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To establish a business in India, adherence to a set of fundamental requirements is imperative, ensuring legal compliance and operational integrity. Essentials include selecting directors and shareholders, issuing a prospectus when needed, and following corporate compliance procedures. These prerequisites form the foundational pillars upon which a company’s structure and operations are built.
Particulars | Private Company | Public Company | One Person Company (OPC) | Limited Liability Partnership (LLP) |
Minimum Members | 2 | 7 | 1 | 2 Partners |
Maximum Members | 200 | Unlimited | 1 | No Limit |
Minimum Directors | 2 | 3 | 1 | 2 Designated Partner |
Maximum Directors | 15 | 15 | 15 | NA |
Resident Directors | 1 Mandatory | 1 Mandatory | 1 Mandatory | 1 Designated Partner |
Transfer of Ownership | Ownership can be transferred | Ownership can be transferred | Ownership can be transferred to the nominee in the event of the death of the owner | Ownership can be tra2nsferred |
Subscription of shares | Public subscription is not allowed | Public subscription allowed | Public subscription is not allowed | Public subscription is not allowed |
Issue of Prospectus | Not Mandatory | Mandatory | Not Mandatory | Not Mandatory |
Managerial Remuneration | No limit to the managerial personnel | Shareholders’ approval is required if remuneration payable is above limits | NA | Remuneration is based on the LLP agreement |
Commencement of business/ operations | Declaration to be filed prior to commencement | Declaration to be filed prior to commencement | Declaration to be filed prior to commencement | Immediately after obtaining a certificate of incorporation |
Legal Status | A private Company is a separate legal entity registered under the Companies Act, 2013. The Directors are liable for the default made under the act | A Public Company is a separate legal entity registered under the Companies Act, 2013. The Directors are liable for the default made under the act | OPC is a separate legal entity registered under the Companies Act, 2013. The Directors are liable for the default made under the act. | LLP is a separate legal entity registered under the Limited Liability Partnership Act, 2008. The Designated Partners of LLP are liable for the contraventions under the act |
Governing Act/ Law | Companies Act, 2013 | Companies Act, 2013 | Companies Act, 2013 | Limited Liability Partnership Act, 2008 |
Annual Statutory Filings | Annual statement of accounts and annual returns with Registrar of Company (ROC) | Annual statement of accounts and annual returns with ROC | Annual statement of accounts and annual returns with ROC | Annual statement of insolvency and annual returns with ROC |
Annual Filings and Audit | Information Technology (IT) returns to be filed. Audit mandatory | IT returns to be filed. Audit mandatory | IT returns to be filed. Audit mandatory | IT returns to be filed. Audit mandatory in case turnover exceeds INR 40 lakhs or contributions exceed INR 25 lakhs |
In pursuit of a professional and seamless business setup in India, seeking the guidance of experienced professionals is paramount. Our expertise can provide invaluable clarity and insight, ensuring that your venture not only complies with all legal and regulatory requirements but also thrives in the complex and dynamic Indian business landscape.
For more information or queries, please email us at
[email protected]
Managing Partner
Chandrawat & Partners is a prominent full-service firm dedicated to delivering top-tier professional services to clients both within the domestic and international spheres.
Copyright © Chandrawat & Partners. All Rights Reserved.
Copyright © Chandrawat & Partners. All Rights Reserved.
Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.
Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.
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AFRICA
EUROPE
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