Legal Munshi

Business Registration

Proprietorship

  • Sole proprietorship is a type of business firm where a single individual handles the entire business organization. Proprietor bears all the profits and losses of the firm. It does not separate the owner from the company. There is no separate law that governs sole proprietorship. The sole proprietorship is not a legal entity. The owner signs all the contracts under his name and hence the company does not separate legal identity.

Benefits

  • Easy Formation
  • Tax benefits (no separate filing of income tax)
  • No filing of business reports to stock exchange
  • Owner entitled to all the profits
  • Control over the Company (Owner makes all the decision for the company)

Partnership

  • According to the Indian Partnership Act 1932, Partnership is “the relation between persons who have agreed to share the profits of the business carried on by all or any one of them acting for all”. Partnership is formed by an agreement-oral or written-among the partners. In a Partnership firm each partner has unlimited liability. The partnership firm may be carried on by all partners or any of them acting for all, each partner is entitled to represent the firm and other partners. In this way, a partner is an agent of the firm and of the other partners.

Benefits

  • Flexible like Proprietorship
  • Easier to formEasier to form
  • More capital due to more partners
  • Combined knowledge and skills of all the partners
  • Risks are diffused between all the partners

One person company

  • A one person company is a Company who has a single member, but has its own existence. One Person Company is a beneficial to all those entrepreneurs, who are willing to start a business, with sufficient ideas but insufficient funds. Only One member is required to start a one person company.

Benefits

  • Separate legal entity
  • Only one member
  • Exemptions under Companies Act 2013
  • Nominee (in case of death or incapacity of single member)
  • Conversion in to Private Limited
  • Loan and Investment are easily available

Limited Liability Partnership

  • A limited liability partnership is a form of business partnership where all of the owners have limited personal liability for the financial obligations of the business. It is similar to the general partnership but there are no general partners in limited liability partnership. However, each partner enjoys limited personal liability for the other partners' acts. Unlike the general partnership, partnership in LLP does not get terminated by the death or insolvency of the limited partners. It is governed by Limited Liability Partnership Act of 2008.

Benefits

  • Easier to register
  • No minimum capital requirement
  • Lesser compliances than a private limited company
  • Easiest form of business(easier to operate)
  • Separate legal entity (separate person in the eyes of law)
  • Partner are not liable for the act of another partner
  • Can provide loan to partners unlike in private ltd company

Private Limited

  • Private Company is a company having a minimum paid-up share capital as may be prescribed in the MOA and its articles restricts the right to transfer its shares and limits its number of members from minimum 2 and Maximum 50. A private limited company must have a minimum paid up share capital of Rupees One Lakh. A Private limited co. does not invite public to subscribe to its share capital.

Benefits

  • Limited Liability
  • Continued Existence
  • Restricts the right to transfer shares
  • Lower tax compared to other types of companies
  • Separate legal entity
  • Borrowing capacity
  • Capacity to sue and be sued
  • Can own property in its own name

Public Limited

  • Public ltd company is company which is not a private limited company. It has a minimum of 7 members, and maximum no limit. It invites the general public to subscribe to its shares. The shares can be transferred freely through stock exchanges. A public company must have a minimum paid up share capital of Rupees 5 lakhs. A public limited company must have at least 3 directors.

Benefits

  • Separate Legal Entity
  • Limited Liability
  • Easy Funding
  • Brand Value
  • Tax advantages
  • Continued Existence
  • Easy transfer of shares through stock exchange
  • Wide expansion of the firm

Nidhi(Section 406)

  • As per section 406 of the Companies Act 2013, “Nidhi” means a company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit, and which complies with such rules as are prescribed by the Central Government for regulation of such class of companies. Nidhi companies are non-banking Finance company which is approved by the Central Government. They are incorporated in the nature of Public Limited company. So, they comply with two set of rules, one is of Public limited company and another is of Nidhi rules, 2014. The name of the company needs to be unique and should end with “Nidhi Limited.

Benefits

  • Ease of formation
  • Help to channelize savings
  • No outside intervention
  • Lower rate of credit than the market rate
  • Separate legal entity
  • Uninterrupted existence
  • Going concern
  • Limited liability

Producer

  • A producer company is a body corporate registered as Producer Company under Companies Act and shall carry on or relate to any of following activities classified broadly as follow:
    • Production, harvesting, processing, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit.
    • Rendering technical services, consultancy services, training, education, research and development and all other activities for the promotion of the interests of its Members.
    • Generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce.
    • Promoting mutual assistance, welfare measures, financial services, insurance of producers or their primary produce.

Benefits

  • Tax benefits
  • Credit facilities
  • Loans and advances from NABARD

Association not for profit (Section 8)

  • Section 8 Company is a Company that is licensed under Section 8 of the Companies Act, 2013 for promoting research, social welfare, religion, charity, commerce, art, science, sports, education, and the protection of the environment or any such other object. The profits of the company or any other income is applied for promoting only the objects of the company and no dividend or profit is paid to its members. The company is registered for charitable or not-for-profit purposes only. Minimum 2 members is required to start the company

Benefits

  • Tax benefits
  • Exempted from using the title “Limited”
  • No minimum capital requirement
  • Separate legal entity
About us
Services
Usages
Popular Services
Payments

Employee Login

Legal Munshi is an online platform for connecting or referring professionals and do not claim to be a legal firm. We do not provide legal services ourselves. All the information on this website is for reference only and should not be considered as a legal opinion. The information on this website is for the purpose of reference,knowledge only and should not be relied upon as legal advice or opinion.

All rights reserved ©2020 Legal Munshi | This website is made with by Slang Software