We are a leading Business Incorporation Services company based in Bhiwadi, Rajasthan. We aid in the setting up of a number of commercial establishments and companies such as private limited company, public limited company, one person company, limited liability partnership (LLP), partnership firm, proprietorship firm, shop establishment, NGO, and many. We also aid foreign companies in setting up their establishments in India which could include foreign subsidiary company, a branch, liaison or project office.
Details :
- Private Limited Company
- Public Limited Company
- One Person Company
- Limited Liability Partnership (llp)
- Partnership Firm
- Proprietorship Firm
- Shop Establishment
- Section 8 Companies
- Producer Company
- Nidhi Company
- Subsidiary Company
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- Business registration or not-for-profit registration from the relevant regulators would be required for starting a business or not-for-profit organization in India. Some of the most common business registration include Proprietorship Registration, Partnership Firm registration, Limited Liability Partnership Registration, Private Limited Company Registration, One Person Company Registration and Limited Company Registration. In addition, business registration could also include certain special registrations like Nidhi Company Registration, NBFC Registration and Producer Company Registration.
- Not-for-profit registration in India include the formation of Section 8 Company, Trusts and Societies. Based on the activity to be performed, CorpPro can help you with your Business Registration ranging from Company to Trust through our network of more than a thousand Business Experts across India. Starting a business in India? Talk to an CorpPro Advisor.
Sole Proprietorship
- A sole proprietorship is a business that is owned, managed and controlled by one person. It is one of the most common forms of business in India, used by small businesses operating in the unorganized sectors. Proprietorships are very easy to start and have very minimal regulatory compliance requirement for getting started. However, after the startup phase, proprietorship's do not offer the promoter a host of other benefits such as limited liability, separate legal entity, independent existence, transferability, etc., which are desirable features for any business. Therefore, proprietorship's are suited for unorganized, small businesses that will have a limited existence.
- There is no mechanism provided by the Government of India for the registration or incorporation of a Proprietorship. Therefore, the existence of a proprietorship is established only by tax registrations and other business registrations that a Proprietorship is required to have as per the rules and regulations. At CorpPro, we can help you establish an identity for your Proprietorship by obtaining the relevant registrations.
Partnership
- A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors. With the introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnership.
- There are two types of Partnership firms, registered and un-registered Partnership firm. It is not compulsory to register a Partnership firm; however, it is advisable to register a Partnership firm due to the added advantages. Partnership firms are created by drafting a Partnership deed amongst the Partners and CorpPro can help start a registered or un-registered Partnership firm in India.
OPC (one person company)
- The concept of One Person Company (OPC) in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. One of the biggest advantages of a OPC is that there can be only one member in a OPC, while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership. Similar to a Company, a OPC is a separate legal entity from its members, offers limited liability protection to its shareholders, has continuity of business and is easy to incorporate.
- Though a One Person Entity allows alone Entrepreneur to run a business with Limited Liability protection, a OPC does have a few limitations. For instance, every OPC must nominate a nominee Director in the MOA or AOA who will become the owner of the OPC in case the promoter Director is disabled. Also, a OPC must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year. Therefore, it is important for the Entrepreneur to carefully consider the features of a OPC prior to incorporation. CorpPro can help incorporate a One Person Company (OPC) in India.
LLP (Limited Liability Partnership)
Limited Liability Partnership has been introduced in India by way of Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business organization that is simple to maintain while at the same time providing limited liability to the owners. A Limited Liability Partnership combines the advantages of both the Company and Partnership into a single form of organization and one partner is not responsible or liable for another partner's misconduct or negligence. Therefore, all partners have a form of limited liability for each individual's protection within the partnership, similar to that of the shareholders of a corporation. However, unlike corporate shareholders, the partners have the right to manage the business directly. An LLP also limits the personal liability of a partner for the errors, omissions, incompetence, or negligence of the LLP's employees or other agents. LLP is one of the easiest form of business to incorporate and manage. CorpPro can help incorporate a Limited Liability Partnership (LLP) in India.
Pvt Ltd Companies
- Private Limited Companies is the most common and suitable form of entity for carrying out business in India with a long term objective. A Private Limited Company is Incorporated and Governed by the Indian Companies Act 2013. Private Limited Company is a Purely Separate Legal entity distinct from its members and directors. The business under this structure can be done by making investment through the equity shares in the Company. It has the advantage of limited liability, greater stability and recognition. The Basic Requirement for a private Limited Company in India is to have Minimum Two Directors and Two Shareholders.
- CorpPro can help incorporate a private limited company in India.
- These are closely held businesses usually by family, friends and relatives.
- Private companies may issue stock and have shareholders Their shares need not be traded on public exchanges and are not required to be issued through an initial public offering.
- Shareholders may not be able sell their shares without the agreement of the other existing Shareholders.
What are The Benefits or advantages to work as a private limited company?
- Limited Liability - If the company experience financial distress because of normal business activity, the personal assets of shareholders/owners will not be at risk of being seized by creditors.
- Separate Legal Entity - A company is a legal entity and a juristic person established under the Act. Therefore a company has legal capacity to own property and incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts
- Continuity Of Existence - The existence of company cannot be affected by owners. They may come, change and go but the company will run until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.
- Minimum Number Of Shareholders - The Minimum Members need to start the business are only 2.
- Scope Of Expansion Is Higher - A company has various options for borrowing of funds. It can raise funds by issuance of shares, debentures etc. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.
- Easy Transferability Of Ownership - The Ownership(shares) of Company is easily transferable by a shareholder to any other person after Filing and signing a share transfer form at any price mutually agreed between both. Therefore, the Capital infused can be taken back easily
- Owning Property - A company being a legal person, can acquire, own, enjoy and alienate, property in its own name. No shareholder/director can make any claim upon the property of the company so long as the company is a going concern.
- Capacity To Sue And Be Sued - The company being legal person has full right like a natural person to institute legal proceedings against or to bring a suit in a court of law and also can be sued in its own name.
- Multiple Relationships - In a company a person can at the same time be a shareholder, creditor, director and also an employee of the company.
Public Limited Companies
- Public Companies have inherent advantages over private companies, including the ability to sell future equity stakes and increased access to the debt markets. A Public Limited Company is Incorporated and Governed by the Indian Companies Act 2013. Public Limited Company is a purely separate legal entity distinct from its members and directors. It has the advantage of limited liability, greater stability and recognition. The basic requirement for a Public Limited Company in India is to have minimum three directors and seven shareholders.
- CorpPro can help incorporate a public limited company in India.
- Public Companies can issue shares to the public through the stock exchanges or stock market.
- These can also raise additional capital by issuing debentures and bonds from the public on the basis of their financial performance.
- These are commonly known as Publicly Traded Companies or Publicly Held Companies.
- Shares of these Companies are freely transferable that provides more liquidity to its shareholders.
- Limited Liability - It is an important benefit of incorporation, once shareholders have paid for their shares; the members of the company have no further liability to contribute towards debt incurred by the company.
- Separate Legal Entity - A company is a legal entity and a juristic person established under the Act. Therefore a company has legal capacity to own property and incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts.
- Access To Finance - A Public Company can easily obtain finance from banks and other financial institutions as these types of institutions are more willing to extend finance to this type of company than to smaller forms of business entities.
- Brand Awareness - Since these types of companies are often listed on stock exchanges, people will be easily and quickly recognize the brand or name of the company.
- More Capital - Since a public company can sell its shares to the public thus the potential capital that can be raised is larger. A sole proprietorship or ordinary business partnership cannot usually raise the same amount of capital without additional leverage.
- Capacity To Sue And Be Sued - The Company being legal person has full right like a natural person to institute legal proceedings against or to bring a suit in a court of law and also can be sued in its own name.
- Freely Transferable - Shares of these types of companies are freely transferable that provides more liquidity to its shareholders.
- Continuity Of Management - The management of a company might be separate from its ownership. Management of the business can then continue in spite of any changes in shareholders. Employees can be promoted to senior management positions without necessarily holding any shares in the company. They can also be given shares as an incentive.
- Owning Property - A company being a legal person, can acquire, own, enjoy and alienate property in its own name. No shareholder/director can make any claim upon the property of the company so long as the company is a going concern.
- Ability To Tap Financial Markets - The biggest advantage to these types of companies is their ability to tap the financial markets by selling stock (equity) or bonds (debt) to raise capital (cash) for expansion of business activities.
Section 8 Companies
- Section 8 Company is named Section 8 of the Companies Act, 2013, which pertains to a established 'for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object', provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members. Therefore, Section 8 Company or Section 25 Company is a company registered under the Companies Act, 2013 for charitable or not-for-profit purposes.
- A Section 8 Company is similar to a Trust or Society; expect, a section 8 Company is registered under the Central Government's Ministry of Corporate Affairs. Trusts and Societies are registered under State Government regulations. A section 8 company has various advantages when compared to Trust or Society like improved recognition and better legal standing. Section 8 company also has higher credibility amongst donors, Government departments and other stakeholders. CorpPro can help incorporate a Sec.8 Company in India.
Subsidiary Company
- There is a lot of interest among foreign companies to start their operations in India and tap into one of the largest and fast growing market, and have access to some of the best human resources in the world. A Foreign National (other than a citizen of Pakistan or Bangladesh) or an entity incorporated outside India (other than entity incorporated in Pakistan or Bangladesh) can invest and own a Company in India by acquiring shares of the company, subject to the FDI Policy of India. In addition, a minimum of one Indian Director who is a Indian Director and Indian Resident is required for incorporation of an Indian Company along with an address in India.
- Investment and acquisition of equity shares of a Company can be broadly divided into two categories - investment under automatic route and investment under Government approval route. The automatic route requires no requirement of any prior regulatory approval for investment in equity shares of an Indian business and only post facto filing/intimation with the Reserve Bank of India within 30 days of receipt of investment money in India and filing of prescribed documents and particulars of allotment of shares within 30 days of allotment of shares to foreign investors. Foreign Direct Investment of upto 100% is allowed under the automatic route in most activities/sectors in India. Investment in activities / industries where automatic route is not available can be made with the approval of the Government under the Government Approved FDI method. CorpPro can be your legal and professional partner in India to get your New Company / Subsidiary in India started quickly and cost-effectively.
Producer company
- Producer Company is a company registered under the Companies Act, 2013, which has the objective of production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit. Produce are things that have been produced or grown, especially by farming. Therefore, a Producer Company deals primarily with agriculture and post harvest processing activities.
- Over 85% of the Farmers in India are small and marginal farmers with land holdings of less than 2 hectares. This fragmentation in farmers and farm lands, leads to disorganization and it is not viable for Indian farmers to adopt the latest technologies. By organization of these farmers into producer companies, economies of scale can be unlocked and the livelihood of farmers can be improved. Thus the concept of producer company is aimed at empowering farmers by creating clusters of farmers organized as a Producer Company. CorpPro can help incorporate a Producer Company in India.
Nidhi company
- Nidhi Company is a company registered under the Companies Act, 2013, which has a sole objective of cultivating the habit of thrift and savings amongst its members. Nidhi companies are allowed to take deposit from its members and lend to its members only. Therefore, the funds contributed for a Nidhi company are only from its members (shareholders) and used only by the shareholders of the Nidhi Company.
- Nidhi company is a class of NBFCs and RBI is empowered to issue directions to them in matters relating to their deposit acceptance activities. However, in recognition of the fact that these Nidhis deal with their shareholder-members only, RBI has exempted the notified Nidhis from the core provisions of the RBI Act and other directions applicable to NBFCs. Therefore, Nidhi Company is an ideal entity to take deposit from and lend to a specific group of people.
- CorpPro can help incorporate a Nidhi Company in India.
Bhiwadi, Rajasthan, India
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