25 September 2015
Hi all, Please suggest. what are the important points to consider while deciding the types of company(pvt,llp,public Ltd) incorporation.
The word Company denotes any entity formed under the Companies Act, 2013. Most people equate word with a Private Limited Company; however, a company could broadly be a Private Limited Company or One Person Company or Limited Company or Section 8 Company. Based on the activity/requirement of the promoters, different types of company can be incorporated under the Companies Act, 2013.
Private Limited Company
Private Limited Company can be of three types: i) company limited by shares, ii) a company limited by guarantee, iii) unlimited company. Private limited company are those types of company that have a minimum of two members and a maximum of 200 members.
Company Limited by Shares
Company limited by shares is the most common type of Private Limited Company. A company limited by shares means a company having the liability of its members limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them.
Company Limited by Guarantee
Company limited by guarantee means a company having the liability of its members limited by the memorandum to such amount as the members may respectively undertake to contribute to the assets of the company in the event of its being wound-up.
Unlimited Company
Unlimited company means a company not having any limit on the liability of its members.
To register a Private Limited Company in India, visit IndiaFilings.com
One Person Company
One Person Company (OPC) is a newly introduced type of company. OPC was introduced in the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. One of the biggest advantages of a OPC is that there can be only one member in a OPC, while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership. Similar to a Company, a OPC is a separate legal entity from its members, offers limited liability protection to its shareholders, has continuity of business and is easy to incorporate.
To incorporate a One Person Company, visit IndiaFilings.com
Limited Company
Limited company requires a minimum of three Directors and has no limit on the maximum number of members (shareholders). Limited company has more stringent and extensive compliance requirements when compared to a private limited company.
To incorporate a Limited Company, visit IndiaFilings.com
Section 8 Company
A Section 8 Company of Companies, 2013 is the same as Section 25 company under the old Companies Act, 1956. Section 8 company is one of the most popular forms of Non- Profit Organisations in India. A Section 8 company can be established for “promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object”, provided it “intends to apply its profits, if any, or other income in promoting its objects” and “intends to prohibit the payment of any dividend to its members.”. To register a section 8 company in India, the process is similar to the incorporation of other companies (except an additional license is required).
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