A sole
proprietorship, also known as the sole trader or simply a proprietorship, is a
type of business entity that is owned and run by one individual and in which
there is no legal distinction between the owner and the business. 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.
Proprietorship's 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.
Preetham Shetty & Co. can help start-up a
Proprietorship in 7 to 14 days, subject to Government processing time. Since
the proprietorship is itself not distinguishable from its owner hence there is
no registration or approval is required to start a proprietorship business.
Proprietorship's do not have a process of incorporation. Therefore, our Business
Advisers will advise you on the way the identity of the Proprietorship business
can be established through other Government registrations.
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 Preetham Shetty & Co.,
we can help you establish an identity for your Proprietorship by obtaining the
relevant registrations.
Hindu Undivided Family (HUF) Registration
HUF – Joint Hindu Undivided Family Business
is a distinct type of organization which is unique to India. Hindu Undivided
Families are the form of organizations has separate legal entity for the
purpose of tax assessment. As the name suggests, an HUF is a family of Hindus.
However, even Buddhists, Jains and Sikhs are regarded as Hindus, and can,
therefore, set up HUFs. The concept of an HUF has basically evolved from
ancient Hindu law. The HUFs have been defined under the Hindu law as a family,
which consists of male lineally descended from a common ancestor and included
their wives and unmarried daughters.
The relation of HUFs arises from the status
not from legal contracts. Creating HUFs are the best possible way for an assessee
to save taxes.
The registration of Joint Hindu Undivided
Family is recommended as it helps in protection against infringement; The
process of Joint Hindu Undivided Family is mention in below FAQ,
Where explaining the documentation and process of creation of HUF. We are
specialist in the Joint Hindu Undivided Family registration. We adopt a
transparent method of pricing which is fixed and certain and same to all our
customers. We do not have any discount policy. Our expertise in creation of HUF
is well known in India and outside India. We have helped many Individuals in
this regard.
Partnership Company Registration
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 Preetham Shetty & Co. can help
start a registered or un-registered Partnership firm in India.
One Person Company Registration
With the introduction of the Companies Act,
2013 the concept of OPC (one person company) was introduced to support
entrepreneurs who on their own are capable of starting a business by allowing
them to create a single person economic entity. Only one single member is
required to incorporate an OPC, which is the biggest advantage of OPC over
private limited companies & partnerships. Similar to a Company, an OPC is a
separate legal entity from its members, offers limited liability protection to
its shareholders, is easy to incorporate and continues in the foreseeable
future.
This is a new concept introduced by the Companies’ Act 2013 and is available for a business with a capital up to Rs.50
Lacs and a turnover up to Rs.2 Crore. The one-person company has some benefits
in the companies act in terms of non-applicability of some provisions of the
new act.
Limited Liability Partnership (LLP) Registration
Limited Liability
Partnership Act, 2008 brought with itself the concept of LLP. The benefits of
LLP are that it is simple to maintain & it provides the privilege of
limited liability to the owners. Thus, combines the benefits of both company
& partnership into a single organization. One partner is not responsible or
liable for another partner's misconduct or negligence. Therefore, all partners
have a sought of limited liability for each individual's protection within the
partnership, similar to that of the shareholders of a corporation.
The only difference
between the company and the LLP is that, the partners have the right to manage
the business directly. Also, the personal assets are free from the errors,
omissions, incompetence, or negligence of the LLP's employees or other agents.
Thus, LLP is one of the easiest forms of business to incorporate and manage.
Private Limited Company Registration
A private company
can be incorporated by following the provisions and regulations stated under
the Company's Act 2013. The minimum number of persons required for the
incorporation is 3. Whereas the maximum limit of the number of persons is 50.
There are many benefits that are achieved by a private limited company. It
enjoys a greater stability, legal identity, it is flexible and a greater
combination of capital. This is supported with the diversified and different
abilities of capital accumulation. The private company can be easily identified
by just looking at the name, number of members it incorporates, the
managements, directors etc. The number of directors who are to incorporate must
be mentioned in Articles of Association. However, the private companies who
enjoy its distinguished legal entity and the private companies which are the
subsidiary of the other public companies is differentiated in Company's Act.
Preetham Shetty and
Co can write and structure your company's objective, purpose, constitution,
vision and mission statement, which will appeal to all stakeholders Help in
selecting a very catchy name of your company and do the registration, and
complete all the government procedures and compliance Do INC-32 Filing and File
for PAN & TAN.
Public Limited Company Registration
A limited company grants limited liability to
its owners &management in which it’s belong. Being a public company allows
a firm to sell shares to investors this is beneficial in raising capital. it
has required more stringent regulatory requirements as compared to a Pvt. Ltd
Company.
A Public Ltd Company has almost all the
characteristics of a private limited company. A Public Limited Company, in
addition to the steps followed by a Private Limited Company has to obtain a
certificate of Commencement of Business before they can commence the business.
Indian Subsidiary
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.
When an Entity
which is incorporated outside India (i.e. Foreign Country), makes 100% Foreign
Direct Investment (FDI) as per Indian FDI policy, the Indian company
incorporated for this purpose is said to be wholly owned subsidiary of that
foreign entity. Under the current foreign investment policy, a wholly owned
subsidiary can be established either under the automatic route, if the
conditions specified therein are complied with (specific high priority
industries) or obtain an approval from the FIPB. This is the easy and best
method for setup a foreign based Company in India, where entire hold on share
capital of a Indian company is hold by Foreign Based Entity.
Liaison Office in India
Foreign companies
planning to set up their business operations in India need to start a liaison office.
The main purpose of starting a liaison office is to explore possible business
opportunities in India by gathering relevant business information. This helps
the companies to develop a business strategy to tap the existing business
potential in India. A liaison office also acts as a marketing channel to
provide business information about the parent company and their products to the
prospective clientele in India.
Section 8 Company
Generally, companies are promoted with an object of making profit by carrying commercial transactions. But a company can be registered with charitable motive with the object not to make any profit also. These companies must be formed with an object to promote of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object. Meaning of Non-profit making Company. The name of a Company registered under Section 8 of the Act, the name shall include the words foundation, Forum, Association, Federation, Chambers, Confederation, council, Electoral trust etc.
As per section 8 of Companies Act 2013,where it is proved to the satisfaction of the Central Government that a person or an association of persons want to register themselves under section 8 as a limited company for the furtherance of above mentioned objects, the Central Government may, by license issued in prescribed manner allow that person or association of persons to be registered as a limited company under this section without the addition to its name of the word “Limited”, or as the case may be, the words “Private Limited” , and thereupon the Registrar shall, on application, in the prescribed form, register such person or association of persons as a company under this section.
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