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PKP Consult - Incorporation of company in India

We have with us wide experience in effectively handling the company registration services for Company incorporation in India where companies can be incorporated as Private Limited Company in India or Public Limited where the company formation process in India being the same.

We support our clients in setting up private limited company in India and joint venture companies in India. We advise our clients on the laws, regulations and statutory compliances for company incorporation in India and also guide our clients on the required governmental approvals for carrying out their business in India.

BUSINESS SET UP - FIRST STEP - ON CLICK OF MOUSE

As one of the biggest reform in the process of setting up a Company in India, Ministry of Corporate Affairs (MCA) vide Notification dated 1st May, 2015, has amended Companies (Incorporation) Rules, 2014 and introduced a new system by virtue of which now the entrepreneur who intent to set up a company in India can do it by way of filing one single new e-form INC-29. The system has been designed in such a way that it will perform various pre-incorporation and post incorporation activities simultaneously which were otherwise to be completed in phased manner in the old system. The faster system of incorporation of the company in India effective from 01.05.2015 will allow the applicant to have the following activities completed in one go.

  • (A)    To have Director Identification Number (DIN)
  • (B)    Name approval of the proposed company
  • (C)     Composite Application for Company Registration.
  • (D)     Filing of particulars of the promoters/directors and Registered Office
  • (E)     Request for Permanent Account Number (PAN).
  • (F)     Application for Tax Deduction Account Number (TAN).
  • (G)     Request for Registration under Labour Welfare Schemes.

The faster system is real time faster than existing system. Now the company can be incorporated within 24 hours with host of other registration and compliances. It is economical and less cumbersome. No need to file bunch of documents again and again.

However, the faster system has following limitations.

  • 1. The applicant can apply for only one name at a time.
  • 2. Only three proposed directors can apply for DIN
  • 3. On rejection of one DIN application , the application of remaining two applicants will also be rejected
  • 4. Two Resubmissions request are allowed to rectify the application filed.
  • 5. Faster system is not available for nonprofit making organization.

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Ways and Types for incorporation of company in India

The entrepreneurial sector is growing like never before, and so are the opportunities for the entrepreneur are getting wider. Prakash K Prakash offers professional services for budding entrepreneurs for setting up and forming a company that suits their needs. We provide counselling service prior to forming the company to find out the best match for the nature of your business. We render business evaluation service and help you to decide and legalize partnerships.

Before starting any business, an entrepreneur should be aware of the facts, procedures & policies needed to set up the business. One can choose from various types like Sole Proprietorship, Partnership, Limited Liability Partnership, Private Limited Company and Public Limited Company.

Let’s see the below-listed details about them:

Also, see the Procedure for Formation of Company in India and Annual Corporate Filings in India

Sole Proprietorship

The most convenient way to set up the business involves no legalities. As the name suggests, its ownership business & requires only the PAN card of the owner.

Advantage- Easy to setup, prompt decision-making leverage, no interference, direct & sole profits, easy to dissolve.

Disadvantage- Owners risk, limitation on the size of the business, liability for all the decisions, term until owners mortality.

Partnership Firms

It is very popular type amongst small setups that are owned and managed by people keeping profit as a focal point. Popular because these set ups are easy to start and run. However, losing its importance as Limited Liability Partnership.

Advantage - Any 2 people can start the firm. A partnership deed is all that one needs to start with.

Disadvantage - Unlimited business liabilities, where personal assets may be attached to the business. Business loss can be linked to personal loss.

Public Limited Company

A company whose liability is limited, requires minimum 7 members ( unlimited maximum members) & share capital of 5 L. It has ability to offer its shares to public, allow to transfer the shares & can freely make or accept deposits from Public. However, there is a limitation on the subscription of the amount of shares. The company can offer call outs/ invitations by selling its shares or accepting fixed deposits.

Advantage - Limited liability but more liquidity for shareholders, individual legal entity, ability to raise huge capital.

Disadvantage - Legal formalities can be time-consuming & costly, restricted control, power dilution.

Private Limited Company

A very popular & most common form of company, with a long-term objective to exist is to form a Pvt Ltd Company. The shares are not available to the public as the Company is owned by the shareholders. It ranges between 2 - 200 people to form a Company and capital worth 1 L.

Advantages - Very limited & calculated liability, easy to collect healthy capital, stable, maintains privacy.

Disadvantages- Public disclosure of Company details.

Setup -We help you obtain DSC( Digital Signature Certificate - an identity of the signer done electronically to file documents online) & DIN (Direct Identification Number- a unique id assigned to all existing Directors of the Company), File the documents and get the Registration Certificate.