – Any one. Note: [all the documents needs to be self attested and by Gazetted Officer]

Foreign Company

MOA.AOA and Registration certificate Others

Others

Passport Size photographs (4 each)

Address Proof of place of business (Electricity Bill/Tax Paid receipt)

Foreign Director

Passport

Utility Bill

Drivers License. Note: [all the documents needs to be self attested and by Gazetted Officer]

One Person Company

One Person Company (OPC) a separate legal entity with just one member. Unlike a private limited company which requires minimum 2 shareholders and 2 directors, an OPC can be formed with only one shareholder (there is a nominee director, but with no power until the original director is incapable of entering into contract). OPC is registered under the Companies Act 2013 with the Ministry of Corporate Affairs. Do not get confused with a sole proprietorship. Sole Proprietorship is not the same as One Person Company.

Entrepreneurs who register as an OPC can run the business without worrying too much about litigations and liabilities getting attached to the personal assets. One Person Company has a separate legal identity from its shareholders i.e., the company and the shareholders are two different entities for all purposes.

For example1, if Sam invested Rs 100,000 to start a One Person Company. The liability is his investment of Rs 100,000. In other words, his potential loss cannot be beyond Rs 100,000.

On the other hand proprietorship does not have a separate legal identity from its members.

The existence of One Person Company is not dependent upon its members and hence, it has a perpetual succession i.e., death of a member does not affect the existence of the company.

For example2, in a partnership firm, a change in the membership leads to dissolution of the existing partnership whereas in a private limited company, one shareholder may transfer his shares to another, but the company still continues to operate.

Other the other hand, sole proprietorship is an entity whose existence depends on the life of its members and death or any other contingency may lead to the dissolution of such an entity.

Documents Required

Pan copy of the Director and Nominee

ID Proof of the Director and Nominee - Driver's License/Passport/Voter's ID- Any one

Address Proof of the Director and Nominee - Bank Statement/Telephone bill/Mobile Bill/Electricity Bill – Any one. Note: [all the documents needs to be self attested and by Gazetted Officer]

Passport Size photographs (4 each)

Partnership Firm

One or more person can join together a start a partnership firm. The partnership firm is formed as soon the parties enter into the partnership deed.

Documents Required

Pan copy of the partners

Address Proof of partners

Passport Size photographs (1 each)

Address Proof of place of business – Rental Agreement