BUSINESS SETUP
A Private Limited Company is a type of business structure registered to give a separate legal existence to the business apart from its directors and shareholders. This means that a company continues to exist even after the death of any member. Private Limited Company registration is regulated by the Companies Act, 2013 and the Ministry of Corporate Affairs acts as the regulatory body for registration.
In a Private Limited Company, the shareholders are considered to be the owners of the company and the directors are responsible for the everyday operations of the business. This ensures that the personal assets of the shareholders and directors are separate from that of the company.
To register a Private Limited Company in India, there must be at least 2 directors and 2 shareholders.
In a Private Limited Company, the shareholders are considered to be the owners of the company and the directors are responsible for the everyday operations of the business. This ensures that the personal assets of the shareholders and directors are separate from that of the company.
To register a Private Limited Company in India, there must be at least 2 directors and 2 shareholders.
OPC or One Person Company is one of the easiest forms of corporate entities to manage. OPC is a hybrid of Sole-Proprietorship and Corporate form of business. One person company (OPC) means a company formed with only one (single) person as a member, unlike the traditional manner of having at least two members. A new concept has been introduced in the Company’s Act 2013, about the One Person Company (OPC). In a Private Company, a minimum of 2 Directors and Members are required whereas in a Public Company, a minimum of 3 Directors and a minimum of 7 members. now as per Section 2(62) of the Company’s Act 2013, a company can be formed with just 1 Director and 1 member. It is a form of a company where the compliance requirements are lesser than that of a private company.
A producer company is basically a corporate body registered as a Producer Company under Companies Act, 1956 (As amended in 2002). A Producer Company is a hybrid between cooperative societies and private limited companies. A producer company can be defined as a legally recognized body of farmers/ agriculturists with the aim to improve the standard of their living, and ensure a good status of their available support, incomes and profitability. Under Companies Act 1956, a Producer Company can be formed by 10 individuals (or more) or 2 institutions (or more) or by a combination of both (10 individuals and 2 institutions.
Who can form a producer company?
Any ten or more individuals, each of them being a producer or any two or more Producer institutions, or a combination of ten or more individuals and Producer institutions, desirous of forming a Producer Company having its objects specified in section 581B and otherwise complying with the requirements of this Part and the provisions of this Act in respect of registration, may form an incorporated Company as a Producer Company under this Act.
Who can form a producer company?
Any ten or more individuals, each of them being a producer or any two or more Producer institutions, or a combination of ten or more individuals and Producer institutions, desirous of forming a Producer Company having its objects specified in section 581B and otherwise complying with the requirements of this Part and the provisions of this Act in respect of registration, may form an incorporated Company as a Producer Company under this Act.
A Limited Liability Partnership i.e. 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 is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP, unlike a partnership which is not a separate entity from the partners and is documented through a Partnership Deed. The LLP Agreement describes the mutual rights and duties of partners inter se and those of the LLP.
A partnership deed, also known as a partnership agreement, which is register under Indian Partnership Act, 1932. A partnership deed is a document that outlines in details the rights and responsibilities of all parties to a business operation. A partnership is a kind of business where a formal agreement between two or more people is made and agreed to be the co-owners, distribute responsibilities for running an organization and share the income or losses that the business generates.
Sole Proprietorship in simple words is a one-man business organisation. Sole proprietorship is registered under labour Department (Shop Act) or District Industries Centres. The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts. A sole proprietorship can operate under the name of its owner or it can do business under a fictitious name. The sole proprietorship is a popular business form due to its simplicity, ease of setup, and nominal cost. A sole proprietor need only register his or her name and secure local licenses, and the sole proprietor is ready for business.