Starting a new
The first question that comes to the mind is
How do I start my new business,
What should be the capital, what should be
the form of enterprise,
Whether a Private Limited Company/ LLP/ Sole
Properitorship or Partnership
We will guide you phase by phase
"How to start your New Company"
For more details Check our page on Company
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We can ensure you
about the due compliance of accounting standards and tax
laws. We can ensure
you about the accuracy of data. There will be timely and proper maintenance of
records. There will be standardization of work and processes. You are getting
professional service at reasonable cost.
Company Formation Mumbai is an All business Essential
services Provider; which takes over the complete burden of your
There are chances that your books are not in order for reasons
like lack of
time due to busy work schedule, difficulty in having skilled
manpower at reasonable cost and also that you are not always conversant with
Legal & accounting rules and norms.
What is a Private Limited
A Private Limited Company is a Company limited by shares
in which there can be maximum 50 shareholders, no invitation can be made to the
public for subscription of shares or debentures, cannot make or accept deposits
from Public and there are restriction on the transfer of shares. The liability
of each shareholder is limited to the extent of the unpaid amount of the shares
face value and the premium thereon in respect of the shares held by him.
However, the liability of a Director / Manager of such a Company can at times be
unlimited. The minimum number of shareholders is 2.
What is a Public Limited
A Public Limited Company is a Company limited by shares
in which there is no restriction on the maximum number of shareholders, transfer
of shares and acceptance of public deposits. The liability of each shareholder
is limited to the extent of the unpaid amount of the shares face value and the
premium thereon in respect of the shares held by him. However, the liability of
a Director / Manager of such a Company can at times be unlimited. The minimum
number of shareholders is 7.
What are the advantages of a
A limited company has following
Members' (the directors and shareholders) financial liability
is limited to the amount of money they have paid for shares.
management structure is clearly defined, which makes it easy to appoint, retire
or remove directors.
If extra capital is needed, it can be raised by
selling more shares privately.
The death, bankruptcy or withdrawal of
capital by one member does not affect the company's ability to trade.
LIMITED LIABILITY PARTNERSHIP
LLP is an alternative corporate business form that gives
the benefits of limited liability of a company and the flexibility of a
The LLP can continue its existence irrespective of changes in
partners. It is capable of entering into contracts and holding property in its
The LLP is a separate legal entity, is liable to the full extent of
its assets but liability of the partners is limited to their agreed contribution
in the LLP.
Further, no partner is liable on account of the independent or
un-authorized actions of other partners, thus individual partners are shielded
from joint liability created by another partner’s wrongful business decisions or
Mutual rights and duties of the partners within a LLP are
governed by an agreement between the partners or between the partners and the
LLP as the case may be. The LLP, however, is not relieved of the liability for
its other obligations as a separate entity.
Since LLP contains elements
of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is
called a hybrid between a company and a partnership.
Structure of an
LLP shall be a body corporate and a legal entity separate from
its partners. It will have perpetual succession.
Advantages of LLP
LLP form is a form of business model which:
organized and operates on the basis of an agreement.
flexibility without imposing detailed legal and procedural requirements
enables professional/technical expertise and initiative to combine with
financial risk taking capacity in an innovative and efficient
between LLP & a Company
A basic difference between an LLP and
a joint stock company lies in that the internal governance structure of a
company is regulated by statute (i.e. Companies Act, 1956) whereas for an LLP it
would be by a contractual agreement between partners.
management-ownership divide inherent in a company is not there in a limited
LLP will have more flexibility as compared to a
LLP will have lesser compliance requirements as compared to a