This type of organization in characterized by the fact that ownership and management is separate. The capital of the Company is provided by a group of people called shareholder who entrust the management of the Company in the hands of persons known as Board of Directors. Public Limited companies can sell share on the stock exchange are Public Limited companies.
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The following types of Business entitles are available in India:
It is an unique Identification Number allotted to an individual who is an existing director of a company or intends to be appointed as director of a company pursuant to section 153 & 154 of the Companies Act, 2013.
Every individual, intending to be appointed as a director of the company, can file an application for allotment of DIN.
Central Government (Office of Regional Director (Northern Region), Ministry of Corporate Affairs) will allot the DIN.
Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. Digital certificate can be presented electronically to prove your identity, to access information or services on the Internet or to sign certain documents digitally.
Physical documents are signed manually, similarly, electronic documents, for example e-forms are required to be signed digitally using a Digital Signature Certificate.
The Memorandum of Association (MOA) states the main and ancillary objects of the proposed company.
The Articles of Association (AOA) contains the rules and procedures for the routine conduct of the proposed company.
Authorized capital is the maximum amount of share capital for which a company can issue shares. Authorized capital can be increased by company at any time with shareholders’ approval.
Paid up share capital of a company is the amount of money for which share were issued to the shareholder and for which payment was made by shareholder. Paid up capital will always be less than the authorized capital as the company can not issues shares above its authorize capital.
Well, it completely depends on what you want to do. If you are a single person doing business and are not going to raise any outside investment for at least 3 years then OPC suits you best. Or if you are planning to raise funds then go for Private Ltd registration.
A LLP is typically preferred by Lawyers, Doctors, Designers and other professionals.
A company registration process is a legal process that usually takes 8-15 days for registration. However, a fixed time line can not be committed due to legalities involved in the due process.
No, the process is completely online these days and MCA does not issue a Printed copy. We can provide the printed copy.
On receipt of the certificate of incorporation a newly formed company can start the business operations.
Yes, you can register a company at your residential address as having a commercial space is not necessary to get a company in India.
Yes, a company’s address can be changed after acquiring a commercial space. The process of change of company address is very easy and it can be done within hours if the new address is within the same city.
Yes, legally a salaried person can become a director of a company. However, the terms and conditions mentioned in his/her employment agreement may have some clauses that might require an expert advice. We recommend you to speak to us before proceeding in order to make an informed and wise decision.
Yes, an existing company can be converted into any other form of business entity by complying the provisions of Companies Act, 2013.
|Particulars||One Person Company||Private Limited Company||Limited Liability Partnership|
|Recommended For||Solo promoters||Start-ups and growing companies||Professional services firms|
|Limited Liability Protection||Yes||Yes||Yes|
|Tax Advantages||Few benefits||Few benefits||Most Beneficial|
|Registration Authority||Registrar of Companies (ROC)||Registrar of Companies (ROC)||Registrar of Companies (ROC)|
|Management||A single Director is required and a nominee as a successor||Minimum 2 Directors are required||Minimum 2 Partners are required|
|Board Meeting||2 Board Meetings to be held in a year||4 Board Meetings to be held in a year||No such requirement|
|Statutory Auditor||Mandatory appointment||Mandatory appointment||Mandatory Appointment if, capital contribution exceeds Rs.25 Lacs or Turnover Exceeds Rs.40 Lacs|
|Fines & Penalties||Limited||Limited||Unlimited|
|Conversion||Can be converted to Private Limited and Public Limited||Can be converted to Public Limited and LLP||No provision for Conversion|
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