Other Entity Registration

Other Entity Registration

Public Limited Company Registration

  1. Most popular form of Business entity in case of large number of shareholders.
  2. Eligible for IPOs and FPOs
  3. 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
  4. Flexibility of addition and deletion of Directors and Shareholders
  5. Most suitable for funding from Investors, PE firms, Banks
  6. Flexibility of raising funds by issue of Debentures/Bonds
  7. No restriction on the transferability of the shares of a Public company
  8. Free to invite public for subscription i.e., a Public Limited Company Registration can issue a Prospectus.
  9. 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

  1. Most popular form of Business entity for professionals
  2. Flexibility of addition and deletion of partners
  3. Lower incorporation cost as compare to Pvt Ltd Co.
  4. Lower annual ROC filing cost as compare to Pvt Ltd Co.
  5. No dividend distribution tax
  6. No minimum alternate tax. However, alternate minimum tax is applicable
  7. No Audit required if Turnover is less than Rs 40 lakhs and capital is less than Rs 25 lakhs.
  8. The liability of Partners are limited as compared to a traditional partnership firm
  9. 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

  1. Easy to create firm. Also, any name may be chosen
  2. Can be registered as well as unregistered.
  3. Ideal for small business in unorganized sector. However, LLP has more advantage than firms
  4. Less statutory compliances as compared to Companies and LLP
  5. Not conducive for funding
  6. Taxable @30%

Sole Proprietorship Firm Registration

  1. No separate registration required. No separate PAN required
  2. Only business registrations like GST registration etc required.
  3. Any name can be kept
  4. Income tax slab benefit is available
  5. No separate legal entity
  6. Liability of proprietor is unlimited
  7. 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