PRIVATE LIMITED COMPANY (PVT) INCORPORATION IN INDIA
Private limited company is an independent legal entity with limited liability. Private limited company is a
limited liability company formed with minimum two and maximum fifteen directors under Companies Act
2013 and it can have minimum two and maximum two hundred shareholders/members. In this form of
company, directors have limited liability to shareholders, perpetual succession, easy to manage
compliances, easy equity funding, and transferable ownership i.e. sale or purchase of company.
FEATURES OF A PRIVATE LIMITED COMPANY (PLC)
Minimum 2 Directors & Shareholders (Share subscribers) require
Maximum 15 Director and 200 Shareholders (Members) allowed in PLC
All Directors Should obtain DIN (Directors Identification Number)
A Body corporate can be a shareholder in PLC
Annual Statutory Audit compulsory by Practicing CA
Annual ROC Filing Mandatory
Income Tax rate @ 22% on net profit
Eligible to apply for Startup Recognition subject to another T&C
Most Ideal form of business to raise external funds from Investors
Can offer ESOP to its employee
Separate Legal Entity and Limited Liability
PUBLIC LIMITED COMPANY
Public limited company formation is almost similar to a private limited company except minimum
requirement of directors and members are 3 and 7 respectively.
FEATURES OF A PRIVATE LIMITED COMPANY (PLC)
Minimum 3 Directors & Maximum 15.
No limitation for number of Members/shareholders
Can raise fund from public by issuing share subject to compliance of other provisions of the Act
All the Public companies to use the word limited after its name
Prospectus– Prospectus is a detailed statement of the company affairs which is issued by a company
for its public. Thus, in the case of Public limited company, there is a need to issue a prospectus.
However, in case of Private limited Companies, public
All other features of a Private Limited Company Shall apply here as well.
ONE PERSON COMPANY (OPC) INCORPORATION IN INDIA
The concept of One Person Company (OPC) is introduced with Companies Act, 2013. Any one person who
is an Indian citizen and resident in India is eligible to incorporate One Person Company. This form of
company formation is perfect replacement for sole proprietorship model of businesses and eligible to apply
for Startup India Recognition, Bank credit facilities and more preferences than a informal business of sole
proprietorship
FEATURES OF ONE PERSON COMPANY (OPC)
Single Shareholder and Director can be same person.
Maximum 15 Directors allowed
1 Nominee is mandatory (Indian Resident)
Eligible to apply for Startup Recognition
Annual Statutory Audit compulsory by Practicing CA
Annual ROC Filing Mandatory
Income Tax rate @ 22% on net profit
Separate Legal Entity and Limited Liability
A person can be member in only one OPC. Means a Person can not form more than one OPC.
If OPC crosses a turnover of over Rs 2 crores or has a paid-up capital more than Rs 50 lakhs. It must
be converted into a private or public within 6 months.
Business ownership control by single person.
LIMITED LIABILITY PARTNERSHIP (LLP) IN INDIA
Best option if your business or Profession is small as well as it has Less ROC Compliances
FEATURES OF LIMITED LIABILITY PARTNERSHIP (LLP)
- Minimum 2 Partners require to form LLP
- Maximum 200 Partners allowed in LLP
- All Partners should obtain DIN
- Annual Statutory Audit not mandatory up to Turnover Rs 40 lakhs / Capital contribution up to Rs
25 Lakhs
- Less ROC Compliance - Low running cost
- HIGH NON-COMPLIANCE PENALTY - ROC Non-Compliance penalty Rs 100 per day per form
(2 forms yearly). No Maximum Penalty Cap.
- LLP can raise FDI
- In LLP there is not provision for issue of Share Capital
- LLP is convertible into Private Limited Company after 2 years with minimum 7 partners
- HIGH TAX - Normal Income Tax rate like Partnership firm @ 30% on net profit
- LLPs are required to maintain proper books of accounts since registration on cash basis or accrual
basis
PARTNERSHIP FIRM
Partnership Firm is the most popular business type wherein two or more person join together to start a
business at agreed profit-sharing ratio by simply preparing a Partnership deed on non-judicial stamp paper.
Partnership Firm in India is governed by Indian Partnership Act 1932 and Partnership Deed is the important
document here. Partnership is easy to form, and the compliance is minimal as compared to companies and
LLP. There 2 types of Partnership Firm - A) Registered Firm and D) Un-registered Firm. The Act does not
require the Partnership Firm to be registered with Registrar of Firm or Any other Competent Authority
authorized to Register Firm.
SECTION 8 COMPANY INCORPORATION IN INDIA
Under Section 8 of the Companies Act, a person or a group of people can apply to the Registrar of
Companies with the necessary forms to incorporate a charitable corporation. If satisfied, the Central
Government can accept such an application on any terms and conditions set by the license it has granted.
COMPANY INCORPORATION IN INDIA FOR FOREIGN NATIONAL
NRIs or foreign nationals can register a company and make investments in India subject to the Foreign
Direct Investment Policy and Guidelines issued by the RBI. The only condition as per Incorporation rules
is that a person of Indian Nationality should be appointed on Board of Director of the company.
COMPANY FORMATION IN DUBAI-UAE
An Indian company or Entrepreneurs intend to incorporate a company in the UAE can choose to set up
operations as a branch, representative office or registered company, or it can appoint a commercial agent
to sell its products in the UAE market or export them. New companies can also choose to conduct their
activities from a Free Zone, which is a designated, self-regulated area set up to catalyze economic activity
within an emirate and is governed by its own set of rules and regulations. There are around 40 Free Zones
in the UAE, with more under development.
COMPANY REGISTRATION IN SINGAPORE
Singapore offers a highly conducive environment for companies that are looking at new opportunities in
the Asia region. Its robust regulatory framework, coupled with a stable political and economic structure,
pro-business government and a well-established judicial system, have created the ideal platform for
investment and made it a major commercial, financial- and wealth management hub. Singapore is
recognized for its high government efficiency and competitiveness while its robust legal and regulatory
regimes make it the most transparent country in Asia.
COMPANY INCORPORATION IN HONG KONG
The appeal of Hong Kong as a global business hub connecting to Asia remains as strong as ever. As a
Special Administrative Region (SAR) of China, Hong Kong offers a unique blend of economic and legal
systems distinct from mainland China. For instance, Hong Kong adopts a Free Trade Policy and experiences
less government interference compared to China.
This, combined with a common-law-based legal framework and a straightforward taxation system,
including flat rate profits tax and favorable corporate tax rate, makes Hong Kong an ideal place of business
for international entrepreneurs and a popular offshore banking location.
COMPANY INCORPORATION IN CYPRUS
- A highly developed business services infrastructure
- Excellent reputation, stable government and special status within the EU
- The ability to conduct business in a quality low-tax jurisdiction
- Well-developed and sophisticated banking system
- Non-resident companies are not subject to the local corporate tax
COMPANY INCORPORATION IN UNITED KINGDOM
The United Kingdom (UK) is an attractive destination for entrepreneurs worldwide. It is one of the top
destinations to start a business since it has strong governance, high-quality facilities, well-equipped
infrastructure and well-implemented rules and regulations.
The United Kingdom (UK) is an attractive destination for entrepreneurs worldwide. It is one of the top
destinations to start a business since it has strong governance, high-quality facilities, well-equipped
infrastructure, and well-implemented rules and regulations.
COMPANY INCORPORATION IN MAURITIUS
- One of the world most creditable offshore jurisdictions
- No capital gains or withholding taxes levied
- Social, political and economic stability
- GBC1 can access to double tax treaty network (37 DTTs)
- Strong governmental support to the financial sector
COMPANY INCORPORATION IN USA
The United States of America (the USA) is known to many for being the leaders in many different fields,
ranging from having the most technologically powerful economy to the largest consumer market.
Thus, is sought after by worldwide businesses but not many businesses are able to enter this lucrative market
due to the complication of different regulations among different states of the USA; and the procedures to
enter the US market.
COMPANY INCORPORATION IN BRITISH VIRGIN ISLANDS
The British Virgin Islands (BVI) is a group of islands in the Caribbean Sea located approximately 80
kilometers east of Puerto Rico. The BVI is a British Overseas Territory, which became self-governing in
1967 and is a member of the British Commonwealth.
Since the BVI introduced International Business Company (IBC) legislation in 1984, its offshore financial
services sector has expanded rapidly. In 2004, the IBC Act was replaced by the Business Companies Act,
which further enhanced the jurisdiction’s popularity.