Llp / company incorporation

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Anoop (Querist)
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15 July 2014 Dear Experts / practising CS-CA members...

My friend is about to go for a start-up in the IT sector with a small capital. Also, the number of persons involved in it will be less about 4 or 5...so I have 2 queries

(1) is it beneficial to start a pvt co. or LLP as per the new provisions of the Co.Act 2013..?

(2) what are the current rates for incorporating a pvt. ltd co. and LLP..?

Thanks and Regards

mehulmukati

mehulmukati (Expert)
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17 July 2014 The decision should be based on the following two key questions:
(1) do they intend to raise outside capital in the next 3 years?
(2) do they intend to issue ESOPs in the next 1-3 years?

If the answer is yes, then they will have to form a pvt ltd company, else LLP is ok.

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Anoop

Anoop (Querist)
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18 July 2014 Sir,

no, they wont be raising any outside funds. They only intend to be run in a small model with few people.

I have one more query...whats the total cost of incorporation of LLP, i mean registration cost, stamp duty etc..?

Thanks

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mehulmukati

mehulmukati (Expert)
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18 July 2014 Around 12-15 thousand; depends on paid up capital + printing, etc costs which can vary + professional fees