Company, LLP & Partnership Firm Registration

Private Limited Company

The most common structure for growing businesses. A private company needs at least two members and can have up to 200 (Companies Act, 2013, Section 2(68)), and at least two directors.

• Separate legal entity with limited liability
• Can bring in investors through private placement, but cannot invite the public to subscribe to its shares
• Easier to raise bank finance and equity than a firm

One Person Company (OPC)

A company with a single member, who must name a nominee. It gives a sole owner limited liability and a separate legal identity, with fewer compliance requirements than other companies.

Public Limited Company

A public company is any company that is not a private company. It needs at least seven members and three directors. It may list its shares on a stock exchange, but does not have to. Shares of a public company are freely transferable under the Companies Act, 2013.

Section 8 Company (non-profit)

A company formed to promote charity, education, art, science, sports, social welfare or similar objects, which applies its income to those objects and does not pay dividends. Stamp duty on the MoA and AoA depends on the State; several States charge reduced or nil duty for Section 8 companies.

Nidhi Company

A Nidhi is a company incorporated under Section 406 of the Companies Act, 2013 and the Nidhi Rules, 2014. It accepts deposits from, and lends to, its members only, to encourage thrift and savings among them. It is a type of NBFC but is exempt from most RBI NBFC provisions and is regulated mainly by MCA.

Limited Liability Partnership (LLP)

Introduced by the Limited Liability Partnership Act, 2008, an LLP combines the flexibility of a partnership with limited liability for partners. It needs at least two partners, including two designated partners.

Partnership Firm

A partnership is formed by a partnership deed and can be registered with the Registrar of Firms of the State. The firm pays tax on its profit, and partners’ share of that profit is not taxed again in their hands.

Trust Registration

Public charitable trusts are registered with the Charity Commissioner under the State’s public trusts law. We help with the trust deed and registration application.

Conversions

• Partnership firm or LLP to company: under Section 366 of the Companies Act, 2013 and the related rules. The firm must meet the conditions in Section 366, have no unsatisfied charges, and all partners must agree.
• Firm or company to LLP: under Sections 55 to 58 and Schedules II to IV of the LLP Act, 2008. Discuss the tax impact with your tax adviser before converting.
• Trust to company or LLP: by forming a new entity and transferring the business, subject to the trust deed and applicable law.

Each conversion needs Class 3 DSCs for all directors/partners and subscribers. We tell you the exact documents for your case.