18
Jul

Registration of Business or LLP Registration

The Types of Company Formation

In India, the formation of a company can be done through company registration process in India, depending on the infrastructure, and type of your business. Hence, it’s essential to pick the right business niche and structure to conquer your goal.

The Different Types of Company Registrations

Consider these below different registration avenues for your company in India and the process, depending on your company formation need:

Limited Liability Partnership (LLP)– Most fit for construction, family-owned or trading businesses. In this raising funds is difficult, and liability is also limited on partners.

Private Limited Company – This is best for business people thinking to raise funds for fast-moving companies like ecommerce, IT, manufacturing etc. Raising funds is easy, and liability on shareholder is also limited.

One person company- Only one founder, demanded. Can’t raise reserves. It is stringent to get converted into Private Limited. This is not a recommended structure for anyone. Founders have limited liability.

Partnership Firm – Partners have extensive liability. Suggested only for short-run projects.

Proprietorship Firm – One of the simplest structures. If you want to experiment, then it is the best. There, you can’t have partners.

Non-Government Organisation (NGO) – They are non-profit organizations. No return on investment is concerned.

Public Limited company – Large companies.

Trust – Best for educational institutes.

Private Limited Company

Who can own it?

For foreign company registration in India, Private Limited company is perfect for businesses planning to borrow funds and have fast-growing companies. It is best for ecommerce, IT & other services.

Minimum requirements

Minimum of 2 Directors & shareholders are needed. You can register your company in India with the capital of minimum Rs 10.

Time is taken

It takes seven days for Private ltd foreign company registration in India.

Post compliances

After the formation of the company, the following agreements are to be done although there is no transaction:

1) Statutory audit

2) Tax Returns

3) Secretarial compliances

The estimated cost of compliances

The cost of Agreements for the Pvt. ltd. is higher than any other structures. It begins from about INR 15,000/annum and can rise depending on the transactions.

Tax rate

After the company registration process in India, the profit of Pvt ltd. Companies are taxed at flat 25%.

Closure compliances

The procedure for closing the company is long and expensive. It takes about 1 year for a company to close the venture.

Limited Liability Partnership (LLP)

Who can own it?

LLP (Limited Liability Partnership) is perfect for a family-run business, trading companies and construction companies. Fund-raising is a bit difficult in LLP.

Minimum requirements

Minimum of 2 preferred partners are needed. The minimum capital investment is not defined.

Time taken

It takes 10 days for LLP to get registered.

Post compliances

After the formation of LLP, the following compliances are to be performed, although there are no transactions:

1) Tax Returns

2) Statutory audit ( if turnover exceeds INR 4000,000)

3) Secretarial compliances – Form 8 and Form 11

The estimated cost of Compliances

It is less expensive than Private limited. It begins from INR 7,000/year and can rise depending on the transactions.

Tax rate

30% of the tax rate is applied to LLP profits.

Closure compliances

It is less complex than private limited. The time is a minimum of 1 year.

Can foreign companies be Director & shareholder in a Private Limited Company and LLP company?

Yes, international companies can be a Director and shareholder in the Pvt. ltd & LLP company. The only requirement is to have one Indian resident Director.

DBPL can help foreign companies, business houses and entrepreneurs with all the procedures involve in doing the foreign company registration in India. Connect with us to know more.