New Company Registration - Private, LLP or Proprietorship? Should You Register Under Many Ways

A friend of mine who was working with a leading corporate, drawing an awesome monthly salary decided to leave a job for starting his own business. He wanted to become an entrepreneur without knowing the pros and cons of running a business and have not known the reality of unstable/unbalanced lifestyle from a stable one.

With a business idea in a mind, he wanted to launch a start-up soon but was confused what type of business he should incorporate to launch his idea. I am sure, there are many of them like my friend sailing in the same boat, have no idea on how to start and what kind of company should they incorporate. – This post is essentially targeted to those people.

As per the recent survey, it has been witnessed that in the incorporation of legal entities there has been 26% rise in private limited company formation and One Person Company Formation is on rise. Every month there is more than 50,000 new company registration in India and out of the these legal entities, more than half are in 3 states only i.e. Uttar Pradesh, Maharashtra and New Delhi.

Different types of New Company Registration/Business Incorporation

To start with, below mentioned is explanation for new company registration that are done in India:

Sole Proprietorship: The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.

When to incorporate: However, after the introduction of the concept of One Person Company. It is not recommended to form a proprietorship in India.

Limited Liability Partnership: Partnerships when given the feature of limited liability, the LIMITED LIABILITY PARTNERSHIPS came into picture. LLP is a separate legal entity and which can be formed in India by minimum of two persons with a motive of earning profit.

When to incorporate: LLP enjoys the benefits of private limited company and traditional partnerships, therefore, because of increasing compliance in private limited company, it is recommended for start-ups to incorporate LLP if they are not planning to raise investments in future.

Partnership: A business organization in which two or more individuals manage and operate the business. Both owners are equally and personally liable for the debts from the business. Partnerships are easy to form. There is no minimum capital requirement. Only two people are needed to incorporate the partnership.

When to incorporate:Partnerships are basically like proprietorship with an only difference that it involves two persons. If you are two or more persons wants to start the business early, you can register partnerships and later on can convert it into private company.

Private Limited Company: Private Limited company is the most preferred form of business. Private company can be form by two persons. Private company is the ultimate form of business, because in this form, owners can do any type of complex business transaction as they like. For e.g. they can issue ESOPs, raise capital etc.

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When to incorporate: If you are 2 people, willing to start a business, and also plans to raise the funds in future, then private limited company is the best option for you.If you don’t plan to raise funds, but you wants to have a strong foundation, then also private limited company is recommended for your new company registration.

One Person Company: OPC can be regarded as a refined form of proprietorship. Only 1 person is required to form the OPC and enjoys all the benefits of a normal limited liability company.

When to incorporate: If you are a single founder and planning to start a business or your are already running a business as a proprietor, then OPC is actually an ideal choice for a new company registration. Also, owner can anytime convert OPC at ease.

Public Limited Company: Public limited Company is the biggest and the most powerful form of business in India. Public limited companies gives the trust that you are doing something big and also they have noted that the valuation of business increases by 10 to 15 times.

When to incorporate: If you are really planning something big or you have actually running a big business and also you wants to expand it, public limited company is the best option for you.

Below mentioned are the “Company Registration” service providers recommended by SME Joinup which has reached a high specialization in the field of company formation and relevant services.

With the team of highly skilled and experienced professionals who are experience and expertise in solving company registration issues, SME Joinup gets you the best.

 The Back Space – Company registration service provider from Mumbai

The Back Space  founded on the principal of assisting Startups and Small & Medium Enterprises with their non-core business functions. The services help reduce costs and increase operational efficiency. It provides customized solutions which are designed out of a deep industry-based knowledge and support the entire business processes of each and every client.

It is a professionally managed firm where the services help you get your company registration done without any hassles. The mission is to remove day-to-day operational and administrative challenges which entrepreneurs and Small & Medium Enterprises face.

For more news and latest updates from The Back Space, Click here.

Other than accounting and bookkeeping services, The Back Space offers:

• Accounting and bookkeeping
• Compliance
• Corporate advisory
• Company secretarial services

The Back Space client list includes names like:

The reason why SME Joinup recommends The Back Space is because it has vast experience in providing assurance, taxation and advisory services to Indian and Overseas entities. It has a dedicated team for each assignment which include 2 partners, one for execution and one for quality and review purposes. And all services under one roof giving a 360 degree view for any advice given.

Finsmart- Company registration service provider from Pune

Finsmart Solutions is a one stop solution for all your accounting and payroll needs. They are the leading organizations that provide high end company registration services. Since the time they have started off in 2007, they have grown considerably with an excellent track record of providing professional company formation services to the clients of India.

Finsmart Solutions offers a wide range of services apart from company registration, with a variety of allied value added services. The company believe in undertaking the responsibility of your entire company registration procedure.

Apart from company registration, Finsmart offers:

• Outsourced reconciliation services
• Audit and review services
• Accounting and bookkeeping
• Outsourced payroll services

 – Let’s Comply – Company Registration service provider from New Delhi

SME Joinup believes that the company formation services offered by Lets Comply are committed to help entrepreneurs and business owners to start, manage and grow their business by simplifying everything related to financial & taxation related regulatory framework of business so that they focus on innovation and expansion without having concern about compliance, which matters the most.

The company aim to be a partner in the entire business life cycle for all stages of entrepreneurship i.e. Startup, Growth, Acceleration& Progressive Stage to make sure they are compliant at every stage and grow manifold. Along with company registration services it also offers:

• Virtual Intelligence by way of Virtual CFO (vCFO)
• Virtual General Counsel services

It is a team of experienced Chartered Accountants, Company Secretaries, Cost Accountants, Corporate Lawyers Management Graduates, IP Attorneys and Technologists.

Let’s Comply provide excellent confidentiality undertakings as well as high technical firewalls that satisfy its valued clients. Know more in detail about Let’s comply and its offerings clicking here.

  The Universal Legal- Company Registration from Mumbai

The Universal Legal has a team of dedicated Attorneys, Certified Public Accountants have an intricate understanding of the complexities of your legal and accounting needs. The Chugh Firm regularly assists our clients on issues regarding Tax, Immigration, U.S. and India law, Litigation, Corporate Transactions, Family Law, Bankruptcy, Real Estate Transactions etc.

The reason it the firm we believe that the company has potentials is because it cares about the success of their clients. It is committed in providing EVERY client with exceptional company registration services that advance their business needs and add value to their company.

Some firms blindly give every client the same systematic advice. but we believe that The Universal Legal is different. It endeavors to understand the intricacies of our clients’ business and tailor the services to meet client’s specific needs.

It employs talented people from across the globe, each with a specific understanding of the business world. Their team of dedicated attorneys and Certified Public Accountants have an intricate understanding of the complexities of international commerce and it comprehensively advise the clients on every aspect of their business. Their firm regularly assists our clients on issues regarding tax, immigration, United States and India law, litigation, corporate transactions, family law, criminal law, bankruptcy law, real estate law etc.

For the past years, they have worked with clients from all areas of the business world. Through their network of offices across the United States and India, their combined resources and expertise serves as a bridge that enables the clients to seamlessly offer their products and services to customers across the globe.

Trailblazer award:

The Board of Directors of the SABA-SC Public Interest Foundation and the South Asian Bar Association of Southern California presented on their Eight Annual Banquet, held last 3rd of March 2011 at The Kyoto Grand Hotel in Los Angeles, CA. The Trailblazer Award was awarded to Mr. Navneet Chugh for his dedication to the legal community and devotion to the promotion of justice.

Cornerstone Award

A Cornerstone Award was given to Mr. Navneet Chugh, founder of NASABA last June 27-29, 2008 at the 2008 NASABA annual convention which was held in Chicago, Illinois .
The Cornerstone Award is an award granted to individuals who, among other attributes, “serve the legal interests of the South Asian community and the community at large and encourage greater participation by the South Asian community in the legal profession and the government.”

Below are some of the organizations who avail of the time and the firm have enjoyed working with :