The term “Company” is typically used to describe a company in various ways. However, there are times when businesses struggle to determine which type of business is best for them.
It is essential to have a fundamental understanding of the classes and categories of companies under various subheads if you own a business or plan to start one.
The Companies Act of 2013 divides businesses into various types based on a number of factors, such as ownership, number of members, liability of members, and listing status, among other factors.
As a result, a company must be registered under a specific classification and named as such whenever it takes its first steps in industry-related trade and commerce.
Introduction to LLP
The Limited Liability Partnership Act of 2008 governs this type of business. The legal entity of a Limited Liability Partnership is distinct. It is a hybrid of a partnership firm and a company. It can have LLP registration in Coimbatore.
- Limited Liability Partnerships are good for professional businesses that don’t need to raise money through equity.
- Since 2008, LLPs have gained popularity due to the fact that they combine many of the advantages of a partnership firm and a private limited company. A portion of the fundamental elements of a LLP which can get LLP registration in Coimbatore are as per the following;
- An LLP is an extended form of a partnership firm with similar characteristics, with the following exceptions:
Separate Legal Entity–
An LLP which can have LLP registration in Coimbatore can sue anyone and can be sued in the name of the company itself, i.e., the LLP will have a separate individuality of its other than its Partners, in contrast to a Partnership firm;
Partners in a typical partnership firm hold unlimited liability against the legal consequences and collective debts. LLPs which had LLP registration in Coimbatore cannot generate or raise funds from the public.
- In a partnership firm, each partner is liable for the actions of another partner, whereas in an LLP, no other partner is liable for the actions of one partner other than himself.
- The constitution of an LLP is written in a document known as an “LLP Agreement.”
- When a firm gets registered as an LLP, the word “LLP” is mentioned at the end of the name of the entity.
- The LLP registration in Coimbatore is easier than the registration of a Partnership firm (under the Partnership Act, To enjoy the advantages of both a partnership and a private limited company, you should register your company as an LLP if you are starting or running a business that does not require equity funding.
- LLP that can get LLP registration in Coimbatore is generally preferred by investors looking to make investments over any other business structure. An LLP investment is ready for this. The DPIIT (previously DIPP).
- Scheme of Start-up India, administered by the Ministry of Commerce and Industry, can also be used to register an LLP. Advantage of the numerous benefits that the Indian government occasionally offers.
- Because an LLP which has LLP registration in Coimbatore is a legal entity, it is able to borrow money or capital in a variety of ways when it is needed.
- Some of them could be Private Getting/Private supporter/Financial speculator/Transient capital from Partners or their Family members and Obligations through Banks.
- LLPs, like all other types of legal entities, are essentially required to use double-entry accounting systems to keep accurate and complete books of accounts on an annual basis.
- Again, in strict accordance with the LLP Rules of 2009, every LLP that can get LLP registration in Coimbatore has a turnover of more than INR 40 lakhs per year or a partner contribution of more than INR 25 lakhs per year is required to have its accounts audited every financial year.
The following are the two most significant annual compliances that LLPs in India are required to perform: –
- Within sixty days of the end of each fiscal year, a properly authenticated Annual Return on Form-11 must be submitted to the Registrar along with the required fee.
- Within six months of the end of the relevant financial year, the designated partners must have signed the Statement of Account & Solvency on Form-8.
- It is important to note that the LLPs that has LLP registration in Coimbatore will be subject to a daily penalty of INR-100 if they delay submitting these two regulatory compliances after the aforementioned deadlines.
How stamp duty amount is decided for LLP Agreement?
In India, the amount of capital contributed is taken into account when determining the LLP Agreement’s stamp duty. State-by-state variations exist in the stamp duty rate. Depending on where the registered office is, the State Stamp Act will be used. Our package price includes the sum of 500.
In addition, neither the MCA nor the law mandate the Notary to be present on the Agreement. The incorporation of an LLP and which can get LLP registration in Coimbatore does not necessitate the use of a notary public; however, bank officials may require it.
In accordance with the Foreign Investments Promotion Board’s (FIPB) guidelines, LLP which can get LLP registration in Coimbatore accepts foreign direct investment (FDI) automatically.
However, LLPs will not allow investments from foreign institutional investors (Flls) or venture capital investors (FVCIs).
External Commercial Borrowings (ECB) will not be available to limited liability companies (LLPs).
Introduction to OPC
- A one-person company is one in which the owner serves as the company’s director, shareholder, promoter, and member. Section 2 (62) of the Companies Act of 2013 regulates this type of business.
- It has the characteristics of a Private Limited Company and is an expanded version of a Sole Proprietorship Firm. There is no necessity of a settled up capital in a One Individual Organization. In addition to its members, an OPC has its very own distinct entity. The following are some of an OPC’s fundamental characteristics:
- An OPC which had OPC registration in Chennai does not need to hold an Annual General Meeting (AGM), and due to such exemptions, the cost of compliance in this type of business is too low. It cannot raise funds from the general public through a prospectus or public issue.
- An OPC has a minimum of one director and a maximum of 15 directors to have OPC registration in Chennai. The perpetual succession of the company is very low because the company dissolves if the nominee is denied the right to become its member.
Process and timeline for OPC registration
- OPC Registration in Chennai relies heavily on documentation. As evidence of the company’s registered address, promoters must submit PAN, ID, and address proof, as well as utility bills—such as an electricity, water, or telephone bill—from the registered address and a NOC from the premises owner.
- For your convenience, we have provided a list of the necessary documents above. In the questionnaire, we will request the necessary information for OPC registration in Chennai.
Selection of name for OPC
- Every business should have a distinct name that does not violate any other business’s name or a trademark. For this purpose, we read rule 8 and conduct a thorough search of the name in accordance with section 4 of the Companies Act. after name selection, OPC registration in Chennai can be done.
- Please refer to our comprehensive discussion of the requirements for name approval for company registration.
DSC for all promoter of OPC
- According to the Information Technology Act, DSC is the same as a physical or paper signature. All OPC registration in Chennai applications must be submitted digitally and signed by the proposed director.
- The issuance of a digital signature for the company’s shareholder and director kicks off the OPC Registration filing process.
SPICE Form filing to ROC
- We must submit the formal application for the company’s incorporation to the ROC in form SPICE with the necessary documents attached following the OPC’s approval of the name. This is done for OPC registration in Chennai.
- The MOA, AOA of the company, KYC documents of the promoters, and proof of the registered address with a NOC from the landlord are the documents that need to be attached to the Spice Form.
- The application is then signed by the promoters using their DSC, which is then attested by a Chartered Accountant, Company Secretary, Cost Accountant, or High Court Advocate. The proposed company capital determines the government filing fee for company registration.
PAN &TAN Number for OPC
- Nowadays, the Company is automatically issued a Pan Number and TAN at the time of OPC registration in Chennai. There is no requirement to create additional applications.
- The PAN Number and TAN are printed on the certificate of incorporation itself, and an email-based E-Pan and Tan letter are sent after the company is registered.
Partnership firm registration
Apart from sole proprietorships and corporate structures, partnerships are an important type of business organization. We Earnlogic does the Partnership firm registration in Chennai at an affordable cost.
There are times when an entrepreneur alone would not be able to acquire the necessary capital and resources. In addition, the nature of business necessitates increased supervision and control, work division, and risk sharing.
However, unlike a business, there aren’t as many members willing to split profits and risk. In addition, the company’s size is insufficient to warrant incorporation as a corporation.
The entrepreneur can start a partnership-based business at this point. Therefore, let’s learn more about the partnership business structure and the procedures for partnership firm registration in Chennai.
- The formation of a partnership firm is based on an agreement between two or more partners who agree to take on the business. The Partnership Deed is the legal document that specifies the terms and conditions that apply to this kind of partnership.
2. Existence of a Business Activity
Only on the basis of the existence of a business activity can the partnership form of business activity be established. Any trade, industry, or profession can be included in the business. It can get Partnership firm registration in Chennai.
- Profit and Loss Sharing Between Partners have the right to share profits and, if any, losses incurred in the course of business.
Existence of an Agency Relationship
Partnership business can be conducted by all partners or by any partner acting on behalf of others . It can have Partnership firm registration in Chennai.
This indicates that each partner is an independent principal capable of acting. In addition, he can act as an agent on behalf of other partners.
Unlimited Partners’ Liability
Each Partner is personally liable for all business-related losses. That is, the partnership company’s outstanding debts can be paid for with their personal assets.
Each partner is qualified for partake in the everyday activities of the business. However, not all partners must participate in the business’s day-to-day operations. However, in order to make the necessary decisions, partners running the company must obtain the consent of other partners. It can have Partnership firm registration in Chennai.
Share Transfer Limitations
A partner cannot transfer his share to anyone else. However, he may do so with the permission of other partners.
- Registration is not required
The partnership form of entity is not required. On the other hand, the partners have the option of Partnership firm registration in Chennai with the Registrar of Firms.
The Partnership Firm’s Duration
The Partnership Firm that has Partnership firm registration in Chennai may continue for as long as the Partners Desire. But the law says that the partnership can end if one of the partners dies, retires, or goes bankrupt. However, after settling the outgoing partner’s due share, the remaining partners can continue operating under the same name.
Choosing Partnership firm Name
A partnership business entity’s partners are free to choose any name they want for their company. However, the following guidelines apply.
According to Indian Partnership Act, 1932, section 58(3):
The words listed below should not be used in the name of a partnership firm. These include the terms “Crown,” “Empress,” “Imperial,” “King,” “Queen,” and “Royal,” among others, which all denote approval or sanction from the government.
The name should not be too similar to any of the other names of businesses that do business in a similar way.
If the new company adopts a name that is similar to the existing one, the purpose of this rule is to prevent harming the existing company’s goodwill or reputation.
When you approach Earnlogic, for Partnership firm registration in Chennai, we conduct the name search and will do forth, the process after it.
GST return Filing
All businesses that have registered for GST are required to submit a GST return. If your partnership firm is registered for GST, our Compliance Manager can assist you in filing GST returns for a volume-based fee. The firm can have Partnership firm registration in Chennai.
TDS Return Filing
All TAN-registered businesses that are required to deduct tax at source are required to submit a TDS return. Our Compliance Manager can assist with the filing of a TDS return for an additional fee if your partnership firm is registered with TAN. The firm can get Partnership firm registration in Chennai.
As a result, it is critical for service providers, businesspeople, promoters, and entrepreneurs to comprehend the advantages and suitability of each company structure so that they can select the appropriate one for their company.
There are a variety of business structures to choose from, including general partnerships, limited liability partnerships, proprietorships, private limited companies, one-person companies, and limited companies. However, only a few are best suited to the needs of business entities.
Get in touch with our professionals and register the company of your choice right away. Our specialists are available to assist you with all procedures and technicalities.