DECIDE YOUR BUSINESS FORMAT
BUSINESS REGISTRATION SERIVCES
We can help you decide on which business format is suitable for your needs. We can help you know entire process of not only registering it but also closing it, if at all it is needed.
Below table gives major points of differences among different entities.
Registration of Proprietary Firm:
A proprietary firm is the most used format for business registration in India. The reason is obvious as it is most simple form to register, with minimum legal compliance and costs. There are advantages to it, like flexibility, lower statutory compliance, reduced tax burden. At the same time it has disadvantages like unlimited liability.
REQUIREMENTS FOR SHOP ACT REGISTRATION:
You can send soft copies / scan copies OR handover physical copies of following
Copy of Aadhar card of proprietor.
Copy of Pan Card of proprietor.
Passport Size photo of proprietor.
For address proof of business - If property is owned by proprietor: Index II / Tax Payment challan of property.
If property is rented by proprietor: Copy of rent agreement.
NOC from owner of property (in attached format)
Latest Electricity bill (not older than 2 months)
One mobile clicked photograph of the proprietor - standing at the entrance of the business premises, with entrance and name board visible in the photo. Name board can be simply printed on A4 size paper – it should also have name in Marathi. In photo 3 should be visible – the proprietor, the name board, the entrance gate.
Number of employees.
Weekly off day (holiday).
Signature of proprietor (scan)
Mobile Number & Email id of proprietor (this will be submitted to receive OTPs)
Registration of Partnership Firm:
A Partnership firm can be registered with minimum two partners. Partners can be Individuals, HUFs or any other legal person. There is no mandatory requirement of minimum capital contribution. This is an ideal option for these seeking to collaborate, come together, and work together. The golden rule is draft the exit route first!
Registration of LLP:
A Limited Liability Partnership is the corporate form of traditional partnership firm. It has corporate existence and at the same time lesser regulatory compliance as compared to a private limited company. It comes with advantage of Recognition. Your business card with "LLP" name is sure will impress the prospect!
Registration of a Private Limited Company:
This is the time tested and hence the most preferred format when it comes to corporate form of business. It also offer flexibility of adding or removing shareholders. This feature is used to infuse investment against equity share. If you are seeking to add more people as you grow, and those too with different rights and responsibilities this is the way to go. You can have catchy brand name registered to market. Parties you deal with you definitely have a better perception about your organization.
Registration of Section 8 company:
Earlier known as section 25 company, this is the not for profit format of company. Section 8 company is recognized across India and can undertake its activities anywhere in the country. It comes with tax benefits if you register under Section 12A of the Income Tax Act 1961. The donors to your organization may get benefit if you are registered under 80G of the Income Tax Act 1961. And then there is FCRA registration available if you seek foreign donations, contributions. Host of charitable activities can be carried out from donations, grants or CSR funds (Corporate Social Responsibility funds mandatory to be donated by specific types of companies.)
Besides Section 8 company other formats of charitable organization are a Society and a Trust. A comparative analysis between these three categories is summarised below:
Registration of One Person Company (OPC):
This is the new model introduced by companies Act 2013. Unlike private limited company, where minimum two members are required to form a private limited company, an OPC can be formed by one person.So you do not need to rely on another person to form a corporate. But under this model you can make turnover of Rs.2 crore only. Then you must convert this company to a Private Limited Company.