Company Registration in Chennai

Dr.APJ Abdhul kalam once said, Dream Big. If your dream is to become a Entrepreneur, this article is for you.

If you want to start a Business, what you need?. Firstly we need a COMPANY. Many of us are interested in starting a Business, but we doesnt know how to start a business. If yes, you are at the right page.

Before going into details, we shall see, what are the types of Companies/Firms.

1. Proprietorship

2. Partnership

3. Limited Liability Partnership (LLP)

4. Private Limited

5. One Person Company (OPC)

6. Public Limited

A. Proprietorship :

If, I have good experience in a Industry but I am new to business, then it is advisable to go for a Proprietorship. What are the advantages in a Proprietorship Firm

a. Single owner

b. Tax is calculated based on slab

c. Effortlessly formable.

Actually there is no compulsory registration needed for forming a proprietorship firm. By simply registering under UDYOGADHAR, you are eligible to open a Current account (Just an option)

B. Partnership:

I hold good knowledge on certain domain, but I don't have capital to start a business. Hence  both the people join together to start a business. This is nothing but Partnership Firm. The profit and loss is shared in the proposition based on the capital contribution by each partner.

Two types

1. Registered Partnership Firm

2. Unregistered Partnership Firm

Both the above are recognized way of forming a Partnership Firm.

The common disadvantages in the above Proprietorship and partnership fir is UNLIMITED LIABILITY ie the liability is not limited.

C. Limited Liability Partnership: 

Limited Liability Partnership, this is as similar as that of a Partnership firm but its a legal entity separate from its partners. Further as compared with a normal partnership it is more advantageous because the liability is limited.  This is a combination of both Partnership and Corporation. As it is of Limited Liability nature, the personal property of partners cannot be used for paying off the debts arising out of loss.

D. Private Limited Company: 

Pvt Ltd is one of the most popular form of business entity in India. The minimum requirement is TWO DIRECTORS. In the legal view, the Directors are not the owners of the Company, they are merely agents of it. The minimum share capital that is required to start a Private limited Company is 1,00,000/-.

Documents that are required to start a LLP & Pvt Ltd.

1. Address proof of all the Directors

2. ID Proof of all the directors

3. PAN Card

4. Rental Deed & EB Card

Advantages of Limited Liability Partnership and Private Limited are as follows:

1. Liability is Limited: in both the cases the Liability is Limited which is more advantageous as compared with Proprietorship or Partnership

2. Perpetual succession: The death of the director or partner will not affect the life of the Corporation.

3. Acquire property: A corporation can acquire a property in its own company name which is not possible for unregistered partnership or proprietorship. 

E. One Person Company:

OPC is a newly emerged entity, just some years ago. One Person Company is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder. If a One Person Company crosses Rs.2 crores of turnover, it must be changed as Private Limited.

F. Public Limited Company: 

Being a Public company, it allows the shars to be sold to general public. Minimum three directors required to form a Public Limited. Minimum number of members required is 7 and there is no maximum limit for members. further it has got all the advantages as that of Private Limited Company.

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A.Arivazhagan, Corporate Lawyer
Le Intelligensia Law Firm
http://www.leintelligensia.com/
Call: +91 9941993399