Business Startup in India

Benefits of Incorporated Business Structures

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All over the world, incorporated business organisations are popular structures for carrying out business activities. The main benefits of these structures are given below

• Personal Assets Protection

Liabilities of owners of incorporated business organisations are limited to their agreed contribution. It means a shareholder of a Company or a partner in an LLP only need to contribute his agreed share. After he contributes his share, he is not liable to contribute additional amount even if the company or LLP creates further liability in its name.

• Perpetual Succession

An incorporated business continues irrespective of change in its owners. It is because, as per the law an incorporated business is a legal person distinct from its owners. So change in the owners will not affect the existence of an incorporated business. This is not the case for a partnership or sole proprietorship. If a partner resigns or dies, it is the end of the partnership firm. Same is the case of a sole proprietorship firm.

• Credibility & Acceptance

Since information about the owners, the registered office and capital contribution etc are available to public verification; incorporated businesses are more acceptable to general public and prospective trade partners.

• Name Protection

An incorporated business is registered with a name and the same name will not be available for registration for any other firm.

• Investment and Loan availability

Investors always prefer an incorporated business as the same is regulated under a law. Its business scope and financial information etc are available for verification at any time.

Company Registration India

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Company form of organization is most common incorporated business structure in India. Company form of business structure started in India during the British period and after Independence, Government of India reframed the law. The present law governing company formation and administration is Companies Act, 1956.
Till 2006, company registration was possible only by filing physical documents with Registrar of Companies is each State or region. To catch up the requirements of time, the system of incorporation of company switched to electronic filing using digital signature. Document filing for company registration and other regular filings are being done through the Ministry of Corporate Affairs website http://www.mca.gov.in. Now company registration in India is paper less and all documents are filed electronically online. Registrar, register company and issue certificate electronically with the digital signature.
Registering a company is a complex process and it required detailed knowledge of law and practical experience. CompaniesInn.com, simplified the company registration process with the help of internet and technology. Our research team, developed process to deliver incorporation with quality documents in time for an affordable cost.

Company Registration Process

CompaniesInn.com unique company registration process helps you to get your company incorporated for an affordable cost with least possible time. You can choice any our company registration product to get incorporated.

Our Company Registration Products

Online Company Registration. Logon to the website http://www.companiesinn.com and place an order. Creating a user is very simple by just giving your email id and password. After creation of user, select company registration from home page and go for creating order with correct information. You may contact our customer care team for assistance.
IncorporationKiosk. CompaniesInn.com has established, offices in major cities for assisting our clients with local presence. Visit your nearest IncorporationKiosk for any assistance.
Walk in Incorporation: You can call our kiosk manager for a personal meeting at our kiosk. Walk in to our Kiosk with necessary document as per the advise, and get you company or LLP incorporated
Doorstep Incorporation :Doorstep Incorporation is only available in major cities. In doorstep incorporation, our executive visit you place and get all documents executed for company registration. You can call our customer care team for doorstep company registration.
IncorporationKit : This is a combination of online and offline incorporation. You can visit our website or call our customer care for booking an IncorporationKit (Company Registration Kit) which will cost you a nominal amount. The kit contain a book titled Guide to Start a Business, necessary forms for placing and order, DIN verification forms etc and a discount coupon for redeeming the cost of kit while placing an order for incorporation.

Our simplified Company Registration Processes

Submission of Documents. Once you choose for Company Registration, our team guide you the process of company registration. The first step is obtain DIN (Director Identification Number) for every proposed director by filing online application certified by professionals. The documents required for applying DIN are self-attested copy of PAN card in case of Indian nationals and any valid address proof. All other nationals shall produce copy of passport and valid address proof notarized.

Verification of Information and filings. Companiesinn.com believes in quality. Soon after receipt of required documents and information, our process team verify and confirm the documents and information before filing same for approvals with government authorities.

Obtain DIN number and file name. Once, quality of the information and authenticity of document established our team apply and obtain DIN number and makes application for Company Name. The name can be fixed immediately if approved by professional. It is you choice to select a name which is within the name guidelines.

Document Execution. After approval of name, the next step is execution of documents for company registration such and Memorandum of Association (MOA) and Articles of Association (AOA) by proposed promoters. Since it is a vital document, we ensure you this document with required quality.

Document Submission: Submit executed documents with CompaniesInn.com for preparing final company registration forms and filing. Our team shall file all necessary forms and documents with registrar and get your company registered.

Companiesinn Consulting LLP

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Companiesinn Consulting LLP

CompaniesInn Consulting LLP, registered on 24-04-2009 is the first LLP registered online with www.llp.gov.in.

Steps for Company Registration in India

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Company Registration is a specialized service as which requires professional knowledge of company law and practice.

www.companiesinn.com has redefined the complicated process of company registration to simple and hassle free steps. With the professional and practical expertise of our team, we have evolved a new method of incorporation with high professional standards at an affordable price.

Below are the simple processes for company registration.

1. Apply Directors Identification Number (DIN).

DIN is mandatory for all directors of a company. Each proposed directors can obtain this number using his address proof and identity proof.

2. Apply for Digital Signature Certificate (DSC).

Company registration in India is an online process where all the required documents are being filed online. These electronic documents need to be signed using DSC. For this one of the proposed director need to take a DSC.

3. Select and Apply the Name for the company.

Select few names for your company. The Company name guidelines in India have been liberalised in par with international standards. Make the application for company name.

4. Execute Company Registration documents.

Once the company name is approved, execute the company registration documents viz, Memorandum of Association and Articles of Association.

5. Apply for registration of Company.

Once Memorandum of Association and Articles of Association are executed, the same has to be filed online to respective Registrar of Companies for registration. The Registrar registers these documents and issue certificate of incorporation.

6. Other registrations.

One the company is registered; it needs to obtain Tax numbers such as Permanent Account Number (PAN), Tax Collection and Deduction Account (TAN) to open a bank account. It also requires Service Tax Registration, Value Added Tax (VAT) Registration depends on the nature of activity for functioning.

Compliance requirements for Company

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Compliance requirements for Company

The management of a company is vested with the Board of Directors. The Board of Directors manages the day to day affairs of the company subject to the provisions of the Companies Act and as per the Memorandum and Articles of Association. The decisions at the meeting of directors are carried by way of resolutions. There are certain decisions that require the approval of shareholders by way of a resolution.

The compliance process in a company is ensured by way of meetings of directors and shareholders, maintenance of Minutes, Registers and Records, appointment of company secretary, maintenance of accounts and audit and filing of periodic and event based returns to Registrar of Companies and other regulatory authorities.

Board of Directors and Meetings

Directors are appointed by shareholders and the day to day management of company is vested with the Board of Directors. The Board carry out the management through decisions taken at their meetings. The decisions at the meeting of directors are carried by way of resolutions. The Board of Directors has to meet at least once in every three months and at least 4 meetings shall be held in every year. Minutes of Board Meeting should be recorded and kept signed by the Chairman of the meetings. Though the day to day affairs are managed by the board of directors, there is certain decision that requires the approval of Shareholders meetings.

Shareholders and Meetings

Shareholders are the ultimate owners of the company and thus they are the ultimate decision making authority for matters such as appointment of directors etc. Every year, the company has to convene an Annual General Meeting (AGM) of the shareholders for adopting the Annual Accounts and appointment of Auditors for the following year. Any meetings of shareholders other than the Annual General Meeting are called Extra Ordinary General Meetings (EGM). Minutes of General Meetings of the company should also be recorded and kept signed by the Chairman of the meetings.

Company Secretary

Every company having a paid up capital of Rs.5 Crore or more shall appoint a whole time Company Secretary and every company having a paid-up share capital of Rs.10.00 Lakhs to Rs.5.00 Crores shall obtain the Secretarial Compliance Certificate from a Company Secretary in whole-time practice and have to file the same with the Registrar of Companies.

Minutes / Registers / Records and Common Seal

A company is required to maintain and preserve a set of records as required under Companies Act as follows:

1. Statutory Registers such as Register of Members, Register of Directors, Register of Directors Shareholding, Register of Charges etc.

2. Share Certificate

3. Minutes Book

4. Common Seal

Filing of Returns with office of Registrar of Companies (ROC)

Compliance mechanism under Companies Act mandates a company to file documents and Returns to office of Registrar of Companies (ROC) from time to time. Compliance related filing of returns / documents with the office of Registrar of Companies can be broadly classified in two categories;

1. Annual Statutory Compliances

a. Annual Accounts.

Every company has to prepare financial accounts consisting of Balance Sheet and Profit and Loss account on a yearly basis duly audited by a Chartered Accountant and the same has to be placed before the Annual General Meeting (AGM) of the company. Copy of the Annual Accounts has to be filed with the Registrar of Companies within 30 days from AGM.

b. Annual Return.

Every year a company shall file a return with the Registrar of Companies within 60 days of AGM containing the particulars such as address of registered office, register of its members, register of its debenture holders, shares and debentures, indebtedness, members and debenture holders, past and present, and directors, managing directors, past and present.

c. Secretarial Compliance Certificate.

In case of companies having paid-up share capital of Rs.10 Lakhs to Rs.5 Crore shall file the Secretarial Compliance Certificate with the Registrar of Companies within 30 days from AGM.

2. Event Based Compliances
The following are few major events that require a filing of a return / document with the Registrar of Companies.

a. Allotment of Shares

b. Increase Authorised Capital

c. Change of Company Name

d. Creation / Modification / Satisfaction of Charges

e. Change in Registered Office of the company

f. Filing of certain Resolutions Passed by the Board / General Meetings and Agreements entered by the company

g. Appointment of Directors / Managing Director and changes among them.

h. Conversion of Private Company to Public and vice versa

www.cnpartners.in

COMPARISON OF BUSINESS FORMS

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CRITERIA	PROPRIETORSHIP	PARTNERSHIP	LIMITED COMPANY
Minimum Number of Members	1 Person (either natural or artificial)	2 Persons (either natural or artificial)	2 in case of Private Limited Company and 7 in case of Public Limited Company
Maximum Number of Members		20 except in case of banking business. 10 in case of banking business	50 in case of Private Limited and unlimited in case of Public Limited Company
Cost of Registration	As there is no registration required, No Statutory fees is payable	The cost of registration is negligible	The cost of Registration, mainly the statutory filling fees depends on the proposed Authorised Capital
Legal Entity	Proprietorship does not have legal entity as the Proprietor and the firm are same persons	Partnership does not have Separate Legal Entity other than partners of the firm	Company has separate Legal entity other than its shareholders and Directors and can operate like a legal person
Ownership of Business	Ownership lies with Proprietor	Ownership lies with the partners	Ownership lies with members
Management	Managed by the proprietor	Managed by the Partners	Managed by the Directors elected / appointed by members of company
Ownership of Property	Ownership lies with Proprietor as the Proprietor and the firm are same persons	Ownership lies with the Partners	A Company purchases its Property in its own name
Flexibility in Ownership	The entire business needs to be sold	Ownership is restrictive; any change in partnership requires the approval of other partners.	Ownership is easily changeable , as shares of Company are freely transferable
Liability	The liability of the Owner is unlimited and extends to his personal assets	The liability of the Partners are unlimited an extends to personal property	The liability of members are Limited to the share taken and does not extends to personal property
Creditworthiness	The creditworthiness of Proprietorship firms depends upon the goodwill and creditworthiness of its Proprietor	The creditworthiness of Partnership firms depends upon its goodwill and creditworthiness of its partners	Due to Stringent Compliances & disclosures under various laws, companies enjoys high degree of creditworthiness
Business Durability	Death or Insolvency of Owner dissolves the Proprietorship	Death, resignation or Insolvency of Partner, dissolves the firm	A Company has Perpetual Succession, death or insolvency of members does not effect its existence
Chances of individual fraud		Very High, any act of individual partner will bind the firm	Negligible, all the decisions are taken collectively by board of directors
Dissolution/Termination	A Proprietorship being a creation of will, can be terminated as per will	A Partnership being a creation of will, can be terminated as per will of partners	A Company being a creation of law, can be dissolved as per procedures laid down in Law
Contractual Capacity	The contracts are entered into the name of Proprietor		A Company has a capacity to enter into any contract
Legal Governance	They are not governed by any specific law		It is governed by Companies Act, 1956

Company Registration India

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The present business structures available in India are proprietorship concerns, partnership firms and Limited company. Compare to other structures, limited company have many advantages including shareholders limited liability for business debts and obligations, perpetual succession and may more. Company Registration in India is regulated by Companies Act. Office of Registrar of Companies (ROC) in each State, register companies on filing of incorporation documents subject to company law.

Basic Requirements

Minimum requirements for registering a private limited company are two promoters/first shareholders, two directors having DIN (Director Identification Number), digital signature for one of the promoter & director. In case of public company, seven promoters/first shareholders, three directors having DIN are the minimum requirements. Minimum capital for a private limited company is INR 100000 and public company is INR 500000. Any proposed director does not have a DIN, before filing registration documents, an application for obtaining DIN shall be filed with Ministry of Corporate Affairs.

Name Availability

Company registration in

India

starts with filing of an application for name availability. The chosen name for a company should be unique across India. Usually in a day or two, concerned ROC approves name if the applied name is not similar to the name of an existing company and the proposed name is in accordance with the Name Availability Guidelines issued by the Ministry of Corporate Affairs (MCA).

Company Registration

Once the name is approved, Memorandum of Association (MOA) and Articles of Association (AOA) are drafted. On finalizing the MOA and AOA, these documents shall be subscribed/executed (by own hand and signature) by promoters/first shareholders for filing with ROC electronically. Along with these documents, Form 32 (details of directors) and Form 18 (address of registered office) are also filed. ROC of the respective State will scrutinize the incorporation documents and if the document found in order, the Company will be registered. Upon registration of the company, ROC will issue the Certificate of Incorporation and the company is ready for commercial operation. If the company is a public company, Certificate of Commencement of Business is to be obtained before commencing any commercial activity in the company.

Advantages of a Company form of Organisation

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1. Limited Liability

A Company exists as a separate legal entity from the personal life of its shareholders and Directors. Company and persons who own and manage it are separate entities and both functions separately. Liability for repayment of debts and lawsuits incurred by the Company lies on it and not with the persons who own and manage it. Registering a business form as company adds up an additional layer of protection to its shareholders in terms of business liability.

2. Perpetual Succession

Company has perpetual succession. Irrespective of the changes in the persons who own and manage the Company, the Company continues to be the same entity with the same privileges, immunities, estates and possessions. The Company shall continue to exist till its winding up in accordance with the provisions of the relevant law.

3. Transferability of Ownership / Interest

The shares and interest of any member/shareholder in the Company is a movable property and is easily transferable in the manner provided by the Articles of Association. In other forms of business, the transfer of interest is not easily possible. Therefore, it is easier to obtain or transfer the membership of a Company.

4. Separate Property

As a legal entity, Company is capable of owning its funds and other properties. The Company will be the owner of all the property vested with it. The company can control, manage and dispose the same ob its behalf. The property of Company is not the property of its shareholders.

5. Taxation

As compared to other forms of business organization, company form of organisation is always benefited with lower tax rate, better taxable benefits in terms of tax holidays in specific area of operation, subject to terms and conditions.

6. Financing the operation

Sole proprietorship or Partnership forms of business, faces the major difficulty in financing its operation. A Company can raise the required funds by issuing its shares to the public or raise funds through accepting deposits.

Being governed by stringent provisions of law, company form of organisation enjoys better creditworthiness with financial institutions. So it is easier to obtain debt financing by the companies from Banks and other financial institutions.

7. Capacity to sue

Being a legal person, in the eyes of law, a Company can sue in its name and be sued by others. The persons who own / manage the company are not directly liable for the acts and deeds of the company unless there is a violation / misuse of their fiduciary position with the Company.

8. Governance and disclosure norms

India

, Company form of organisations is governed by the Companies Act, 1956. A Company has to follow various regulatory procedures during the course of its operations ands are subject to comply with stringent disclosure norms. Good governance and transparent disclosure of operations, adds value to the business of the company and thus benefiting the true owners of the company, its Shareholders.

About COMPANIESINN

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About COMPANIESINN

CompaniesInn.com LLP (CompaniesInn), a company promoted by a team of Company Secretaries, Corporate Lawyers and Chartered Accountants. COMPANIESINN have presence in Bangalore, Delhi, Mumbai, Kolkatta, Chennai and Hyderabad and have a wide network of Practicing Company Secretaries and Chartered Accountants across the country.

We provide comprehensive Corporate Registration Services and Corporate Secretarial Services, with excellent infrastructure in the fast changing age of information technology.

COMPANIESINN HIGHLIGHTS

1. The First online Company Registration Portal in India, www.companiesinn.com, which provides Company Registration Services in Bangalore, Delhi, Mumbai, Kolkatta, Chennai, Hyderabad and all other major Cities in India along with procedural Corporate Secretarial Services..

2. Sole service provider to ING VYSYA BANK LIMITED for Charge Management of all their branches across India. CompaniesInn has been successfully managing the process with 100% registration of forms from ROC offices across the country.

CompaniesInn RANGE OF SERVICES

We at COMPANIESINN have a strategic plan to take care of the changed needs of the public / Banks and Financial Institutions in MCA21 electronic filing system.

1. COMPANY REGISTRATION SERVICES

We offer Company Registration Services across India along with the following allied services:

a. Company Registration Services – Different Packages

b. Company Kit

c. Nominee Service - Directors

d. Nominee Service - Shareholders

e. Corporate Secretarial Services

f. Registered Office Service (in selected cities of India)

g. Company Bank Account

h. Company Website

i. I E Code

j. Corporate Identity Services

k. Trade Mark Registration

2. CHARGE MANAGEMENT SERVICES:

As required under the provisions of Companies Act, 1956, particulars of charge created on the assets of the company as security for a loan availed by the company modifications and satisfaction thereof has to be registered with the office of Registrar of Companies.

CompainesInn undertake whole process of Charge Registration under MCA21 from Documentation of e-Form 8 /17 to obtaining registration Certificate.

3. DIGITAL SIGNATURE SOLUTIONS:

Our group Company is the National Distributor appointed by TATA Consultancy Services (Certifying Authority) to make available Digital Signature Certificates for MCA21 e-filing.

4. CORPORATE INFORMATION SERVICES:

We organize for Search / Status Reports; Corporate Information Reports certified by Professionals and arranges for certified copies of documents from MCA Registry.

5. CORPORATE SECRETARIAL SERVICES:

COMPANIESINN provides comprehensive Corporate Secretarial Services such as

Company Law Services

· Guidance on legal & procedural aspects of corporate affairs under Companies Act

· Documentation / Filling of Documents / Returns under Companies Act

· Merger, Demerger, Amalgamation and takeover

· Corporate Due Diligence / Secretarial Audit

· Drafting & Scrutinizing of legal documents, Memorandum of understandings, Joint venture agreements

Foreign Exchange Management Act

Guidance on FEMA regulations, Documentation / Filing of Returns under FEMA, obtaining Foreign Investment Promotion Board (FIPB) approvals etc.

Intellectual Property Laws

Registration of Trade Marks and Design

PROMOTERS

GIGI JOSEPH K J, FCS

He is a bachelor of Commerce and Fellow member of the Institute of Company Secretaries of India. He has more than 10 years of experience in Company Secretarial profession and had worked with multinational companies as Company Secretary. He is practicing as Company Secretary from 2002.

His specialized area of practice is Foreign Exchange Management and setting up of Joint venture and Foreign Collaboration agreements.

BINOY CHACKO, FCS, FCIS, MBA

He is a bachelor of Commerce and a Fellow member of the Institute of Company Secretaries of India. He is an Associate member of Institute of Chartered Secretaries and Administrators, UK and holds MBA from American City University, London campus.

He has 10 years of experience in Company Secretarial Profession and had worked as Company Secretary with a leading news paper publishing company in Kerala and an IT major in Chennai. He is practicing as Company Secretary from 2001.

His specialized in the area of practice is Company Law and SEBI matters.

What is LLP

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Limited Liability Partnerships (LLPs) are commercial vehicles which combine features of partnership and company form of business. LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.

Unlike in partnership, no partner is liable on account of the independent or un-authorized actions of other partners and accordingly individual partners are protected from joint liability created by another partner’s wrongful actions or misconduct.

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.

Limited Liability Partnership is managed as per the LLP Agreement, however in the absence of such agreement the LLP would be governed by the Schedule 1 of LLP Act 2008 which describe the matters relating to mutual rights and duties of partners of the LLP and of the limited liability partnership and its partners.

LLP has a separate legal entity, liable to the full extent of its assets, the liability of the partners would be limited to their agreed contribution in the LLP. Further, no partner would be liable on account of the independent or un-authorized actions of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful business decisions or misconduct.

Limited Liability Partnership is generally managed by Designated Partners, who are responsible for managing the day to day affairs and ensuring the compliances of all applicable laws.

Advantages

Personal Assets are protected and liability of partners are limited
Easy to form
More flexibility and easy to run
Low cost of Registration
No minimum capital contribution
No restrictions as to maximum number of partners
Partners are not liable for the act of another partner
Less compliance
No audit unless turnover is Rs.40 lakhs or more
Less Government Intervention
LLP & its partners are distinct from each other

HOW TO SELECT A CORPORATE BUSINESS STRUCTURE

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HOW TO SELECT A CORPORATE BUSINESS STRUCTURE

If you are new entrepreneur looking of doing a business in a corporate form of organisation, first you have to select a form of business organisation. There are four types of Corporate Business Forms available for entrepreneurs carrying business in

India

Private Companies
Public Companies
Limited Liability Partnerships

Selection of the appropriate form for your business depends on many factors such as the type of business, the number of persons involved, whether you want full control or prefer to share responsibilities, capital requirements, tax regulations and business liability.

If you feel the situation is not simple, consult CompaniesInn about the legal aspects of your plans and about financial implications.

PRIVATE COMPANIES

Private Limited Company is formed with minimum of 2 members and 2 Directors. Maximum number of members in a private company is restricted to 50. There are restrictions for availing loans and deposits from people other than members and Directors. The name of the company shall end with the words 'Private Limited'.

PUBLIC COMPANY

Public company is a company which is not a private company. The minimum number of shareholders ands directors required for registering a Public Company is 7 and 3 respectively. Subject to compliance of the Companies Act, there is no restriction as to number of members, issue and transfer of shares and acceptance of deposits. This type of company can not invite public to subscribe shares in the capital of the company. Also acceptance of deposit from the public also strictly regulated. Usually public companies are formed by large business houses. A private company can be converted into a public company.

LIMITED LIABILITY PARTNERSHIP (LLP)

LLP is a new corporate business form in India. A Limited Liability Partnership combines the advantages of both the Company and Partnership into a single form of organization. This business form is going to be the future organization structure available to small business, start ups and service industries.

An LLP can be formed by two partners and 2 designated partners. There is no restriction for maximum number of partners in LLP

When making a decision about the type of business to form, there are several other criteria you need to evaluate. Analyse the following points carefully before taking proper decision.

A. Legal liability

To what extent does the business owner needs to be insulated from legal liability? Majority of people approaching CompaniesInn for registration of business organistaion prefer corporate structure of business as liability of members is limited to the share/contribution to the company/LLP.

Private Limited/ Public Limited	LLP
Liability of shareholders is limited to the value of shares taken in the company. Therefore the personal assets of shareholders are free from the liabilities of the company.	Liability of partners of a LLP is limited to his contribution. Their personal assets are free from the liabilities of LLP. However, if LLP has committed a fraud or a willful misconduct, the liability of LLP and partners committed fraud become unlimited.

B. Perpetual Succession

Business Dictionary defines perpetual succession as continuation of an incorporated firm's existence, unaffected by the death of any of its owner(s) or the transfer of its shares to a new entity or person. This is the main feature of a corporate business form whether it is a company or LLP

Situation	Private Limited/ Public Limited	LLP
Death of a shareholder / partner	Company will continue and his shares will be transmitted to his legal heirs.	LLP will continue with other partners. Legal heirs of LLP will get share of profit/contribution of the deceased partner. They are not entitled to become a partner of the LLP. LLP agreement can provide a clause enabling legal heirs to become a partner of LLP.
Transfer of Shares / Partner’s interest.	Shares in a company are freely transferable. In Private companies, transfers can be regulated by articles of the company.	A partner can transfer his share of profit/loss in an LLP wholly or part. Such transfers shall always governed by LLP agreement.

C. Tax implications

Based on the individual situation and goals of the business owner, what are the opportunities to minimize taxation?

There are many tax saving options available to corporations compared to proprietorship concerns or partnerships. Double taxation is a common disadvantage often associated with incorporation a company as the company has to pay tax on its profit and tax on distributed profit as well.

In case of taxation of LLP is concerned, there is a possibility of taxation as partnership. If the situation is this, the disadvantages of double taxation also get removed.

D. Cost of formation and ongoing administration.

Cost of formation and ongoing administration is another criteria to determine form of Business Structure. This cost includes cost of record-keeping and paperwork, as well as the costs associated with incorporation.

Situation	Private Limited	Public Limited	LLP
Cost of incorporation	Higher than LLP	Higher than LLP / Private Limited	Cheap
Compliance of law	Less compared to LLP	Strict than Private Limited	Lees than company as management of LLP is governed by LLP agreement
Audit	Need to appoint auditor irrespective of size of the company	Need to appoint auditor irrespective of size of the company	Only apply if turnover INR 4000000 or above or contribution INR 2500000 or above
Record Keeping	Extensive record keeping compared to LLP	Strict and Extensive record keeping compared to LLP & Private Limited	Statutory records are basically limited to books of accounts. Others records keeping are governed by LLP agreement

E. Flexibility.

Your goal is to maximize the flexibility of the ownership structure by considering the unique needs of the business as well as the personal needs of the owner or owners. Individual needs are a critical consideration. No two business situations will be the same, particularly when multiple owners are involved. No two people will have the same goals, concerns or personal financial situations.

Situation	Private Limited / Public Limited	LLP
Change of ownership	Company is most flexible form as share can be transferred freely.	Ownership transfer is governed by LLP agreement. Usually, it requires consent of all partners.
Management	Company is managed by Directors by taking decisions in Board Meeting. Companies Act & articles regulate management of a company	LLP agreement describes how to manage LLP. It can also be managed like a company subject to agreement. LLP agreement is the basic document regulating management of LLP.
Capital	Capital of a company is sub divided into shares. Profit entitlement of based on the percentage of shareholding in the paid up capital of the company. Voting right also based on the shareholding	Capital of LLP is contribution from partner. The contribution can be cash, tangible, intangible assets and immovable properties etc. Profit share need not be based on contribution. Voting right also governed by LLP agreement

F. Future needs

When you're first starting out in business, it's not uncommon to be "caught up in the moment." You're consumed with getting the business off the ground and usually aren't thinking of what the business might look like five or ten-let alone three-years down the road. What will happen to the business after you die? What if, after a few years, you decide to sell your part of a business? Corporate form of structure is the most suitable form of Business for future requirements as it enables the owners to bring capital, change the ownership, expansion, consolidation, merger with other firms etc.

G. Reputation

Visibility and Brand, Capability to change with Time are the twin mantra of present business success. As corporate form have the advantage of separate personality from it members, you will get more acceptance from your clients, suppliers, financiers and customers.

If you are looking for more information, contact CompaniesInn

CompaniesInn.com India Private Limited

# 463, 10th Main | 13th Cross | Wilson Garden | Bangalore—560 027 |

INDIA

Tel : +91 80 4219 4109 / Mobile: +91 96633 29656

E-Mail : info@companiesinn.com

Web: www.companiesinn.com

Want to start a Business? Start as Limited Liability Partnership (LLP)

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Limited Liability Partnership (LLP) is an incorporated business organisation. It is a Body Corporate having the features of a Partnership Firm and a Limited Company. The management of LLP is defined by LLP agreement and partners have the freedom to regulate affairs of the LLP. Minimum two persons are required to register a LLP and there is no restriction regarding maximum number of members.
The major difference of it from company is in its management and administration. LLP is managed like a partnership firm based on the terms and conditions detailed in the LLP agreement, giving partners the freedom to manage their business with minimum outside interference. It also gives more flexibility as external compliances are less compared to a company. LLP can be formed by individuals and body corporate (Company, LLP or other limited liability organizations).
The concept of LLP is introduced in India in April 2009. This type of organization is very popular all over the world. In USA and Middle East countries, this type of business (known as LLC) stared functioning as early as year 1977.

LLP Registration Process:
LLP can be formed by two persons (natural or legal persons) by subscribing to the incorporation document after complying with other legal requirements. The process of registration is given below;
1. Apply for Designated Partner Identification Number (DPIN) for each proposed designated partners (Minimum 2 Individuals)
2. Apply for a name for the LLP
3. Execute and File Incorporation Document with Registrar
4. If all documents are in order, Registrar registers these documents in his records and issue’s the Certificate of Incorporation.
5. Finalize the LLP Agreement
6. After filing the other forms and agreement with the Registrar, the LLP can start its operation.

For more information visit http://companiesinn.com/companyregistrationindia

Concept of Limited Liability

2011-09-06T09:45:00.001-07:00

Concept of Limited Liability

The concept of Limited Liability is often misunderstood in the corporate world as no responsibility.

A Company or Limited Liability Partnership (LLP) is an incorporated entity having separate legal identity in the eyes of law. The Shareholders and Partners are the owners of the organisation. The Director or Designated Partner is a representative of the legal entity appointed by the owners to have a human interface with the regulators and all other stakeholders.

Usually in small Company, a shareholder becomes Director and in LLP, a Partner becomes designated partner. In their capacity as owners and representatives, they are different roles to play.

Limited liability means that the personal financial liability of a shareholder or a partner is limited to the extent of a fixed amount that he has agreed to invest in a company or a limited liability partnership. In other words, the investor is not personally liable for the business debts and liabilities of the organisation. In the unfortunate event of winding up of the incorporated business, their financial liability is limited to the unpaid amount of agreed contribution by shares or otherwise. On the contrary, the liability of sole proprietors and partners in general partnership are unlimited and even their personal assets are exposed to pay off the business debts and other business liabilities.

The Directors of the company are the persons liable to run the day to day business of Company and are liable to comply with various legal requirements. In case of LLP, Designated Partner is responsible for the legal compliances. In case of default to comply with any legal requirements they are personally responsible for the same. In their role as a Director or Designated partners, the liability is unlimited and are exposed to penal provisions under the law for the noncompliance of respective regulations.

Contat info@companiesinn.com

www.companiesinn.com

(Pioneers of online incorporation in India)

Simple Steps for Company Incorporation - India

2011-09-06T08:27:00.001-07:00

Simple Steps for Company Incorporation - India

Traditionally, company incorporation is a specialized service as it required professional knowledge of company law and practical experience. How it possible to make it simple? The answer is to simplify the incorporation process, write down the required steps and use information technology.

www.comapniesinn.com has succeeded in the process; our research team evolved new method of incorporation without losing quality at affordable price. Below are the simple processes for company incorporation.
1. Apply Directors Identification Number (DIN).
DIN is mandatory for all directors of a company. Each proposed directors can obtain this number using his address proof and identity proof. Application is an online process and usually it takes 3 to 5 days to get approval after submission of physical document.

2. Apply for Digital Signature Certificate (DSC).
Company Incorporation in India is an online process where we have to file all the documents online. These electronic documents need to be signed using DSC. For this one of the proposed director need to take a DSC.

3. Apply Name for the company.
Provide few names for submission to Registrar for consideration. You can give the same in the application for incorporation provided with this document. Ensure that name selected shall satisfy all guidelines issued by government. Usually, Registrar takes 3 to 10 days for confirming the name.

4. Execute incorporation documents.
The company incorporation documents are Memorandum of Association and Articles of Association. Once it is finalized, the same to be executed.

5. Apply for Incorporation of Company.
After name approval and execution of incorporation documents, it will be filed online to respective Registrar for registration. Usually in 4 to 8 working days, Registrar registers these documents and other forms and issue certificate of incorporation.

6. Apply for other registrations.
A company needs PAN (tax numbers), Shops Registration, Service Tax, VAT etc depends on the nature of activity for functioning.

Are you an Entrepreneur?

2011-09-05T20:42:00.000-07:00

Want to Register a Company? Want to know more about an LLP (Limited Liability Partnership)?

Get your start-up registered now online with www.companiesinn.com

We CompaniesInn.com provide Business start-up consultancy and incorporation services to new entrepreneurs and help them to get required registrations for starting a business. We help them to register Limited Company / Limited Liability Partnerships (LLP) across India.

We provide services online through our website www.companiesinn.com and 'IncorporationKiosk' (our offices) in Bangalore , Chennai, Delhi and Mumbai. Hyderabad, Kochi and soon at Pune and Kolkatta

Our Vision: Simplify Incorporation, Legal, Accounting and Taxation Services.

Our Mission :Provide cost-effective, transparent and time bound services to our customers

Flipcart, Babyoye and Zipdial are few of notable companies registered by us.

Anyone who wish to know more about the process of registering a new business are welcome to contact us for more information.

Trade Mark Registration and Company / LLP Name

2011-09-03T19:04:00.000-07:00

The ultimate protection of a name is secured only by way of a Trademark. The exclusive usage of Business and Trade name are protected under Trademark Registration.

Registering a Company or LLP with a particular Name does not protect the name as such. The only protection by way of Company / LLP name is that another company or LLP will not be registered with the same name or closely resembling name. If any other person gets the Trademark registered for your company name, he gets the priority and is empowered to take legal action against your company for infringement of Trademark and even the trademark owner can remove the registered name of the Company or LLP.

For eg. CompaniesInn.com LLP is registered as an LLP. LLP Law protects the name from registering another LLP / Company with same name CompaniesInn.com LLP or any other closely resembling names. The name 'Companiesinn.com' as such is not protected under LLP Act. 'CompaniesInn.com' is also a registered Trademark under Class 45 of Trade Mark Law. The trademark registration provides that ultimate protection to the name from use by anyone in any form of organisation for the services provided by CompaniesInn.

Once a Trademark is registered, it gives the protection on exclusive basis for the products or services under the class where the name is registered.

Company Name availability Guidelines 2011, gives priority to a registered trademark and a Trademark for which an application filed while making company name application. If your name is unique and if you wish priority for the name, it is advisable to file a Trademark Application before filing company name application

Company / LLP Name, Business Name, Brand and Logo – How does it differ?

2011-09-03T19:02:00.001-07:00

Company / LLP Name, Business Name, Brand and Logo – How does it differ?

Company name is generally referred as the name of organisation like CompaniesInn.com LLP. Business Name refers the trading name such as 'Companiesinn.com'. Brand name refers to the name of a product or service such as 'IncorporationKiosk' or 'CompanyKit' or '24hrIncorportaion etc.

Logo means the picture view of brand. The logo need not contain name or taglines. When the logo contains business / brand name or taglines it is referred as Composite Mark.

To get the right protection for Company Name, Business Name, Brand and Logo, it should be rightly applied with correct classification of Products or services. Under Trade Mark Rules the products and services are classified under 45 classes. It is very important to make the application in correct class to get protection of your name for the referred products and services

How to register a Business start-up as Limited Liability Partnership (LLP)

2011-09-03T18:39:00.000-07:00

How to register a Business start-up as Limited Liability Partnership (LLP)

CompaniesInn.com has simplified the LLP registration process as follows:

1. Apply Director Identi Identification Number (DIN).
DIN is mandatory for all Designated Partners of a LLP. Each proposed Designated Partner can obtain this number using his/her address proof and identity proof. Application is an online process and usually it takes 2 to 3 days to get approval.

2. Apply for Digital Signature Certificate (DSC).
LLP Incorporation in India is an online process where we file all documents online. These electronic documents need to be signed using DSC. For this all proposed Designated Partner need to take a DSC. It is simple; we can get it for you and your LLP. Only we need to get the application filled and signed to be submitted to us.

3. Apply Name for the LLP.
Provide few names for submission to Registrar for his consideration. You can give the same in the application for incorporation provided with this kit. Ensure that names selected shall satisfy the guidelines issued by government (see the name guidelines document). Usually, Registrar takes 3 to 5 days for confirming the name.

4. Execute incorporation documents.
The LLP incorporation document is Form 2. Our executives will be in touch with you for finalization of these documents. Once it is finalized, you can execute incorporation documents as per our guidelines

5. Apply for Incorporation of LLP.
After name approval and execution of incorporation document, it will be filed online for registration and issue of incorporation certificate. Usually in 4 to 5 working days, Registrar registers this document and issue certificate of incorporation.

6. Execute LLP Agreement and Form 4
After LLP incorporation, LLP agreement which is the governing document needs to be prepared and executed. You have 30 days to file this document with Registrar.

7. Apply for other registrations.
A LLP needs PAN (tax numbers), Shops Registration, Service Tax, VAT etc depends on the nature of activity for functioning.

For more information, Call Toll Free 1800 200 9935 or sent a mail to info@companiesinn.com

Company Registration in 24 Hours

2011-09-03T18:31:00.000-07:00

Cheers to all entrepreneurs who are thinking of starting a business in India!!!

There is a great reason for joy. The company registration in India becomes too faster than US, UK or any other developed county. In India, now you can register a company in few hours.

From the introduction of Companies Act 1956, the incorporation of a company was a lengthy process of 2-3 moths in the usual course. By the introduction of MCA21 in 2006, (www.mca.gov.in) the entire company filings became electronic by use of Digital Signature Certificate. Paper filings became a history, probably the first of its kind in the world. The Company registration process was also eased due to 24x7 electronic filing across the web. The time duration for company registration came down to 30-45 days.

Company name approval was another hurdle for aspiring entrepreneurs. The regulations were so stringent that the possibility of desired name was remote as per the draconian Company Name guidelines with conditions such as requirement of different levels of Authorised capital to include certain key words in the name of Company such as India, Global, and International etc. Adding fuel to fire, the orthodox and bureaucratic approach of Registrar of Companies made the company registration a nightmare for entrepreneurs and professionals such as company secretaries involved in the process. Registrar of Companies were scrutinising the documents as if the company promoter is going to something wrong by applying for company registration.

July 24 2011 was a remarkable day in Indian corporate history. Putting an end to all the age old process, the company name guidelines were revised at par with international standards and now professionals such as company secretaries can decide on name approval. Company name gets approved in few hours; a dream came true on July 24 2011. Trademark became an integral part of Company name approval process as the decision on company name results from company name search in MCA and Trademark search in Trademark Registry.

All the restrictive clauses such as requirement of activity in the name, authorised capital requirement for key words are all been removed. Now the entrepreneur is free to name his/her company as long as it is not same or similar to an existing company or LLP or a registered trademark or a trademark for which an application is made.

August 13 2011 will be the Independence Day for Indian entrepreneur as the company registration becomes an automatic process (subject to conditions). If the company registration documents are certified by a professional such as Company Secretary in Practice, the company will get registered and the digitally signed certificate of registration will be issued by the Registrar of companies instantly.

What more you need? Select your passionate name and go for registering your company. Pull your Identity and address proof and execute required documents and file with MCA. Have a cup of Coffee leisurely. By the time you finish your coffee break, your company will be registered and your Company Registration Certificate will be delivered in your mail box.

For more information write to binoy@companiesinn.com