Public Limited Company Registration
- Most popular form of Business entity in case of large number of shareholders.
- Eligible for IPOs and FPOs
- Minimum 3 Directors and 7 Shareholders/members. Can be even family members or relatives or friends. Should be major. No restriction on maximum no. of members
- Flexibility of addition and deletion of Directors and Shareholders
- Most suitable for funding from Investors, PE firms, Banks
- Flexibility of raising funds by issue of Debentures/Bonds
- No restriction on the transferability of the shares of a Public company
- Free to invite public for subscription i.e., a Public Limited Company Registration can issue a Prospectus.
- Company is liable to tax on global income at different tax rates like 15%, 22%, 25% and 30% depending upon case to case. Also, Subject to MAT @ 15% of book profits.
Limited Liability Partnership (LLP) Registration
- Most popular form of Business entity for professionals
- Flexibility of addition and deletion of partners
- Lower incorporation cost as compare to Pvt Ltd Co.
- Lower annual ROC filing cost as compare to Pvt Ltd Co.
- No dividend distribution tax
- No minimum alternate tax. However, alternate minimum tax is applicable
- No Audit required if Turnover is less than Rs 40 lakhs and capital is less than Rs 25 lakhs.
- The liability of Partners are limited as compared to a traditional partnership firm
- LLPs are liable to tax on global income @30%. Further, LLPs are liable for alternate minimum tax @18.5% on its book profits.
Partnership Firm Registration
- Easy to create firm. Also, any name may be chosen
- Can be registered as well as unregistered.
- Ideal for small business in unorganized sector. However, LLP has more advantage than firms
- Less statutory compliances as compared to Companies and LLP
- Not conducive for funding
- Taxable @30%
Sole Proprietorship Firm Registration
- No separate registration required. No separate PAN required
- Only business registrations like GST registration etc required.
- Any name can be kept
- Income tax slab benefit is available
- No separate legal entity
- Liability of proprietor is unlimited
- Not conducive for funding
Time Involved in the Process
- 08-10 working days till getting Incorporation certificate
- 8 working days in getting hard copies of PAN/TAN
- 5-7 working days in an opening bank account
Documents Required for Registration
- Copy of PAN and Aadhar card of Directors/ Partners/Proprietors
- Copy of passport size photos of Directors/ Partners/Proprietors
- Copy of utility bills or bank statement in name of Directors/ Partners/Proprietors
- Mobile and Email ids of Directors/ Partners/Proprietors
- Business address proof- Copy of latest electricity bill + Rent Agreement+ NOC from Landlord.
- In case of owned property, copy of latest electricity bill and sale deed in name of owner
- Name, object of the company, nature of business, list of major products/services