Moneymji : India’s Own Financial Expert
Address : Office No 13, Cottage 36, West Patel Nagar, New Delhi 110008 || Contact :+91 9911492897|| Email : [email protected] || Website : www.moneymji.com
How to Start A Partnership Firm : Full Guide
This post will guide you on how to start a partnership firm but before that let us know what exactly is a partnership firm. A Partnership is a business structure in which two or more individuals manage and operate a business in accordance with the terms and goals set out in the Partnership Deed. Partnership registration is relatively easy and is prevalent among small and medium-sized businesses in the unorganized sectors.
Why should I set up a partnership firm?
- Relatively Cheaper than Company and LLP
- Minimal Compliances
- Easy to establish
- Audit not required
Is a partnership firm a separate entity?
The partners in a partnership firm are the owners, and thus, are not a separate entity from the firm. Any legal issues or debt incurred by the firm is the responsibility of its owners, the partners.
How many partners can there be?
A partnership must have at least two partners. A partnership firm in the banking business can have up to 10 partners, while those engaged in any other business can have 20 partners. These partners can divide profits and losses equally or unequally.
Is partnership firm registration necessary?
No, partnership registration is not necessary. However, it is advisable for you to have a partnership firm registration online. Also, remember that for a partner to sue another partner or the firm itself, the partnership should be registered. Moreover, for the partnership to bring any suit to court, the firm should be registered. For this reason, it is recommended that larger businesses register the partnership deed.
What are the main aspects of a partnership deed?
The deed should contain names of the partners and their addresses, the partnership name, the date of commencement of operation of the firm, any capital invested by each partner, the type of partnership and profit-sharing matrix, rules and regulations to be followed for intake of partners or removal.
Documents Required for Partnership Registration
- Form No. 1 (Application for registration under Partnership Act)
- Original copy of Partnership Deed, signed by all partners
- Affidavit declaring intention to become partner
- Rental or lease agreement of the property/campus on which the business is set
Hope you got to know how to start a partnership firm, If you want to know which form of business will be best suitable for you, click here to read WHAT SHOULD I FORM: LLP, PVT LTD OR A ONE PERSON COMPANY?
Connect to a Chartered Accountant to get started with the process
Section 8 Company Registration | Society Registration | NGO Registration | Trust Registration
Section 8 Company Registration
Philanthropy is not about money, it’s about feeling the pain of others and caring enough about their needs to help. If you are in for a generous cause, we would definitely support you in the best possible way. This post will guide you everything about Section 8 Company Registration
The idea of incorporating a non-profit-making company in India is not a new term as it has been in the business community for ages. In the Companies Act 2013, it is mentioned in section 8 and this is why it is popularly known as the Section 8 Company. The primary objective of incorporating such a company is to encourage science, sports, art, education, research, social welfare, religion, and environmental protection, etc. where profit doesn’t play any vital role.
As far as its structure is concerned, it is much like a trust or society as it is registered under the Central Government’s Ministry of Corporate Affairs. A Section 8 Company enjoys many privileges and exemptions under Company Law.
A Non-profit Organization is a company that has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any such other object;
Intends to apply its profits, if any, or other income in promoting its objects; and
Intends to prohibit the payment of any dividend to its members
We make it easy for you to incorporate a Section 8 company by providing all necessary legal and professional support in respect to incorporation and business management. We have a special discount for those working for the welfare of society.
What are the Advantages of Section 8 Company?
Ease of Formation
A Section 8 company can be formed by two persons only, by complying with the prescribed formalities of the Companies Act. Many privileges and exemptions under Company Law. A registered partnership firm can be a member in its own capacity.
Limited Liability
The greatest benefit of Section 8 Company is limited liability. If any liability arises then its member is not personally affected; members are only liable for unpaid shares held by them and not more than that. Being the biggest advantage with this type of company, it means that the owners are not personally responsible for business debts and obligations of the incorporation.
Separate Legal Entity
This is the most prominent quality of a Section 8 Company. It refers to the statement that the company and its members are completely distinctive. The biggest advantage of a section 8 company is that its identity is distinct from that of its members. A company is a separate person having its own rights & Obligations.
Greater Flexibility
A Section 8 company is required to perform lesser legal formalities as compared to a public company. It enjoys special exemptions and privileges under the company law.
Perpetual Succession
Death, insolvency and insanity, etc of any of the members does not affect the continuity of the company. Thus the life of the company does not depend upon the life of its members. In case of the death of the owner or transfer of shares, your business won’t get affected. There will be no effect on the firm’s continuance.
What are the Tax Benefits of Section 8 Company?
A Section 8 company is not required to publish its accounts or file several documents. Therefore, it is in a better position than a public company to maintain business secrets.
How long does it take to form Section 8 Company?
A Section 8 company can be formed within 10 days, and if documents are ready, just a week is enough.
What is the process for Section 8 Company Registration
- Apply DSC and DIN of directors
- Apply Company Name
- Prepare project report for next 3 years
- Obtain license
- Preparation of MOA, AOA, and other incorporation documents
- Submission of Forms
- Tadaaa..!! Certification of Incorporation is ready..! You are ready to serve society.
Reach out to top-rated Chartered Accountants of Delhi, as listed below to initiate the process
Start A One Person Company | OPC Registration Online | India
Help,I am in a dilemma. What dilemma? I heard a quote “If you want to go far, go together, if you want to go fast, go alone.” Yeah, true. But how can I go alone, when a private limited company wants minimum 2 directors, partnership and LLP want minimum 2 directors, and sole proprietorship does not give me many privileges? I want to fly, I want to be a One-Man Army! No worries, One Person Company (OPC) is made for you.
One Person Company is a business entity in which there is only one owner with limited liabilities who can act both as a shareholder as well as the director. The concept of OPC is basically to eradicate the limitation of a sole proprietorship, which is the most popular form for small businesses in India. The liability of owner is limited to the invested capital in this form.
If you independently want to commence your business without involving any other person, then One Person Company (OPC) is the ideal choice for you.
When OPC concept was not introduced in India, people used to choose Proprietorship as their form of business. Proprietorship has many disadvantages like
- One cannot take investments
- No legal existence
- Unlimited liabilities
Moreover, many other as well. Further proprietorship as a kind of business is not considered trustworthy in India anymore. One Person Company (OPC) is a solution for all the above problems.
One Person Company has following features and restrictions:
- It allows a significant degree of separation between operations and ownership.
- Less compliance is needed as compared to a private limited company.
- It is useful for small entrepreneur to directly access target market.
- Banking and financial institutions prefer to lend money to the company instead of proprietary firms.
- It makes decision-making process much faster because of single ownership.
- the owner can anytime convert OPC to a private limited company with ease.
WHY ONE PERSON COMPANY?
LIMITED LIABILITY
The liability of the shareholder is limited and personal assets are safe. The liability of the shareholder will only be limited to the unpaid subscription money in his name. OPC is a separate entity and there will be a true distinction between the promoter and the company.
SINGLE OWNER
There is only one owner who can act both as a shareholder as well as the director.
COMPLETE CONTROL
This leads to fast decision making and execution. Yet he/she can appoint as many as 15 directors in the OPC for administrative functions, without giving any share to them.
LEGAL STATUS & SOCIAL RECOGNITION
One Person Company is a Private Limited Structure in the eyes of law, which gives suppliers and customers a sense of confidence in business.
SEPARATE LEGAL ENTITY
The biggest advantage of a one person company is that its identity is distinct from that of its sole owner. If a promoter were to operate as a Sole Proprietorship, the business would come to an end on his/her death but since an OPC is a separate legal entity,therefore, ownership would pass on to the nominee and an OPC continue to exist.
EASY COMPLIANCE
OPC is one of the easiest forms of corporate entities to manage. Very few ROC filing is to be filed with the Registrar of Companies (ROC). No need to conduct Annual General Meeting (AGM),so lesser compliance cost.
Time Period
Within a week, and if documents are ready, just 3-5 days are enough.
MOVING STEP BY STEP
Apply DSC and DIN of directors
Apply Company Name
Preparation of MOA, AOA, and other incorporation documents
Submission of Forms
Tadaaa..!! Certification of Incorporation is readyyy..!
Start Limited Liability Partnership
Overview To Start Limited Liability Partnership
Let me go for a company. Umm…. but it’s difficult to keep up with its compliance requirements, the cost is also high, and I don’t even need to give shares to anyone. Let me go for Start Limited Liability Company. Less compliance, less cost, liability.Oh no! I don’t want an unlimited liability. I should rather go and Start a Limited Liability Partnership because: –
- Limited Liability Partnerships, LLP is a unique and new form of business that combines the advantages of both ‘Company’ and ‘Partnership’ in a single business entity.
- LLP is a superior form to the partnership. The partnership is often discouraged to use because of its unlimited liability feature, i.e. your personal assets may also be held up in case all the dues are not cleared. Hence, it is very risky to use this form of business. So, to overcome this problem, a most important feature of limited liability of the company is added to the partnership, which results in a Limited Liability Partnership.
- LLP is a separate entity, which can be formed in India by a minimum of two persons coming together with a motive of earning profit. Unlike a Private Limited Company, an LLP is easy to manage. It is subjected to minimal post-registration compliances.
If a startup is not keen on raising funds and wants less stress on the compliance filing part, then they can opt for an LLP type of partnership.
A Start Limited Liability Company in India has the following features:
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Description to Start Limited Liability Partnership
LLP is a unique and new form of business that combines the advantages of both ‘Company’ and ‘Partnership’ in a single business entity. This business form was introduced in India in the Year 2008 with the approval of the Limited Liability Partnership Act, 2008.
LLP is a superior form to the partnership. The partnership is often discouraged to use because of its unlimited liability feature, i.e. your personal assets may also be held up in case all the dues are not cleared. Hence, it is very risky to use this form of business. So, to overcome this problem, a most important feature of limited liability of the company is added to the partnership, which results in a Limited Liability Partnership.
LLP is a separate entity, which can be formed in India by a minimum of two persons coming together with a motive of earning profit. Unlike a Private Limited Company, an LLP is easy to manage. It is subjected to minimal post-registration compliances.
Some of the demerits of an LLP are, one doesn’t have the option of generating equity in an LLP which decreases the chances of raising funds from the investors in case of a startup, as investors are mostly expected to take up some percentage of the profit shares from the company.
Although, if a startup is not keen on raising funds and wants less stress on the compliance filing part, then they can opt for an LLP type of partnership.
An LLP in India has the following features:
The liability of Partners in LLP is limited to their capital contribution.
Less compliance is needed as compared to a Public Company.
Flexibility in business operation because partners can decide how they will individually contribute to the business operations.
Now, LLP can access foreign equity funds under the automatic route. No RBI approval is required.
No tax is levied on the distribution of profits amongst the partners.
No restrictions on a maximum number of partners.
Why Start Limited Liability Partnership?
EASY TO FORM:
It is very easy to form LLP, as the process is very simple as compared to Companies and does not involve much formality. Compared to other forms of starting a business, LLP has been found as the easiest form of incorporating a company and requires fewer hassles.
BODY CORPORATE:
Just like a Company, LLP is also a body corporate, which means it has its own existence as compared to a partnership. LLP and its Partners are a distinct entity in the eyes of the law. An LLP is known by its own name and not by the name of its partners.
LIMITED LIABILITY:
An LLP exists as a separate legal entity from its partners. Liability for repayment of debts and lawsuits incurred by the LLP lies on it and not on Partners. Forming an LLP is a good way to protect your personal assets from your company’s liabilities.
EASY TRANSFERABLE OWNERSHIP:
It is easy to become a Partner or leave an LLP or otherwise, it is easier to transfer the ownership in accordance with the terms of the LLP Agreement. It is relatively easy to transfer the ownership of an LLP to another person as compared to other business forms.
NO AUDIT REQUIREMENT:
Under LLP, only in the case of business, where the annual turnover/contribution exceeds Rs 40 Lacs /Rs 25 Lacs are required to get their account audited annually by a chartered accountant. This provides great relief to small businessmen.
COMPLIANCE:
Compared to a Private Limited Company, A Limited Liability Partnership tends to have less compliance to follow.
CAPITAL REQUIREMENT:
There is no minimum capital required to form an LLP.
TAX ADVANTAGES:
There are some important advantages over the private limited company. For example, Dividend Distribution Tax and tax surcharge don’t apply. Loans to partners are also not taxable as income
GREATER FLEXIBILITY:
Limited liability partnerships offer partners flexibility in business ownership. Partners have the authority to decide how they will individually contribute to business operations.
Time Period :
For certificate of incorporation, if documents are complete, consider 14 working days, and for the entire process including Form 3 & 4, just 7 more days.
Moving Step By Step to Start Limited Liability Partnership
- Apply DSC and DIN of directors
- Apply Company Name
- Submission of Forms
- Tadaaa..!! Certification of Incorporation is ready..!
- All done, Just Form 3 & 4 to be filed within 3 months
Start A Private Limited Company In Delhi / Bangalore / Mumbai – Anywhere in India
Start A Private Limited Company In Delhi / Bangalore / Mumbai – Anywhere in India
If you want to Start A Private Limited Company in Delhi, Pune, Bangalore, or anywhere in India, then this article will guide everything you need to know to kick off. A Private Limited Company can be incorporated by following the provisions and regulations stated under the Company’s Act 2013. It enjoys greater stability, legal identity, it is flexible and a greater combination of capital. This is supported by the diversified and different abilities of capital accumulation. The private company can be easily identified by just looking at the name, the number of members it incorporates the management, directors, etc. The number of directors who are to incorporate must be mentioned in the 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 are differentiated in Company’s Act.
Minimum Directors Required to Start Private Limited Company:
The minimum number of persons required for the incorporation is 2. Whereas the maximum limit of the number of persons is 50.
How Much Time Does It Take To Start Pvt. Ltd. Company:
It usually takes 15-20 days to register a Private Limited Company through INC 29 (A single application for Reservation of Name, Incorporation of Company, and Allotment of DIN), subject to ROC processing time. Venture-Care makes Private Limited Company Registration easy for you.
Click here to know about Compliance for a private limited company
Minimum Requirements To Start Pvt. Ltd. Company:
- A minimum of two members is required.
- The minimum capital required to start the private limited is Rs. 100,000
- DIN of two members.
- Digital Signature for all directors
- Consent either from the subscriber or director
- Address proof of the registered address
- NOC which will be provided by the owner of the property or premises
- Minimum of Director must be resident of India
Procedure to Start a Private Limited Company:
Documents Required to Start a Pvt. Ltd. Company:
- Two colored photographs of all the members
- PAN card of all the associates
- Address proof of all
- If the premises is on rent or lease, the respective documents need to be provided
- Signature on DSC form
- Signature on Affidavit for the DIN
- Signature on the consent form
- Signature on subscriber sheet
Advantages of Pvt. Ltd. Company
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Separate Legal Entity
A company is a legal entity and a juristic person established under the Act. Therefore a company form of organization has wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts.
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Uninterrupted Existence
A company has ‘perpetual succession’, that is continued or uninterrupted existence 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.
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Borrowing Capacity
A company enjoys better avenues for borrowing funds. It can issue debentures, secured as well as unsecured, and can also accept deposits from the public, etc. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns
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Easy Transferability
Shares of a company limited by shares are transferable by a shareholder to any other person. Filing and signing a share transfer form and handing over the buyer of the shares along with a share certificate can easily transfer shares.
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Owning Property
A company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern.
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Limited Liability
Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorship and partnerships, in a limited liability company, the liability of the members in respect of the company’s debts is limited.
FAQ- Frequently Asked Question
What are the rules for picking a name for a private limited company?
The registrar of companies (RoC) across India expects applicants to follow a few naming guidelines. Some of them are subjective, which means that approval can depend on the opinion of the officer handling your application. However, the more closely you follow the rules listed below, the better your chances of approval. First, however, do ensure that your name is available.
How much time is needed for setting up a private limited company in India?
If you have all the documents in order, it will take no longer than 15 days. However, this is dependent on the workload of the registrar.
Do I need to be physically present during this process?
No, new company registration is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.
What documents are required to complete the process?
All directors must provide identity and address proof, as well as a copy of the PAN card (for Indian nationals) and passport (for foreign nationals). No-objection certificate must be submitted by the owner of the registered office premises.
Is it necessary to have a company’s books audited?
Yes, a private limited company must hire an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs of rupees and even lead to the blacklisting of directors.
What is the minimum capital needed to form a private limited company?
There is no minimum capital required for starting a private limited company.
Can the limited liability partnership (LLP) be converted to a private limited company?
No, one cannot convert an LLP into a private limited company as it is not an MCA. The LLP Act, 2008, and the Companies Act, 2013, both don’t have any provisions on the conversion of the LLP is a private limited company. However, if one wants to expand their business they can register a new private limited company with the same name. The LLP company needs to just issue a no-objection certificate.
Can one register a private limited company on their home address?
Yes, the company can be registered at the owner’s home address. A copy of the utility bill is required to be submitted.
Does one have to be present in person for the incorporation of a private limited company?
The entire procedure is done online and one does not have to be present at our office or any other place for the incorporation. A scanned copy of the documents has to be sent via mail. They get the company incorporation certificate from the MCA via courier at the business address.
Can NRIs/foreign nationals become directors in a private limited company?
Yes, an NRI or a foreign national can become a director of a private limited company. He or she must obtain a DIN from the Indian RoC. They can also hold a controlling stake in the company. As long as at least one director on the board of directors is an Indian resident.
Who can help me to Start Pvt. Ltd. Company
You can choose from a list of CA in Delhi from our homepage. They can help you start a Pvt. Ltd. company in Delhi, Pune, Bangalore, or anywhere in India without any hassle. All you need to do is make a phone call, sit back and relax.
Greenwolf Advisors Pvt Ltd : Finance Services
Greenwolf Advisors Contact Details:
Address : 208, Pearls Business Park, Netaji Subhash Place, New Delhi 110034 || Contact :+91 9711430728 || Email : [email protected] || Website : www.greenwolfadvisors.com.
Our partners at Greenwolf Advisors genuinely understand your requirements and with their tremendous experience, help you in not only taking care of compliance but also acting as a CFO partner of your business to drive growth and maximize the efficiency of the company’s finances. Our experts will help you make insights-driven strategic decisions through our tailored solutions to your unique requirements
We understand that our growth lies in our clients’ growth and we whole heartedly focus on satisfaction and growth of our clients.
We are committed to provide you the highest quality service wherein our dedication and sincerity can be felt by you in our work. Our philosophy lies in going an ‘extra mile’ and provide you value addition that is more than a part of our duty.
We understand that each business is driven by different aspirations, which is why we customise our advice, ideas and support for every client. Every bit of stress and paperwork we can take off your hands means more time for you to spend on running and expanding your business.
Greenwolf Advisors offer a wide range of financial services to individuals and business owners. By seeking our sound financial information, we believe you will be better able to identify your goals and make sound decisions, to help you reach these goals.
At Greenwolf Advisors, we also help Finance Functions leverage the power of analytics and deliver much more than accurate financial statements and reports. We help our clients deliver forward-looking, predictive insights that help shape the business strategy, controlling the strategy execution by taking ownership of the organizational data and improve day-to-day decision-making in real-time.
Services offered by Greenwolf Advisors :
Khubchandani & Co. Chartered Accountants
Address : C-113, back side of syndicate properties, West Patel Nagar, New Delhi 110008 || Contact :+91 9711430728 || Email : [email protected]