REGULATORY APPROVALS AND
There are various ways for a person to set up business in India namely a Company, a One Person Company(OPC) Limited Liability Partnership (LLP), Proprietorship, a Partnership, Branch office, trust, society etc.
Before deciding on the type of entity one wants to set up it is essential that we know the pros and cons of the different types of entities. QbeSquare helps you contemplate and decide the best options for your business. We also help you understand the government regulations and requirements for each type of entity that you may wish to set up.
- Registration of Company with Registrar of Companies under Companies Act.
- Registration of Limited Liability Partnerships under LLP Act.
- Registration of Trust / Society / Non-Profit Organisation.Seeking approval / registration for setting up Branch / Liaison / Project office with Reserve Bank of India.
- Registration of Branch/ Liaison/ Project Office with the Registrar of Companies.
As the name suggests, One Person Company can be formed with just one person as the Shareholder and Director as compared to a Private Limited Company where minimum 2 people are required to act as Shareholder s cum Directors of the Company.
Also, there are less compliances in an One Person Company as compared to Private Limited Company.
The best type of entity for any person will largely depend on two factors (a) if they are looking for funding in the near future (b) if they are looking to attract new talent by offering ESOP to employees.
If the entity is not looking for either of the above mentioned factors then an LLP or a One Person Company shall be ideal. However, this may defer from case to case.
There are 2 major difference between a partnership firm and Limited Liability Partnership (LLP)
- (i) A Limited Liability Partnership is a separate legal entity i.e. a Limited Liability Partnership is a legal person in the eyes of the law unlike a partnership firm.
- (ii) The partners of a Limited Liability Partnership have limited liability (up to the amount of their individual contribution) towards the Limited Liability Partnership . However, in a Partnership firm the liability of the partners is unlimited and can extend to their personal assets as well.