Every Private Limited Company is required to cope up with the legal regulations that are imposed by the government to maintain proper data & functionality of companies in The Indian Economy.
Proprietor always hassle to take risk as the creditors has right to recover their money from his property Private Limited is a concrete form of business which gives the confidence to the directors of the company to take risk, as Companies Act 2013 contains a Limited Liability clause.
Registrar of Companies has officially revealed that there are 2,50,000 companies which are on the verge of getting snapped for undermining the beneficial provisions of the Companies Act,2013. # The Old Procedure: Get Over It!
With new blood giving, defined outline to their dreams by initiating start-ups with a unique name along with a defining trademark, reflecting an eye popping logo of the company.
The government is trying their best to make the Incorporation of a Company more transparent and easy, in the spree to promote start-up culture in India.
Company Incorporation Rules 2014[1] contains the procedure to handle all the legal activity of the company, for example, it contains rules for incorporation process, to alter anything in a company, Manage the Company, etc.
Any separate legal entity incorporated in India in the form of any of the following: Section 8 Company Society Private Limited Company Public Limited Company Limited Liability Partnership Also, such an applicant should be recognized as a Start-up in consonance with the G.S.R. notification 180(E), i.e. definition of a ‘Start-up’.
Penalty for Post-incorporation Compliance Compliance Minimum Penalty Maximum Penalty Filing of LLP Agreement Rs.100 per day No limit Letterhead Rs.2000 Rs.25000 Regular Compliances Maintaining financial affairs and account This is a fundamental thing to be done where at first the books of accounts are to be maintained each year on cash or accrual basis.
Comparison between traditional partnership and LLP (Limited Liability Partnership) Particulars Partnership LLP Prevailing Law Partnership is prevailed by ‘The Indian Partnership Act, 1932’ LLP (Limited Liability Partnership) are prevailed by ‘The Limited Liability Partnership Act, 2008’ Registration Registration of Partnership is optional; it may or may not be registered.
Public Company According to the Companies Act 2013, a public company is a company which is not a private company and has a minimum paid up capital of Rs.500000 or higher as prescribed in the agreement; meaning, the company which is not managed by a group of private individuals.
Every LLP under the Limited Liability Partnership Act, 2008 need to file Annual Returns and Statement of Accounts for every financial year, irrespective of whether LLP has doing any business or not.
The Companies Act, 2013 has introduced One Person Company (OPC) model by providing an opportunity to enter into a corporate world with a single person as member and having the privileges of a private company.
But for availing the exemption, LLP needs to file its accounts with the ROC (Registrar of Companies) which contain a statement of account and solvency by the partners to acknowledge the partners’ responsibilities for complying with all the requirements.
Designated Partner in an LLP A Designated Partner is a partner, Who has a Director Identification Number He can be an individual as well as a nominee of a body corporate In an LLP there has to be a minimum of 2 designated partners At least one of the designated partner should be a resident of India A designated partner has the same liability as that of other partners in an LLP.
Application required A detailed application for Striking of the LLP A copy of the detailed application is required to be made in eform 24 to the ROC (Registrar of Companies) stating the full details of LLP and reason for closing the LLP.
The applicant should qualify to be a startup and shall be incorporated as any of the following: (a) Society (b) Section 8 Company (c) Private Limited Company (d) Public Limited Company (e) Limited Liability Partnership Moreover, they need to fulfil four parameters, which are: (a) Number of Years of establishment: At least 2 years or a Sanction Letter (b) Number of incubates enrolled or graduated: Minimum 20 or 5 in case of Sanction Letter (c) Infrastructure: Minimum of 5000 sq.