What is the best choice for a new company to register

 

              Today with so many companies opening in India. Companies can be registered in so many different ways. Read on to learn about the different ways a company can be formed. The number of registered companies in India reached 1.43 million as of January 2022. Over 1.42 million of these were companies limited by shares.

Business Registration for Startup

1. Private Limited Company.
2. Public Limited Company.
3. One Person Company.
4. Limited Liability Partnership.
5. Partnership Firm.
6. Sole Proprietorship.
7. NGO/Trust.
8. Nidhi Company.

         Based on the above data, there are 1.42 million companies limited by shares. In other words, the best way to start your company depends on its future. The private limited company is the best option if your company is listed in IPO. You can also go with a limited liability company that is a limited liability partnership.

   

          In terms of director or partner benefits, you can start an LLP if you're not planning to go public. Partners in LLPs receive remuneration, while directors in private limited companies receive salary and dividends.

There are Registrations required for the Startup

1. Private Limited Company.

    

Step for new Company Incorporated

• Selection Suitable Name
• Application ROC
• MOA&AOA 
• Filing Form and Documents
• This is a complete online Process
• Filing From INC 20A

2. Limited Liability Partnership.

• Obtain Digital Signature
• LLP Name Application through RUN-LLP
• Incorporation of LLP- Form FiLLiP- (Includes DIN Application and PAN and TAN Application)
• File LLP Agreement        

Particulars	Pvt Ltd Co.	Limited Liability Partnership.
Company Name	Should end with Pvt. Ltd.	Should end with LLP.
Law Applicable	Companies Act 2013	Limited Liability Partnership Act, 2008
Minimum share capital	No requirement for minimum share capital.	No requirement for minimum share capital
Members Required	Minimum two Maximum 200	Minimum two Maximum no limit
Directors required	Minimum two Maximum 15	Two designated partners Maximum not applicable
Board meeting	Within 120 days of the previous board meeting. Minimum 4 board meetings to be held each year.	Not necessary
Statutory Audit	Mandatory	Not compulsory unless the partner’s contribution exceeds 25 lakhs or annual turnover exceeds 40 lakhs
Annual Filing	Annual statement of accounts & annual return with ROC. These are filed in form AOC 4 and MGT 7.	Annual accounts and annual returns are to be filed with RoC. These returns are filed in LLP form 8 and LLP form 11. Check more details here.
Liability	Limited	Limited
Transferability of shares	Can be transferred easily. It can only be restricted by the Article of association.	Can be transferred by executing the agreement before a notary public
Foreign Direct Investment	Eligible via automatic and government route	Eligible via automatic route
Suitable to which type	Businesses have turnover, and entrepreneurs need external funding.	Startups, Businesses, trade, manufacturers, etc.

Here are the differences between a private limited company and a limited liability partnership.