Incorporations
Incorporations
Incorporation of Private Limited company
Private Limited Company is a separate legal business entity with limited liability. It is the most popular legal structure with a minimum of two members. It helps to raise fund from external sources such as Banking and Financial Institutions, limits the liabilities of its shareholders to the extent of unpaid shares and best of all, enjoys minimal statutory compliances.
Incorporation of LLP
A Limited Liability Partnership, popularly known as LLP is taxes as partnership firm and combines the advantages of both the Company and Partnership into a single form of organization. Every limited liability partnership shall have at least two designated partners who are individuals and at least one of them shall be a resident in India. It is considered easier to set up, hassle free operations and significantly lower at costs and compliance requirements compared to a Private limited company.
Incorporation of OPC
One Person Company (OPC) is a business entity in which there is only one owner with limited liabilities who can act both as a shareholder as well as the director. The concept of OPC is basically to promote business enterprises that are owned and managed by a single entrepreneur, which came into force after the amendment of Companies Act in 2013. The OPC business helps Start-up Entrepreneurs to easily test their business model, and upon building a marketable product they can easily convert their OPC into Private Limited company/LLP.
Conversion of Partnership to LLP
LLP is a business structure which offers almost all the advantages of a partnership and at the same time mitigates the disadvantages of a traditional Partnership to a large extent. LLP is better than Partnership because there is no limit to the number of partners, it is a body corporate having separate legal entity, the liability of members is limited to the amount of capital contributed and enjoys higher credit worthiness etc.,
Conversion of Pvt Ltd to Public Ltd
Public limited Company is the only corporate form of organization which is allowed to raise funds from general public, thereby widening the shareholder base and spreading risk. Even a closely held Company can operate as a Public Company without diluting promoter’s stake. Banks ‘and financial institutions may be more willing to extend finance to such companies. Public Limited Companies as compared to other business forms enjoy better recognition in the market and bestow confidence in the stakeholder.
