Business is a significant source of honest income today. You can build a business according to your needs and preferences. You can frame your business as much as your manpower, your capital and business space will help you. You can start your dream business anytime.
All Businesses are small at first and then gradually grow. You too can grow from small to big if you have desire, dedication and hard working ability. DNRLGK respects your wishes.
But the fact is that not everyone can make profits year after year in his business. For that, some scientific methods must be adopted. That’s why DNRLGK gives you all the wisdom to frame financial planning, knowledge of various laws, process of accounting and many more to build & protect your business. And we have been doing this for 25 years for the businessmen. So most welcome to DNRLGK.
Most popular type of business entity in India. It will help you to develop your image as well as credibility in market. Just you have to register your Company under the Companies Act’2013 (ROC) with the Ministry of Corporate Affairs, Govt. of India. (MCA)
Minimum Requirement
1. Company name should not be similar to any existing registered Indian Company.
2. Minimum two directors ...one should be Indian.
3. Minimum capital contribution.
4. Registered Office must be within India.
Benefits
1. Seperate Legal Entity.
2. Limited Liability.
3. Perpetual Succession.
4. Transferability of shares.
5. Better image & credibility in market.
6. Valuable position to raise funds and loans.
7. Limited Liability protection.
8. Moderate Tax rate.
9. Moderate Statutory compliance.
It is a suitable business formation for small traders, it is an extension of Sole Proprietorship.
One Person Company (OPC) is formed with only one person & should be register your Company under the Companies Act’2013 (ROC) with the Ministry of Corporate Affairs, Govt. of India. (MCA)
Benefits
1. Separate Legal Entity.
2. Limited Liability.
3. Smooth Succession.
4. Better image & credibility in market.
5. Valuable position to raise funds and loans.
6. Moderate Tax rate.
7. Less Statutory compliance than Pvt. Ltd. Company.
What is Sec-8 Company?
The Companies Act defines a Section 8 company as one whose objectives is to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives.
Features of a Section 8 Company
A Section 8 company comprises of the following distinct features that most other kinds of companies do not have:
i. Charitable objectives: Section 8 companies do not aim to make profits. Their objectives are purely charitable in nature. They aim to further causes like science, culture, research, sports, religion, etc.
ii. No minimum share capital: Section 8 companies, unlike all other companies, do not require a prescribed minimum paid-up share capital.
iii. Limited liability: Members of these companies can only have limited liability. Their liabilities cannot be unlimited in any case.
iv. Government license: Such companies can function only if they have the Central Government’s license. The Government can revoke this license as well.
v. Privileges: Since these companies possess charitable objectives, the Companies Act has accorded several benefits and exemptions to them.
vi. Firms as members: Apart from individuals and associations of persons, Section 8 also allows firms to be members of these companies.
Advantages/Privileges
People generally prefer to conduct charitable activities by forming Section 8 companies instead of regular NGOs and associations. This is because they have limited liability, so their personal assets will not be used in paying debts of the company. Here are some advantages that these companies enjoy:
• Members have limited liability.
• No minimum capital requirements.
• They get several tax exemptions.
• Stamp duties and high fees are not payable for registration.
• They have perpetual existence and separate legal status.
• Exemptions from carrying out several procedural compliances.
• More credibility than compared to NGOs, societies, and trusts because they are recognized by the Central Government’s license.
A Public Limited Company is a company that has limited liability and also can offer shares to the general public. A Public Limited Company is strictly regulated and has to disclose its financial reports periodically to its shareholders. It is the most suited business formation for businesses having heavy investments. A Public Limited Company should have a minimum of 3 directors and 7 shareholders. A Public limited Company is required to have a minimum paid-up capital of 5 L and above as prescribed under the act. As per Companies Act 2013, a Public Limited Company must issue a prospectus for its public which includes a Comprehensive statement of the affairs of the company. A Public Limited Company gets a broader exposure for raising funds for its business. It can list itself in various stock exchanges in India and raise capital from stock market. A Limited Company enjoys a wide range of funding options like through bank loans, general public and institutional investors.
A Proprietorship is a type of business format in which a single person will be the owner and can manage easily. In a sole proprietorship firm there is no legal difference between the owner and the business. The sole proprietorship business is a preferable and popular business form. It is simple and easy to form with a minimum cost.
What Do You Mean by Limited Liability Partnership (LLP)?
• An LLP is a limited liability partnership where each partner has limited personal liability for debts or claims of the partnership. Partners of an LLP aren't held responsible for the acts of other partners.
KEY FEATURES :
• Limited liability partnerships (LLPs) allow for a partnership structure where each partner’s liabilities are limited to the amount they put into the business.
• Having business partners means spreading the risk, leveraging individual skills and expertise, and establishing a division of labour.
• Limited liability means that if the partnership fails, then creditors cannot go after a partner’s personal assets or income.
• LLPs are common in professional businesses like law firms, accounting firms, medical practices, and wealth managers.
Which one is better? An LLP or a Pvt. Ltd. Com?
For instance, if you plan to run a small business with a partner and with limited capital, an LLP is the right fit. On the other hand, if a business is looking at aggressive growth and substantial funds, it should opt for a Private Limited Company.
The accounts of every LLP shall be audited in accordance with Rule 24 of LLP, Rules 2009. Such rules, inter-alia, provides that any LLP, whose turnover does not exceed, in any financial year, forty lakh rupees, or whose contribution does not exceed twenty five lakh rupees, is not required to get its accounts audited.
Persons who have entered into partnership with one another are called individually "partners" and collectively a "firm", and the name under which their business is carried on is called the "firm name".
Some advantages of partnership over private limited company include ease of establishment and lower costs. A partnership consists of two or more individuals who own a business together and share all its profits and losses, as well as the right to manage and make decisions on behalf of the business.
A partnership is a kind of business where a formal agreement between two or more people is made who agree to be the co-owners, distribute responsibilities for managing an organization and communicate the income or failures that the firm creates. The aim of partnership firm is to turn a profit at maximum level.
The main features are as below:
• Sharing of profits and losses.
• Mutual agency.
• Unlimited liability.
• Lawful business.
• Contractual relationship.
Partners continue the business for any length of time-based on their desires. It can continue for as long as the partners desire and is dissolved when a partner gives notice of withdrawal to the firm. It will continue until the partners develop mutual trust.