In India, the Ministry of Corporate Affairs (MCA) examines the merger policy and its legitimacy. Most companies in India such as private limited companies, sole proprietors, public company, NBFC are covered under the Companies Act, 2013. Company incorporation in T.Nagar – Chennai states that the exception to this is limited liability partnerships (LLPs). These fall under the LLP Act, 2008. For this reason, most policies for LLPs are different compared to most companies. Let’s take a brief look at the company incorporation process.
At first glance, the company merger approach may seem too difficult. However, this is a much easier approach if you follow step by step. Let’s look at the steps and how you can go about setting up your company and getting your idea started.Contact Us
Determining the right business structure.
This is a big step when you start with the process of merging your company. It basically determines the direction your company will take, whether you are willing to invest, whether you want to limit liability, whether you want to go it alone, it all depends on what you think is best for your start-up.
Company incorporation in Chennai states that depending on the decision you make, you can set up the following types of companies in India.
Private Limited Company
Minimum number of shareholders: 2
Limited Liability: If the company incurs losses, members should pay only for the value of their shares.
Permanent Inheritance: The Company still exists after death or departure of the directors
Authorized Capital: Minimum of Rs. 1 lakhs. Read more about authorized capital
Stock: The shareholding in a private limited company is closed as they cannot attract investments or commercial shares to the public.
Exceptions: Private Limited Companies are eligible for a number of consent and operational exemptions. Read: Exceptions Private Limited Companies.
Limited liability sharing
Minimum number of shareholders: 2
Limited Liability: Similar to Private Limited Companies
Light Tax Scheme: LLPs are taxed as a joint venture
Share: LLPs have an open shareholding which means they can attract commercial shares along with investments to the public.
Permanent Inheritance: Same as Private Limited Company
Authorized Capital: Minimum of Rs. 1 lakhs, similar to Pvt Ltd Company
Very simple business structure
Total control over decision making
Easy winding up procedure
Marginal tax rate
Involvement of shareholders
Can attract investment, as well as, the stake is open
Great for a growth outlook as it provides securities such as debt or equity
One Person Company
One member / one shareholder
It is considered a private limited company
No Annual General Meeting (AGM) is required
The nominee must be appointed for the succession
NBFC (Private Limited Company)
Loans to the public
Investment companies and lending institutions offer loans in a convenient manner
Both the RBI and the MCA have the ruling
Directors’ Digital Signature Certificate (DSC)
Company incorporation in Chennai needs Digital Signature Certificate or DSC for short is a physical signature in digital format for the usage to file online certification and tax returns and other legitimacy. To set up a company, first, you need to appoint a director. Check: Appointment of Directors as per Companies Act and various types of Directors. Once you have appointed your directors, you will need to obtain digital signatures.
Check file / name availability for name approval
The most important aspect of your company is determining the name and getting the name for the approval. One may have an idea for a very funky, innovative name, someone in your industry may already have registered the same name for their company. Therefore, it is crucial to do a company name search to avoid any conflicts. This can lead to a lot of legal issues as these companies have registered a trademark in the company name. Therefore, check the availability of the name before registering the name.
Company incorporation in Chennai states that if someone is sure that no one has a name proposal, use the RUN (Reserve Unique Name) e-form to file for name approval. Name filing for approval can be done through the SPICe Forms (INC-32), [Simple Form to Incorporate an Organization], however, it is advisable to use the RUN service and provide the SRN in SPICe forms. For LLPs, MCA has released a special e-Form RUN-LLP.
Two basic things are name recognition and Digital Signature Certificates (DSC) that empower business owners to go to the next level, namely incorporation filing. Incorporation filing for most companies means companies under the Companies Act, 2013. Company incorporation in Chennai states that for these companies, SPICe forms are in usage. SPICe forms facilitate one-day company incorporation for companies under the Companies Act, 2013. SPICe Forms have incorporated the following company registration procedures under Form 1.
Obtaining DIN (Director Identification Number)
Company incorporation in Chennai needs PAN Application [Section 49A of the SPICe Form (INC-32])
TAN Number [Section 49B of the SPICe Form]
For LLPs, the SPICe forms do not apply as they have government by LLP law and the company merger policy is slightly different for these companies. Company incorporation in Chennai states that for LLPs, after the name has got approval by the RUN-LLP, business owners must obtain the Director Identification Number (DIN) or DPIN (Designated Partner Identification Number) assignment through the DIR-3 e-KYC Forms. After collecting the DIN for LLP Incorporation Owners / Directors, fill out the Philip (LLP Incorporation Form) form with the relevant Registrar of Companies (ROC) in the area. In addition, LLP partners must file a partnership agreement by Form 3 within 30 days from the date of the merger.
Company incorporation in Chennai states that corporate offenders have no requirement to serve a prison sentence for procedural, technical or minor offenses under changes to the Companies Act, which were notified Monday. And also the latest amendments coming into effect from Monday allow a certain class of government agencies to have list directly abroad, increasing the range of foreign funding that Indian companies can access. Some 48 sections of the Act have decriminalization and 23 of the remaining 66 compoundable offenses will have resolution through internal sentencing. Finance Minister Nirmala Sitharaman told Parliament that the Companies Act, 2013 had brought the entire penal code under the Act from 134 to 124.
Company incorporation in Chennai states that in addition, companies face the burden of penalties imposed on certain offenses under the Act. The Ministry of Corporate Affairs (MCA) has allowed companies to hold board meetings through video conferencing or other audio-visual channels until the end of this year, but has extended the deadline for independent directors to register with its online data bank to three months.
The relaxation on the need for MCA-sanctioned physical board meetings ended Wednesday in view of the sanctions arising from the epidemic. The new deadline is December 31.
Company incorporation in Chennai is the best consultant in the city which will take care of all registration services.