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Category: Service

Sole Proprietorship Registration
Sole Proprietorship Registration | Process | Documents Required
Sole Proprietorship Registration | Process | Documents Required

What is Sole Proprietorship

A Sole Proprietorship Registration is a type of enterprise in which a business is owned and managed by an individual. In a sole proprietorship business, there is no legal difference between the owner and the business. To put it in another way a sole proprietorship is not a legal entity, where an is responsible for clearing off the debts of the business. The sole proprietorship is a preferable and popular business form. It is simple and easy to form a nominal cost.

A sole proprietorship is a convenient and simplified way to commence a business in India. It is neither considered as a corporation nor a company where the business is owned by a single person who is the owner/director/shareholder of the proposed entity. Some common examples of proprietorship businesses are shops such as chemists, saloons, groceries, etc. An individual who wishes to sell his/her products or services can run their business as a sole proprietor and can enjoy the rights provided to a registered legal company. Most of the entrepreneurs find it as an ideal business entity and have registered their business under it.

The loss or profit of the company is considered as the loss or profit of the individual and the income of the company is considered as the income of the owner as per the Income Tax Act.

Options Available For Registration

Registering a sole proprietorship business is a digital process that can be accompanied by the help of an expert. However, a person interested in registering as a sole proprietorship requires fulfilling some basic requirements like opening a bank account in the name of the business entity, etc.

  • Registration through Udyog Aadhaar under Ministry of MSME
  • Registration under Shop and Establishment Act
  • Registration through GST Registration

SME Registration: Udyog Aadhaar Under Ministry Of MSME

Individual requires registering as an SME (small and medium enterprise) as per the provisions of the MSME Act. For it, you have to submit an online application. A Udyog Aadhaar is a unique identification number offered by the Ministry of MSME to business owners. Even a sole proprietor can apply for a udyog aadhaar along with all other entities such as company and partnership. However, it is not compulsory but is beneficial for the company, especially during the time of loan requirement at a low-interest rate. The government has launched various schemes for the improvisation of Sole Proprietorship Registration under the MSME act.

Shop And Establishment Registration

Individuals must have shop and establishment licenses as per the local laws. It is issued by the municipal parties based on the number of workers/ employees in the firm. Here, shop means any premises:

  • a place where goods are sold, either by wholesale, retail, or
  • a place from where services are offered to customers.

It includes an office, godown, a store-room, warehouse, or workplace, whether in similar premises or otherwise, which is used in connection with such business/trade.

It does not include a factory, a residential hotel, commercial establishment, restaurant, eating house, theater, or another place of public entertainment or amusement;

If you have a shop under the definition given above, then you can register your sole proprietorship business by making an application to the local Municipal Corporation of your city under the Shop and Establishment Act.

Registration Under GST

GST registration is mandatory to carry business activities in India. Even if you are doing online business, you would require a GST number. GST registration is another way to get your sole proprietorship business registered. If you are dealing in any kind of exchange of goods and services then you can apply for GST registration. It is a great method of getting an identity concerning your sole proprietorship. However, certain important considerations must be evaluated before opting for this method.

Every registered business has to compulsorily collect the tax from the customers & file the GST returns periodically. He doesn’t need to get registered & collect GST if a sole proprietor has a turnover of lesser than Rs. 40 Lakhs (subject to few exceptions)

  • PAN Card of the proprietor
  • Aadhar Card of the proprietor
  • Passport size photograph of the proprietor
  • Office proof
  • Bank Statement copy that contains the bank account number, IFSC code, and address

Trademark Registration

Trademark Registration is required in case you wish to trade your goods or services with a special name or brand. It is profitable where there is a threat of some misuse of the name or mark used in your business.

License/Certificates Required According To The Nature Of Business

  • Drug license
  • Regional Transport Office(RTO) permit
  • Mandi license
  • Labour license
  • FSSAI license registration -Food Safety and Standards Authority of India
  • Certificate issued by the Institute of Chartered Accountants of India, etc

An individual can select any of the below-given options for the registration:

Why should one choose a Sole Proprietorship Registration?

A Sole Proprietorship Registration is one of the best choices for entrepreneurs who wish to handle everything on their own. It is the most common form of business entity, where the small business owners generally start their businesses as Sole Proprietorship only. The benefit of a Sole Proprietorship Registration can be classified under two categories: those are 1) Entity type benefits 2) Registration benefits.

  • Fewer Compliances
  • Easy to start
  • Cost-Efficient
  • Absolute Control
  • Ease in opening the bank account in the name of the business
  • Separate Business Identity
  • Provides flexibility in carrying out business activities
  • Easy to start and close
  • Hassle-free business structures with very few compliances
  • Self- Accountability
  • Being your Boss
  • Decision-making power
  • Don’t have to share your income and profits with anyone
  • No disputes between the Members

Benefits of Sole Proprietorship

  • Simplest Form Of Business : We generally come across various shops in our local places carrying out small business operations. They are the Sole Proprietorships who do not involve any complexities & can easily behold by a single person.
  • Easy To Start : You must note that Sole Proprietorships do not need mandatory registrations under the eye of law. They only require licenses or registrations specific to the nature of a particular business. Therefore, any person can start his/her business very easily with a trading name of their own choice. Any trade name can be used until and unless it does not infringe with any brand name.
  • Require Lesser Investment : Sole Proprietorships’ business needs a minimal amount of investment to start at the initial phase. Therefore, it is a great opportunity for that entrepreneur who wishes to set up a business with low investments as no minimum capital is prescribed for starting a Proprietorship business.
  • No Sharing Of Earned Profits : The sole proprietor is the only person who manages and operates the whole business, which means that 100% of the profits belong to only him/her. It is profitable to note that no one else is entitled to a share in the profits earned.
  • Minimum Legal Compliances : It is important to note that the sole Proprietorships are not administered by any specific law; therefore the legal compliances are automatically minimal by their nature. They do not need to avail the Certificate of Incorporation or Registration Certificate from the concerned authority. Subsequently, the compliances depend upon licenses or registrations taken by a specific sole proprietorship. To make it simpler, sole proprietorship have to comply with the GST return filing if it registers itself under GST law, or any other related laws. Therefore, there is no such obligation of uploading the Annual report or other reports on the website of the Ministry of Corporate affairs.
  • Minimum Income Tax : In general, no separate tax is needed to be paid because the Sole Proprietorship involves only a Sole proprietor. Sole Proprietorship and the Sole proprietor are meant to be the same or the purpose of calculation of tax liability. The assets & liabilities of the Sole Proprietorship are the assets as well as the liabilities of the Sole Proprietor. By the Income Tax Act, the sole proprietor is needed to file his/her IT returns, showing the profits earned in the business in that IT return itself. It must be noted that the tax is calculated at income tax slab rates as applicable to an individual, therefore any separate return is not required for the Sole Proprietorship firm.
  • Information Remains In Private Hand : Unlike Limited Liability Partnerships, Companies, etc. where audit reports and financial statements are made public for the users via the MCA (Known as Ministry of Corporate Affairs) portal, the financial reports of Sole Proprietorships remain in private hands. Also, the list of all sole proprietorships is not easily available with the Government officials/websites.
  • Own Decision Making : It is important to note that there is no chance of a conflict of ideas or any sort of decisions since the Sole Proprietorship is managed & operated single-handedly. Sole Proprietors has the sole right to do whatsoever he/she thinks to do is correct for the business.
  • No Requirement For Audit : Sole Proprietorship is not obligatory to get its accounts audited in every financial year under the eye of law. However, the audit will depend upon the nature of the business & the threshold turnover limits that have been specified for the conduct of the audit for that particular firm.

Documents Required for Registration

  • Aadhar Of The Proprietor : The proprietor of the proposed firm has to submit a scanned copy of his/her aadhar card. Aadhar card is required to register any business in India. A person cannot file an Income-tax return unless his/her PAN card is linked with an aadhar card. In case you don’t have an aadhar card or its information does not match with a PAN card, get it corrected before the submission.
  • PAN Card Of The Proprietor : In addition to the Aadhar card, a PAN card is also a mandatory document for a proprietorship business registration. PAN card is issued by the Income-tax department t of India which contains a unique PAN card number. All the details of the prerequisite documents should match with the details of the PAN card.
  • Current Bank Account Details : If the proprietor owns a PAN and Aadhar card, then he is liable to open a bank account in the name of his company. In addition to these documents, he would require identity and address proof. Documents regarding GST registration are also required to open a current bank account.
  • Office Proof : A proprietor can carry out his business activities at any owned or rented place. He has to provide proof of his registered office, documents worked as proof are: In case of owned property: any utility bill such as electricity bill, gas bill, water bill, etc. along with the NOC. The bill should not be older than two months in case of Rented property: lease/ rent agreement along with the NOC from the landlord. Additionally, few registrations given as follows are required for the registration purpose of the proposed firm:

SME Registration: Individual requires registering as an SME (small and medium enterprise) as per the provisions of the MSME Act. For it, you have to submit an online application. However, it is not compulsory but is beneficial for the company, especially during the time of loan requirement at a low-interest rate. The government has launched various schemes for the improvisation of SMEs registered under the MSME act.

Shop And Establishment Registration: Individuals must have a shop and establishment license as per the local laws. It is issued by the municipal parties based on the number of workers/ employees in the firm.

Registration Under GST: GST registration is mandatory to carry business activities in India. Even if you are doing online business, you would require a GST number. GST registration can be done in 5 working days with the following documents:

  •  PAN Card of the proprietor
  •  Aadhar Card of the proprietor
  • Passport size photograph of the proprietor
  •  Office proof
  •  Bank Statement copy that contains the bank account number, IFSC code, and address

Post Compliances :

  • One has to file annual Income Tax returns on time.
  • One has to file his GST in case they have GST registration
  • If liable for TAX audits, the individual should deduct TDS (tax deducted at source) from employees income and file TDS returns

FAQ- Frequently Asked Question

Who can start a Sole Proprietorship?

Any Indian citizen with a current account in the name of his/her business can start a sole proprietorship. Registration may or may not be required, depending on the type of business that is planned to be established. However, to open a current account, banks typically require a Shops & Establishments Registration.

How long does it take to establish a business with Sole Proprietorship?

A Sole Proprietorship business does not take more than 15 days to set up and start functioning. This simplicity makes it popular among small traders and merchants. It’s also much cheaper, of course. This is the other reason why it’s the most widely used business structure.

What businesses are commonly run as Sole Proprietorships?

Most local businesses are run as sole proprietorships, from grocery stores to fast-food vendors, and even small traders and manufacturers. That is not to say that larger businesses cannot operate as sole proprietorships, they can! Jewelry shops are sole proprietors, but it is not recommended.

Aside from a current account, is there no need for any other registration?

This depends on the business you’re in. It is compulsory for any business whose turnover in a financial year exceeds Rs 20 lakhs (Rs 10 lakhs in the case of North-Eastern states) to get a GST registration. For businesses that are involved in selling goods or services to customers out of a commercial establishment, it is mandatory to register under the Shops and Establishments Act.

Is it cheaper to run an LLP than a private limited company?

Yes, it is much cheaper to run an LLP than a private limited company. Mostly because compliances, such as an audit, apply to LLPs only after their turnover is sizeable. Most LLPs spend about half as much as private limited companies, in their first year on registrations and compliance work.

What if I wish to convert from Sole Proprietorship to Private Limited Company or Partnership?

The procedure involved is a little tedious, but it is possible. It is very common for sole proprietors to convert into partnerships or private limited companies at a later stage of their businesses.

To get started with Sole Proprietorship, reach out to Chartered Accountants on CA in Delhi‘s homepage

Partnership Firm Registration
Partnership Firm Registration | Documents Required | Fees
Partnership Firm Registration | Documents Required | Fees

Overview

A Partnership Firm Registration enables a well-recognized business structure formed with the mutual consent of all the partners for a profitable purpose. The firm is managed, owned, and controlled by a set of people that are known as partners and have some shared capital in the firm. A partnership firm is done under the Partnership Act, 1932 with very little documentation and formalities.

Partnership firms are distinguished as registered and non-registered firms. It is not mandatory to register but it is advisable to do so. The firm offers various benefits that do not apply to non-registered ones.

Basic Clarification

An association of two or more people who have decided to indulge in business activities is regarded as a partnership firm. The motive of such an organization is to earn profit. Members of such a partnership firm are called partners. All the partners share the profits and losses in the proportion of their respective owners.

In a partnership firm, the amount of money contributed is often huge because each partner can contribute to the total amount of capital required. The decision-making process in a partnership firm is a collective business. Every partner should be on the same path before taking any decision. Without firm registration, two partners cannot start their business venture.

Things to Consider While Naming the Partnership firm

As long as you satisfy the below-mentioned terms & conditions, any name can be given to a partnership firm. The conditions are given below:-

  • The name shouldn’t be too identical or similar to an existing firm operating the same business actions,
  • The name shouldn’t contain words like a crown, empress, emperor, empire, or any other words which show approval or sanction of the government.

Benefits of Partnership Firm

  • Easiest Business Structure : Partnership firms are one of the easiest business structures that can be started by formulating a partnership deed for which is necessary. Hence it can be started when the partners are ready and with minimum documentation, whereas other firms require at least 10-15 days covering up all the formalities like obtaining DSC, DPIN name approval, etc.
  • Ease In Decision Making : It’s easier and faster to decide on a firm registration as you don’t have to follow regulations to pass a resolution. A partner can perform transactions on behalf of the firm without any consent of other designated partners.
  • Raising funds : Incompetence to other firms such as proprietorship firms, funds can be easily raised in a partnership firm. Multiple partners are capable of making a more feasible contribution. It must be noted that banks consider a partnership firm more favorable for sanctioning credits and loans.
  • Easy Management Without Any Disputes : All the partners are assigned works and responsibilities as per their capability, as mentioned in the partnership deed. Partnership deed helps in avoiding any type of conflicts between the partners.
  • Ability To File Case Against Third Parties : The designated partners of the registered Partnership Firm can file a case against Third Parties to resolve disputes that have been aroused during business operation or any other case relating to the Partnership Firm in India. You must also note that any unregistered Partnership firm loses the right to file the case against a third party to resolve any disputes till the procedure of Partnership Deed Registration has been completed.
  • Can File Suit Against Co-Partners : It is evident in the contemporary world that the Court of Law best resolves the resolution of any dispute as no one knows when the dispute between the Partners may arise in terms of the sharing of profits or any other case relating to the operations of the Partnership Firm. In continuation to the above said, the Partners of an unregistered Partnership Firm cannot enforce any clauses of registered Partnership Deed.
  • Ability To Claim Set-Off : After availing of the Firm Registration, the partners enjoy the right power to claim set-off. If there is any claim against a third Party, Partnership Firm can claim the set-off when any third party files a suit against the registered Partnership Firm. This particular power of claim set-off is not available when the Partnership Firm is unregistered under the Act, Indian Partnership Act, 1932.
  • Enjoys Higher Credibility : A Partnership Firm that has completed the procedure of Online Registration of Partnership Firm enjoys higher credibility in comparison to an unregistered Partnership Firm. Even though, both registered and unregistered Partnership Firms are legally valid under the given Act Indian Partnership Act, 1932, the Registered Firm is highly referred in continuation by authorities over unregistered ones.
  • Easy Conversion Of Entity : The conversion of the registered Partnership Firm into any other establishment such as a Private Company or Limited Liability Partnership, which are broadly known as the corporate structure, can be easily accomplished.

Documents Required for Partnership Firm

Partners need to submit the documents when they are registering the partnership firm, such as partnership deed, PAN Card of Firm, Address Proof of Partners, Office Address Proof, GST Registration, Current Bank Account along with an affidavit certifying all the details mentioned in documents and deed correctly.

  • Partnership Deed : A partnership deed is a kind of agreement formed within the partners which defines their rules, duties, methodology, functions, and shares. It helps to avoid future conflicts and disputes between the partners. It is created and signed by all the members on the Judicial Stamp Paper that costs around Rs. 2000/-
  • PAN Card Of Partners : All the designated partners of the firm are required to submit their PAN cards as proof of their identity.
  • PAN Card Of Firm : Designated Partners of the Firm need to apply for PAN card of the firm. They have to file Form 49A to apply for a PAN of the firm. They should visit –  https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html In case of the authorized partner signs the application using a DSC, it can be filed in the online mode also. Besides, the application along with the requisite documents must be sent to the nearest PAN processing centers accessible across the country.
  • Address Proof Of Partners : All the partners have to submit a copy of their address proof which can either be their aadhar card, voter id, ration card, driving license, etc. The address and details given in the document should match PAN card details.
  • Office Address Proof : Address proof of the respective working place has to be submitted. In the case of rented property, an applicant has to submit a rent agreement along with a utility bill such as electricity, water, gas bill, property tax bill, etc. Apart from it he/she has to submit the No Objection Certificate (NOC) from the landlord. If the place is owned by any partner or partners then the applicant has to submit a utility bill along with a NOC.
  • GST Registration : firm needs to submit PAN card number, address proof of the firm, and identity & address proofs of the partner to obtain GST registration. The authorized signatory will sign the application either using DSC or E-Aadhar verification.
  • Current Bank Account : The firm needs to submit the following documents for opening a current bank account, which is as follows:-

1. Partnership deed

2. PAN Card of the Firm

3. Address Proof of the firm

4. Identity proofs of all the Designated Partners

5. Partnership registration certificate (in the case registered)

6. Any kind of registration document issued by the Government (GST Certificate will be Valid)

7. Copy of electricity bill, water bill, or telephone bill (not more than 3 months old)

8. Authorization letter on the letterhead of the Partnership firm authorizing a partner being the authorized signatory for the Current bank account

FAQ- Frequently Asked Question

What is a partnership firm?

A partnership firm is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a partnership deed that may or may not be registered.

Is a partnership firm a separate entity?

The partners in a partnership firm are the owners and thus are not separate entities 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.

How much time does it take to register a partnership firm?

The registration of a partnership firm in India can take up to 10 to 12 working days. However, the time taken to issue a certificate of incorporation may vary as per the regulations of the concerned state. The registration of a partnership firm is subject to government processing time which varies for each state.

What are the minimum and the maximum number of partners required for the formation of partnership firms in India?

Minimum of 2 persons and maximum of 20 is required for the formation of a partnership firm.

Who can be the partners in a partnership firm?

The individuals who are residing in India can only become partners or members of a partnership firm. Foreign individuals who want to form their business in India can choose private limited companies.

What is the capital amount needed for the partnership firm registration in India?

There is no minimum capital requirement for the registration of a partnership firm in India.

Are there any grounds on which my partnership can be invalid?

Often, if the partnership agreement is not registered, the court may deem a partnership invalid. If the object of the business is illegal, the court may consider the partnership invalid and dissolve the partnership.

What is the scope of liability when it comes to partnerships?

Every partner is jointly and severally accountable for any acts/activities of the firm committed throughout the course of business while he or she is a partner. This means that if a third party is injured or a penalty is imposed during the course of business, all partners will be held accountable, even if one of the partners caused the injury or loss.

If you want to get started with Partnership Registration, reach out to Chartered Accountants from CA in Delhi‘s homepage

Registration Of Section 8 Company
Registration of Section 8 Company | Process | Documents Required
Registration of Section 8 Company | Process | Documents Required

What is Registration of Section 8 Company

Registration of Section 8 Company under the Companies Act, 2013 as a Non-profit organization. As we all know NPO can be registered as Trust by executing a Trust deed or, As a society under the Registrar of Societies, or, As a non-profit company under Section 8 Company of the Companies Act, 2013.

Registration of Section 8 Company is the most popular form of Non-profit organization that is established for the-

  • Promotion of commerce,
  • Art,
  • Science,
  • Sports,
  • Education,
  • Research,
  • Social welfare,
  • Religion,
  • Charity,
  • Protection of environment or any such other related object”.

In layman, a Section 8 company must promote public welfare and the income generated by the company can only be used to support the stated public cause(s) only.

What are the Consequences in case of Non-Compliance is done by Section 8 Companies?

Every Section 8 company needs to follow the compliance levied by Income tax authorities and Registrar of Companies. If the company fails to satisfy the requisite compliance, it can cause heavy penalties up to Rs 1 lakh in a year.

What if the Company gets Registered under Section 80G?

If a Registration of section 8 company under section 80G then the individual or entity donating to the Non-profit company will get a deduction of 50% from their taxable income.

As per the Finance, Act 2020, the amendment was made i.e. With effect from first June 2020, All the existing charitable and religious institutions (including NGOs) which are registered or approved under the following sections-

1. Section 12A

2. Section 12AA

3. Section 10(23C)

4. Section 80G

These are compulsorily required to switch to section 12AB for fresh registration to continue availing exemption under section 10 or 11.

What Annual Compliances are required to be made for Section 8 Companies as per the Companies Act 2013?

Section 8 companies are required to comply with the Annual Docility as per the Companies Act 2013-

  • Two board meetings in a year
  • Preservation of Books of accounts
  • Compulsory audit.
  • Income tax return filing.
  • Filing AOC-4 and MGT-7
  • Registering for 12AB.
  • Adoption of financial statement.

Benefits of Section 8 Company

Numerous benefits are provided to Section 8 Company. Few are mentioned below:-

  • No Minimum Capital : In the Registration of section 8 company , there are no minimum capital criteria.
  • Avail Tax Benefits : Various tax exemptions and compensations are provided to the company as well as to the donors who are contributing to Section 8 Company.
  • Exempted From Payment Of Stamp Duty : No stamp duty is required on the Section 8 Company registration as the company is exempted from the payment of stamp duty applicable for registration.
  • Separate Legal Identity : Section 8 Company has a separate legal entity as private/public company and has a distinct legal personality from its member.
  • Credibility : Section 8 Company has more credibility as compared to any other form of a charitable organization.
  • Transfer Of Ownership : Members of Section 8 Company members can easily transfer the ownership of the company.

What are the Checklists to be Considered while Registering a Section 8 Company ?

Following factors are to be considered while registering Section 8 Company :-

  • The Company may be registered as a company limited by shares or by Guarantee and not with unlimited liabilities.
  • It can be a holding company of another company and can promote another company.
  • The company cannot be amalgamated with a company that is not a Section 8 company.
  • There must be at least 1 meeting within every six-calendar month.
  • Non-applicability of Section 149(1), Section 178 of Companies Act, 2013
  • Secretarial Standards are not applicable.
  • No proxy by the members.

What are the Documents Required for Registration of Section 8 Companies?

Below-mentioned documents are required for Registration of Section 8 Company :-

  • The Articles of Association
  • Memorandum of Association
  • Declaration by the subscribers and by the directors
  • A confirmation for the address of the office
  • Two months utility bills copy
  • Certificate of incorporation of the Outer Country body corporate [If applicable]
  • A resolution passed by the global Company [If applicable]
  • A recommendation declared by the promotional Company [If applicable]
  • The interest of the directors from other entities [If applicable]
  • Nominee’s assent
  • Identity proof and residential address of the subscribers and the nominees
  • Identity proof and residential address of Applicants
  • The Declaration/Resolution of the unregistered companies
  • DSC (Digital Signature Certificate)
  • Any other document [If required]

Get started with Section 8 company by reaching out to Chartered Accountants on CA in Delhi‘s homepage

One Person Company Registration
One Person Company Registration | OPC Registration | Documents
One Person Company Registration | OPC Registration | Documents

What is One Person Company Registration

A One-Person Company Registration is that has only one person as a member. OPC Registration was introduced to encourage individuals who are capable of starting their own business. OPC enables a sole proprietor to convert his firm into a Limited Liability company and avail the benefits of a Company. It is a business structure that enjoys the benefits of both forms of business i.e. a Sole proprietorship and a company. Thus, it eliminates the hassles of finding the right kind of co-partner/s for starting a business as a registered entity.

As Per Section 2(62) of the Companies Act, 2013, One Person Company means a company that has only one person as a member. One Person Company is bringing the unstructured Proprietorship Business into the structured version of a private company. OPC is opening the path for sole proprietors and Start-Ups.

Benefits of One-Person Company Registration

  • One Person Can Start The Business : Under OPC, one person can start the business with very little compliance. Due to fewer compliances, a person gets more time to focus on his business and key areas.
  • Complete Control By The Individual : The control remains in the hand of one person only.
  • Limited Liability : In case of One Person Company, the member of OPC has limited liability.
  • Separate Legal Entity From Its Member : Being a company, OPC has a separate legal existence from its member.
  • Easy Compliance And Tax Flexibility : An individual has to follow easy compliance and avails the benefit of tax availability too.
  • Benefits For Small Scale Industries : OPC avails the benefits provided to Small scale industries like easy funding, less compliance, loans at a lower interest rate, etc.

What are the Eligibility Criteria for One-Person Company Registration?

  • A natural person can form OPC who is a resident of India in the preceding calendar year.
  • Only 1 member can form an OPC.
  • The Name should be unique and should not be similar to any other existing company and trademark.
  • An individual cannot incorporate more than 1 OPC or
  • An individual cannot be the nominee of more than 1 OPC.
  • There must be a least 1 director.
  • In the case of OPC, the threshold limit of paid-up capital is Rs 50 lakh and the Average Annual turnover is Rs 2crore in the immediately preceding financial year. However, as per latest budget now there is no restriction on paid up and turnover limit.
  • One Person Company must include in its name (OPC) Private Limited.
  • Pre-condition to indicate the name of the other individual as a nominee. As in the event of the death of the subscriber, a nominee becomes a member of the One Person Company.

What Documents are Required for OPC Registration?

Below-mentioned documents are required for OPC Registration:-

For DSC Application

  • Passport size photo of the applicant.
  • Copy of Id and Address Proof.
  • Email Id and Phone number
  • Specimen Signature

Documents Required For SPICe+ Form

  • Identity proof
  • Address proof & Identity proof and of the nominee and the subscriber

Note-For Residential proof, the applicant can provide any of the following documents:-

  • Copy of Current Bank Account Statement, Phone Bill, or Electricity Bill)
  • Copy of Rent agreement and No-objection Certificate from the property owner.
  • If the property is owned-Copy of the sale deed.
  • Memorandum of Association and Articles of Association
  • Declaration by the Subscribers and Directors
  • Proof of Office Address
  • Copy of Electricity or Utility Bills. However, it should not be older than 2 months.
  • Nominee’s Consent in Form INC-3
  • Disclosure of Director’s Interest and any other document (if required).

FAQ- Frequently Asked Question

Who can register for an OPC?

OPC company registration can be done only by Indian residents, and that too only one at a time, as per the specifications of the Ministry of Corporate Affairs.

What are the mandatory requirements of an OPC?

All such businesses must maintain books of accounts, comply with statutory audit requirements and submit income tax returns and annual filings with the RoC.

How much capital is required to start an OPC?

There is no difference in capital requirement between an OPC and a private limited company. It needs an authorized capital of ₹1 lakh, to begin with, but none of this actually needs to be paid up. This means that you don’t really need to invest any money into the business.

What are the tax advantages available to an OPC?

No general advantages; though some industry-specific advantages are available. Tax is to be paid at a flat rate of 30% on profits, Dividend distribution tax applies, as does minimum alternate tax.

How much does it cost to run an OPC?

The cost of an OPC is only marginally lower than that of a private limited company. You’ll be shelling out around ₹12,000 to incorporate, then paying around ₹15,000 a year in compliance fees and an auditor to inspect your books.

How many directors can there be in an OPC?

An OPC has certain limitations. The person starting the business is its only director and shareholder. There is also a nominee director, but this person has no power whatsoever for raising equity funds or offering employee stock options. The nominee exists only to take over in case of the death or incapacitation of the director. The nominee is chosen by the director and can be anyone, such as your spouse, parents, or siblings. The nominee will need to provide identity proof during registration.

Can I start more than one OPC at a time?

No, an individual can form only one OPC at a time. This rule applies to the nominee in an OPC, too.

If you want to get started with OPC Registration, reach out to Chartered Accountants from CA in Delhi‘s homepage

LLP Registration
LLP Registration- Documents Required
LLP Registration- Documents Required

What is LLP Registration

LLP Registration is a type of partnership firm which is mostly preferred by the entrepreneur. It is the easiest form of business structure with the benefit of limited liability. LLP registration gives freedom to partners to form a partnership structure where the liability of each partner is limited to the amount they contribute to the business. Limited liability partnership firm registration means that if the partnership fails, creditors cannot ask for the partner’s personal property or income.

What is a Limited Liability Partnership Firm?

LLP Registration is a type of business structure that offers extra benefits in comparison to the partnership firm. It provides limited liability to its partners at very nominal compliance costs. Moreover, the Partners of the firm can organize their internal structure like a partnership firm.

In short, LLP is a separate legal entity from its member that has the power to extend all its assets keeping the liabilities of partners limited. Hence, an LLP Registration In Delhi is a hybrid of a company and a partnership firm.

Benefits of LLP Registration

  • Enjoys The Status Of Corporate Bodies : As per Section 3 of the Limited Liability Partnership Act, 2008, under LLP registration a firm is a corporate body that has come into force with effect from April 1, 2009. The Indian Partnership Act 1932 does not apply to LLP.
  • Perpetual Succession : A Limited Liability Partnership firm has the benefit of perpetual succession and can continue its existence even after the retirement, death, insanity of one or more respective partners in the firm.
  • Shares Limited Liability : The most important feature of LLP is limited liability that all its partners should entertain which means their assets are safe and won’t be used to pay the losses or debt of the firm. Apart from it, innocent partners of a Limited Liability Partnership firm are not liable to pay for the wrong deeds done by some other partner.
  • Fewer Credentials Are Required : A person can start an LLP firm with just two partners out of which one should be an Indian resident. The designated partners of a limited liability partnership firm can either be an individual or a corporate body. Moreover, there is no specific capital requirement to incorporate a limited liability partnership firm registration.
  • Quicker Decision Making Process : An agreement is printed on stamp paper and signed by all the partners that define their roles and duties in the firm. It helps them in the decision-making process.

Easy Online Registration And E-Filling

MCA has simplified LLP registration and made it an easy online procedure. The forms and the documents are filed electronically on the official MCA portal. A designated partner of a limited liability partnership firm has to obtain DSC to sign these documents and forms.

  • Easy Conversion : If a public or private company or a partnership firm decides to emerge as a limited liability partnership, they can easily convert as per the provisions of the applicable act.
  • Efficient Business Management : The business is managed by the respective partners as per their roles and duties. The designated partners of the firm are responsible for the legal compliances.
  • Profit-Sharing Business : Profit is equally shared amongst all the partners of a limited liability partnership firm. An LLP registration cannot be incorporated for a charitable purpose. Its purpose is to carry on business activities to earn profit.

Documents Required for LLP Registration

Here is a list of documents required for registration :

Documents Of Partners :

  • ID Proof/PAN Card of the Partners
  • Residential Proof of the partners
  • Copies of Passport size Photograph
  • Passport (in case of Foreign Nationals/ NRIs)

Documents Of LLP :

  • Copies of the Proof of Registered Office
  • DSC-Digital Signature Certificate

Documents of Partners

  • ID Proof/PAN Card/ Of Partners : All the partners of the firm are needed to provide their PAN card at the time of registering Limited Liability Partnership.
  • Residential Proof Of Partners : Partner must submit anyone out of Passport, Driver’s license, Voter’s ID, or Aadhar Card. Moreover, the name & other details as per address proof & PAN card must be the same.
  • Photograph : Partners should also provide their passport size photograph, preferably on white background.
  • Passport (In Case Of NRIs/Foreign Nationals) : Foreign nationals & NRIs have to submit their passport mandatorily for becoming a partner in Indian Limited Liability Partnership. Passport has to be duly notarized by the concerned authorities in the country of such foreign nationals & NRI, in addition, the Indian Embassy placed in that country can also authorize the documents. They have to submit proof of address also which will be a bank statement, driving license, residence card/any government-issued identity proof including the address.

Documents of LLP Registration

  • Proof Of Registered Office Address : Proof of registered office must be submitted during the LLP registration within 30 days of its incorporation. If the designated registered office is taken on rent, in that case, the rent agreement and a NOC- no objection certificate from the landlord must be submitted.

No objection certificate will act as the consent of the landlord to give permit the LLP to use the place as a ‘registered office’ and operate its business.

In addition, anyone document out of utility bills like electricity, gas, or telephone bill must be submitted along with the application. Those bills must contain the complete address of the located premise and owner’s name & the document shouldn’t be older than the past 2 months.

  • Digital Signature Certificate : One of the designated partners of the LLP needs to opt for a DSC (digital signature certificate) as all documents & applications will be digitally signed by the concerned signatory.

FAQ- Frequently Asked Question

What is the eligibility of designated partners/partners in an LLP?

Any individual, or even a company or an LLP, can become a partner. However, only an individual can become a ‘designated partner’ in an LLP.

I am an NRI. Can I start an LLP business in India?

Yes, non-resident Indians and foreign nationals who are willing to enter into an LLP partnership can do so, provided they submit the necessary documents after getting them notarized by the concerned authorities. Although, at least one of the designated partners in an LLP should be an Indian national.

What is an LLP agreement?

An LLP agreement is made between the partners and the LLP regarding the relationship between the individual partners in the LLP. An LLP agreement usually consists of management policies, the inclusion of new partners, policy-making strategies, and so on.

What is the minimum number of partners required to start LLP?

According to the LLP Act, a minimum of two designated partners are required to start an LLP. The designated partners are responsible for fulfilling all the essential requirements involved in starting and running an LLP.

What kind of start-ups commonly register LLPs?

Typically, only start-ups that will not be looking for venture capital funding register LLPs. This is because venture capitalists only invest in private and public limited companies.

Is it cheaper to run an LLP than a private limited company?

Yes, it is much cheaper to run an LLP than a private limited company, particularly in your early startup days. This is because many compliances, such as an audit, apply to LLPs only after their turnover is sizable. Most LLPs spend about half as much as a private limited company in their first year on registrations and compliance work.

If you want to get started with LLP Registration, reach out to Chartered Accountants from CA in Delhi‘s homepage

Private Limited Company Registration process
Private Limited Company Registration | Process | Documents Required
Private Limited Company Registration | Process | Documents Required

What is Private Limited Company

A Private Limited Company Registration is a privately maintained small business existence, which is one of the highly recommended means to start a business in India. The Companies Act 2013 governs Pvt. Ltd. company registration in India. While, minimum of 2 shareholders are required to start a private company, the higher limit of members is 200 as per the Companies Act, 2013. If a private limited company faces financial risk, its shareholders are not subject to sell their personal assets, i.e. they ought to have limited liability.

For online company registration, there must be a least of 2 directors while a maximum of 15 directors can be appointed in a company. The proposed director must have attained the age of 18 years. A foreign national can also become a director of a private limited company in India. There is no minimum paid-up capital required for a Pvt. Ltd. company registration. Every private limited company must use “Pvt.Ltd.” after their name.

A private limited company has never-ending existence, Pvt. limited company holds on existing even in the case of death or bankruptcy of its Members. A private limited company does not have any relationship with the public; they aren’t permitted to ask for any collateral from the public or public sectors. In a private limited company, people are not entitled to transfer shares, which protects takeovers of private limited companies from big enterprises.

Benefits of Private Limited Company Registration

  • EASE OF FORMATION: A Private Limited Company can be formed by two persons only, by complying with the prescribed formalities of the Companies Act. With Spice forms, this is the fastest way to register a company
  • SEPARATE LEGAL ENTITY: The biggest advantage of a Private Limited Company is that its identity is distinct from that of its members. A company is a separate person having its own rights & Obligations.
  • PERPETUAL SUCCESSION: In case of the death of the owner or transfer of shares, your business won’t get affected and There will be no effect on the firm’s continuance.
  • LIMITED LIABILITY: The greatest benefit of a Private Limited 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. Stakeholders are not liable for corporate debts and liabilities
  • GREATER FLEXIBILITY: A Private Limited Company is required to perform lesser legal formalities as compared to a Public Limited Company. It enjoys special exemptions and privileges under the company law. Therefore, in a Private Limited Company, less compliance is required.
  • SECRECY: A Private Limited 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.
  • INVESTMENT: Flexibility to raise investments or loans from NRIs and Foreigners. Easy to raise investments and corporate loans
  • TRANSPARENCY: Private Limited Company enjoys enhanced transparency thus able to win the trust of the general public.
  • MINIMUM COMPLIANCE: Private Limited Company Registration enjoys enhanced transparency thus able to win the trust of the general public.

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.

For more information, or to get started, reach out to Chartered Accountants from CA in Delhi‘s homepage

Know more about Documents required for private limited company

Greenwolf Advisors
Greenwolf Advisors Pvt Ltd : Finance Services
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 :

  1. Company Registration
  1. Private Limited Company Registration
  2. Limited Liability Partnership
  3. One Person Company
  4. Section 8 Company
  5. Partnership Firm
  6. Sole Proprietorship
  7. Limited Company
  8. Company in USA 
Section 80G
Know about deductions under Section 80G
Know about deductions under Section 80G

Section 80G: Deduction for donations towards Social Causes

The various donations specified in Section 80G are eligible for deduction up to either 100% or 50% with or without restriction as provided in Section 80G. Section 80G deduction not applicable in case donation is done in form of cash for the amount over Rs 10,000.

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