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2
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Incorporation
BENEFITS OF COMPANY REGISTRATION
Private Limited Company registration is the most popular legal structure option for businesses in India. A private limited company can have a minimum of two members and a maximum of fifty members. The directors of a private limited company have limited liability to creditors. In a case of default, banks/creditors can only sell company’s assets but not personal assets of directors. If you want to start a company in India then make sure your company is registered as Company Registration should be your first priority
Limited Liability Protection to Directors personal assets
Many times startups need to borrow money and take things on credit. In case of normal Partnerships, Partners personal savings and property would be at risk incase business is not able to repay its loans. In an LLP, only investment to start a business is lost, personal assets of the Partners are safe.
Better image and credibility in Market
Limited Liability Partnership (LLP) is a popular and well known business structure in the world. Corporate Customers, Vendors and Govt. Agencies prefer to deal with LLP instead of proprietorship or normal partnerships.
No Audit Requirement & Minimal Compliances
LLP is easy to manage and statutory audit is not required for Limited Liability Partnership. LLP is most ideal for small enterprises. Tax Audit is also not required for LLPs with capital less than Rs. 25 lac and turnover not exceeding Rs. 40 lac.
Continuity of Business
LLP continues to exist beyond the existence of its Partners. This is not possible in traditional partnership firms.
MINIMUM REQUIREMENTS FOR PVT. LTD. REGISTRATION
- Minimum 2 Partners
- DIN (Director Identification Number) for all the Designated Partners
- If a body corporate is a Partner, it has to nominate a natural person as its Nominee
- DSC (Digital Signature Certificate) for all the Designated Partners
- There is no concept of share capital, but each Partner has to contribute towards capital of LLP
- Address proof for office of LLP
WHAT ALL YOU GET
- DIN for 2 Partners
- LLP Agreement
- Bank A/C Opening Support
- Digital Signature for 1 Partner
- LLP PAN Card
- Incorporation Certificate
- Company TAN/TDS
- GST Registration
- MSME Registration
FACTORS TO CONSIDER IN COMPANY NAME SELECTION
The name of your company is very important. It is the first impression to your buyers, suppliers and stakeholders. It should, therefore, be relevant, suggestive and attractive. There are various factors that you should keep in mind while naming for your company.
Short & Simple: The name should be concise and not be too long. People should be able to pronounce it easily and they should be able to remember your company’s name the first time they hear or read it
Meaningful: The name of your company should be related to your business. It should fit the company’s branding. For example, Infosys refers to information systems or IT technologies
Unique: Name of your company should not be same or identical to an existing company or trademark. You can go to search.legalraasta.com to check if your company name is identical to others. You should ideally avoid plural version e.g., “Flipkart’s” or changing just letter Case, spacing or punctuation marks in an existing company name.
Suffix: The name of your company should end with the suffix “Private Ltd” in a case of a Private limited company and “LLP” is a case of a limited liability partnership.
Should not be illegal / offensive: The name of your company should not be against law. It should not be abusive or against the customs and beliefs of any religion.
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LET’S CLEAR ALL THE DOUBTS!
1. What details required to set up LLP in India?
You need to arrange very simple details of Partners like photograph, Pan card and one address proof. For more details, please fill the above details and Get Started Now.
2. Do I have to have office (commercial) space to start a LLP?
No, commercial office space is not required. You can show your own residential or rented home address as the registered office address of LLP. This office address can be changed at any time after incorporation of LLP. Once your startup is set up, stable and ready to move on to a nice corporate space you can change the registered office address by informing to the ROC office.
3. What is DIN? What is the importance of DIN in LLP Registration?
Director Identification Number (DIN) is a unique identification number required for a person to become Partner of LLP. DIN is issued by ROC office (Ministry of Corporate Affairs) It is similar to a PAN Card number.DIN is to be mentioned in documents while appointing a person as a Partner of an LLP.
4. What is DSC? Why is DSC important for LLP Registration?
A digital signature is electronic signature, which is in the form of codes. It is used for signing the electronic forms, filed with ROC for formation of LLP. Digital Signature cannot be used in physical documents.
5. What is LLP Agreement?
LLP Agreement is byelaws or rules based on which important matters like main business of the LLP, capital or meetings is decided. This is a standard legal document prepared by Company Secretaries during registration of LLP.