LLP Registration:

• LLP, in simple terms, is an alternative corporate business form that gives the benefits of Limited Liability Company and the flexibility of a partnership firm. Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. Compared to other forms of business LLP is simple.
• Renowned and accepted form of business worldwide in comparison to company.

LLP is one of the easiest entity formations of business to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLP is preferred by Professionals, Micro, Small and medium businesses that are family or friends owned or closely-held. LLP can be converted into Limited Company and vice versa.

Requirements:

• Minimum 2 Designated Partners (DP)
• Atleast 1 of the DP shall be Indian resident
• If a body corporate is DP then it has to nominate a natural person
• Director Identification No.(DIN) has to be obtained by 2 partners
• Digital Signature Certificate of any one of the DP
• There is no upper limit for number of partners in LLP unlike an ordinary partnership firm where the maximum number of partners cannot exceed 100 nor like private limited company wherein cannot exceed 200.

Features of LLP:

 

• Liability of the partner is limited to his agreed contribution. 
• Low cost of formation.
• Easy to establish manage and run.
• No partner is liable on account of the independent or un-authorized acts of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful acts or misconduct.
• Every Partner, for the purpose of business of LLP, is the agent of LLP but not of other partner.
• Partners are liable personally to the extent of guarantees provided by them.
• Separate Legal Entity, Perpetual Succession & continuity
• Borrow/ Invest on its own name
• Initiate legal proceedings on its own name
• Simplified compliances & no mandatory requirement of statutory audit for certain LLP’s
• Rights and duties of partners governed by the agreement subject to act
• LLP’s will be taxed @ 30%.

KFintech is the market leader in LLP registration services in India. In addition to LLP registration, KFintech also offers a variety of business registration services like private limited company registration, one person company registration.

Documents Required

Following are the documents / information required

1. Self-Attested PAN Copy for Indian nationals and Notarised Passport copy for foreign nationals of each Partner.

2. Photographs of each Designated Partner.

3. Self-Attested copy of any one of the Identity Proofs of each Proposed Partner viz.

• Driving License
• Passport
• Voter ID
• Aadhaar Card.

4. Self-Attested copy of any one of the Address Proofs of each Proposed Partner viz.

• Bank Pass Book
• Bank Statement
• Telephone Bill
• Mobile Bill
• Electricity Bill

5. Address proof of the Registered Office of the LLP, which can be any of the following not older than two months viz.

• Electricity Bill
• Gas Bill Telephone
• Mobile Bill

6. Proof of Registered Office, any one of the following viz.

• a. Conveyance
• b. Lease Deed
• c. Rent Agreement along with the rent receipts.

7. No Objection from Owner of the registered office of the LLP if the registered office a premise is not taken on lease.

Registration of OPC:

“One Person Company” means a Company which has only one Person as a Member. With the implementation of the Companies Act, 2013, an individual person can now constitute a Company under the concept of “One Person Company”.

The Companies Act, 2013 opens a new segment for organizing a business in India by providing the concept of OPC which is a legitimate way to incorporate a company with only one member. OPC is similar to the existing concept of Sole-proprietorship with separate legal entity distinct from its proprietors and promoters. OPC can run and undertake its business like Sole-proprietorship with the status of Company. This new concept of business will provide a whole new bracket of opportunities for those who look forward to start their own ventures with a structure of organized business. 

OPC is a separate legal entity from its members, offers limited liability protection to its shareholder, has continuity of business and is easy to incorporate. However unlike a Company or a Proprietorship, an OPC is required to nominate one person to take charge in case of death or disability of the sole member. OPC also have to comply with many of the statutory requirements similar to that of a Company; but are also exempt from a few procedural formalities, like conducting Annual General Meetings and Extraordinary General Meetings.

Requirements:

• Only a Natural person who is an Indian citizen and Resident in India shall be eligible to incorporate a One Person Company.
• Indian resident means having stayed in India for a time period of not less than 182 days over the immediately preceding one calendar year.
• A Nominee for OPC has to be a natural person that’s an Indian citizen and resident in India.

Benefits:

• Uninterrupted Existence

OPC is a separate legal entity and capable of doing everything that an entrepreneur would do.

• Easy Funding

            It is a private company; OPC can raise funds through venture capital, financial institutions, angel investors, etc. An OPC can raise funds thus graduating itself to a private limited company.

• More opportunities, Limited liability

            One of the advantages of One Person Company is that it has more opportunities, limited liability since the liability of the OPC is limited to the extent of the value of the share you hold, the individual could take more risk in business without affecting or suffering the loss of personal assets. It is the encouragement to new, young and innovative start-ups.

• Benefits of being a Small Scale Industries (SSI)

            An OPC can avail the various benefits provided to Small Scale Industries like the lower rate of Interest on loans, easy funding from the bank without depositing any security to a certain limit, manifold benefits under Foreign Trade policy and others. All these benefits can be boon to any business in initial years.

•  Single Owner

            You, only the owner helpful in quick decision-making, controlling and managing the business without following any elongated processes and methodologies as adopted in other companies. The sense of belonging inspires to grow the business further.

• Benefits under Income Tax Law

            Any remuneration paid to the director will be allowed as deduction as per income tax law, unlike proprietorship. Other benefits of presumptive taxation are also available subject to Income tax act.

• Receive interest on any late Payment

            OPC avails all the benefits under Enterprises Development Act, 2006. The newly start-up OPC is micro, small, or medium; hence they are covered under this act. As per the Act, if buyer or receiver receives any late payment (receives payment after a specified period), then he is entitled to receive interest which is three times the bank rate.

Documents Required

Following are the documents / information required

1. Self-Attested PAN Copy of the Shareholder and Nominee of the Shareholder (Both must be Indian Nationals).

2. Photographs of proposed Shareholder and / or Director and Nominee.

3. Self-Attested copy of any one of the Identity Proofs of a Proposed Shareholder and / or proposed Director and Nominee of the Shareholder viz.

• Driving License
• Passport
• Voter ID
• Aadhaar Card.

4. Self-Attested copy of any one of the Address Proofs a Proposed Shareholder and / or proposed Director and Nominee of the Shareholder viz.

• Bank Pass Book
• Bank Statement
• Telephone Bill
• Mobile Bill
• Electricity Bill

5. Address proof of the Registered Office of the Company, which can be any of the following not older than two months i.e.,

• Electricity Bill /
• Gas Bill Telephone /
• Mobile Bill

6. Proof of Registered Office (Any one of the following)

• Conveyance
• Lease Deed
• Rent Agreement along with the rent receipts.

7. No Objection from Owner of the registered office of the OPC if the registered office a premise is not taken on lease.

COMPANY REGISTRATION

A private limited company is a type of privately held small business entity. This type of business entity limits owner liability to their shares, limits the number of shareholders to 200, and restricts shareholders from publicly trading shares.

Private Limited Company is the most popular form of business entity in India. Private limited company registration is governed by the Companies Act, 2013.

Unique features of a private limited company like limited liability protection to shareholders, ability to raise equity funds, separate legal entity status and perpetual existence make it the most recommended type of business entity for millions of small and medium sized businesses that are family owned or professionally managed.

KFintech is the market leader for services relating to company registration in India. KFintech can help you register a private limited company, one person company. The average time taken to complete company formation is about 1 - 7 working days, subject to government processing time and client document submission.

 

REQUIREMENTS

1. Minimum of 2 Shareholders and 2 Directors are required for a Private Limited Company registration, where directors and shareholders can be same.
2. Maximum limit on number of shareholder prescribed in Private Limited Company is 200.
3. Maximum number of Director in a private limited structure can be raised to 15 without any special resolution.
4. A natural person can be both a director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.

BENEFITS OF PRIVATE LIMITED COMPANY REGISTRATION

1. Private Limited Company Registration is comparatively fast (1 - 7 working days).
2. it’s easy to fetch funding in a private limited company by transferring of shares. Limited liability protection to shareholders.
3. A private limited company is easy to convert in a Public Limited company or Limited Liability Partnership at any stage subject to fulfilment of eligibility criteria.
4. Maintenance of Basic Compliances after registration of private limited company is comparatively simple.
5. There exists no Bar on Turnover and Capital in a private limited company structure unlike in One Person Company (OPC).
6. Separate legal entity status and perpetual existence make it the most recommended type of business entity.

COMPLIANCES

Apart from the event based compliances under the various Laws, Financial statements must be approved by the shareholders in Annual General Meeting with in six months from the date of fiscal year ends and in case of first year with in nine months from the end of the fiscal year. The first accounting period begins the same day that the company is incorporated.

Documents Required

Following are the documents / information required

1. Self-Attested PAN Card Copy for Indian nationals and Notarised Passport copy for foreign nationals.

2. Photographs of each proposed Director

3. Self-Attested copy of any one of the Identity Proofs of each Proposed Director / Shareholders i.e.,

• Driving License
• Passport
• Voter ID
• Aadhaar Card

4. Self-Attested copy of any one of the Address Proofs of each Proposed Director / Shareholder .i.e.,

• Bank Pass Book
• Bank Statement
• Telephone Bill,
• Mobile Bill,
• Electricity Bill

5. Address proof of the Registered Office of the Company, which can be any of the following not older than two months i.e.

• Electricity Bill
• Gas Bill Telephone
• Mobile Bill

6. Proof of Registered Office (Any one of the following)

• Conveyance
• Lease Deed
• Rent Agreement along with the rent receipts) etc.,

7. No Objection from Owner of the registered office of the company if the registered office premises is not taken on lease.

Registration of Public Company:

As Company which is not a private company is called a public company. Also, a private company which is Subsidiary of a Public company shall also be deemed to be Public Company.

A Public Company must have at least seven shareholders and minimum three directors. There is no defined limit on the maximum number of members the company can have. Also, there is no restriction on the transferability of the shares. The company can invite the public for the subscription of shares or debentures.

Minimum Requirements to form a Public Limited Company:

1. Minimum 7 Subscribers who agrees to take shares of the Company subscribed against their name in the Subscription Clause of Memorandum. Although, there is no limit on the maximum number of Members (Share-holders).

2. Minimum 3 directors, the number of which can be raised up to 15 without any special resolution.

A natural person can be both a director and shareholder, while a corporate legal entity can only be a shareholder.

Foreign nationals and NRIs can be Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.

Benefits:

• Better access to capital : as there is no restriction on invitation to public for subscribing its shares, share capital can easily be raised from existing and new investors;
• Listing on Stock Exchanges : Only Public Companies can get their shares listed on a Stock exchange, providing them easy and large investments.
• Reducing the risk factor: As public offer spreads the ownership of the Company among large shareholders, transparency increases and therefore risk of fraud is reduced.
• Growth and Expansion Opportunities: keeping in mind the transferability, transparency and being in a position to raise funds more easily, there are wide number of growth opportunities available to Public Companies as compared to other Entities.
• Liquidity : shareholders can buy and sell their shares in share-market (if they are quoted on a stock exchange);
• Value of shares : the value of the firm is shown by the market capitalisation (based on the share price);
• It gives a company a more prestigious profile.

Other finance opportunities

As well as share capital, a public limited company will often find itself in a better position when looking at other potential sources of finance.

The demands of being a public limited company and maintaining a stock exchange listing, for example, can help to improve a company's creditworthiness when issuing corporate debt (and therefore reduces the return the company needs to offer investors).

Compliances

Apart from the event based compliances under the various Laws, Financial statements must be approved by the shareholders in Annual General Meeting organised within six months from the date of end of financial year in case of existing Companies and in case of first year (newly incorporated Company)within nine months from the end of the financial year.

Documents Required

Following are the documents / information required

1. Self-Attested PAN Card Copy for Indian nationals and Notarised Passport copy for foreign nationals.

2. Photographs of each proposed Director

3. Self-Attested copy of any one of the Identity Proofs of each Proposed Director / Shareholders i.e.,

• Driving License
• Passport
• Voter ID
• Aadhaar Card

4. Self-Attested copy of any one of the Address Proofs of each Proposed Director / Shareholder .i.e.,

• Bank Pass Book
• Bank Statement
• Telephone Bill,
• Mobile Bill,
• Electricity Bill

5. Address proof of the Registered Office of the Company, which can be any of the following not older than two months i.e.

• Electricity Bill
• Gas Bill Telephone
• Mobile Bill

6. Proof of Registered Office (Any one of the following)

• Conveyance
• Lease Deed
• Rent Agreement along with the rent receipts) etc.,

7. No Objection from Owner of the registered office of the company if the registered office a premise is not taken on lease.