1.One person company Registration

'One Person Company' (OPC) has been introduced by the Companies Act, 2013. OPC will give the young businessman all benefits of a private limited company which categorically means they will have access to credits, bank loans, limited liability, legal protection for business, access to market etc all in the name of a separate legal entity.
OPC is a Private Company for all the legal purposes with only one member. Indian who is also a resident of India is eligible to incorporate an OPC.
An OPC can be formed under any of below categories :

  • Company limited by guarantee
  • Company limited by shares

The member of an OPC has to nominate a nominee with the nominees written consent, and file it with the Registrar of Companies (RoC). This nominee in the event of death or in event of any other incapacity, shall become a member of an OPC. The member of an OPC at any time can change the name of the nominee providing a notice to the RoC in such manner as prescribed. On account of Death of a member, the nominee is automatically entitled for all Assets and liabilities of OPC.

Mandatory conversion to private Limited or Public Limited

  • If paid up share capital of an One Person Company exceeds fifty lakh rupees or its average annual turnover during the relevant period exceeds two crore rupees, it shall cease from the status of One Person Company. It shall be required to convert itself into a private or public limited company within six months of the date on its paid up capital increased beyond Rs.50,00,000/- or last day of the relevant period i.e to say 31st March. during which its average annual turnover exceeds Rs. 2,00,00,000/-

An OPC has certain privileges and exemptions which are not available to private company.

  • Board Meetings and Directors Section149, 152 & 173 of the Act - One Person Company needs to have one director. It can have maximum of 15 directors, In case of a OPC which has only One director, it shall be sufficient compliance if all resolutions required to be passed by such a company at a board meeting are entered in a minute book
  • Holding Annual General Meetings Section 122 of the Companies Act,2013 - Section 122(1) of The Companies Act,2013, provides that the provisions of Section 98,100 to Section111(both inclusive) are not applicable to One Person Company. Therefore, provisions relating to General Meetings, Extra Ordinary General Meeting and Notice Convening to General Meeting are not applicable to One Person Company.
  • Holding

Limitations of One Person Company

    • No person shall be eligible to Start more than a One Person Company or become nominee in more than one such company.
    • No minor shall become member or nominee of the One Person Company or can hold share with beneficial interest.
    • One Person Company cannot be incorporated or converted into a company under section 8 (Non profit Organization)
    • One Person Company cannot carry out Non-Banking Financial Investment activities including investment in securities of anybody corporate.

2.Private Limited Company Registration

  • The private limited company is a proven, successful business model. The Shareholders may operate the business themselves, or hire directors to manage the company on their behalf. Forming a private limited company results in protection of personal assets, access to more resources, financial assistance and greater tax benefits.

    Limited Liability
    The benefit of private limited companies is limited liability. Private limited companies are treated as a single entity, making the company responsible for all debts. If anything happens to the company, its members are not personally affected; members are only liable for unpaid shares. "Officers of the company retain their company salaries, they cannot be made bankrupt and they are free to form a new company. Fraud is the only instance of unprotected liability. If creditors lose money through director fraud, the directors' personal liability is without limit.

    Advantage of Private Limited Company

    Minimum number of directors and shareholders are Two.

    • Limited Liability: In case the company experience financial inability to repay debts or its liability exceeds assets, The liability of the shareholders to contribute to the company is only up to the capital paid up or accepted to be paid.
    • Permanent succession: The Company remains in existence irrespective of the status of Directors or shareholders.
      Process of Incorporation
    • Applying Digital Signature Certificate (DSC) for all the proposed directors
    • Applying Director Identification Number (DIN) is mandatory for all directors.

3.Public Limited Company Registration

    • Public company means a company which is not a private company and doesn't have any prescribed minimum capital limit. A Private company which is subsidiary of a public company shall be deemed to be public company for the goal of this Act, even where such ancillary company continues to be a private company in its articles. A public limited company is a team that has acknowledgment to offer its securities for sale to public, typically through a stock exchange, or sometimes a company whose stock is traded through different market makers.

      • A public limited must have at least seven shareholders.
      • A public company needed to have at least three directors
      • A public company is not authorized to commence business upon the issue of incorporation certificate. It has to obtain commencement of business certificate.
      • It must issue a prospectus or file a statement in lieu of a prospectus before starting business transactions.

      Advantage of public Limited

      • Public limited Company can mobilize more capital as there is no limit to the number of shareholders
      • There is no restriction in the transferability of shares and the public limited company can mobilize funds from public.
      • Borrowing power in case of public limited company is very high.

      Process of Incorporation

      • Applying Digital Signature Certificate (DSC) for all the proposed directors
      • Applying Director Identification Number (DIN) is mandatory for all directors. 
        (Note: Once if we apply DIN for a director that can be used for appointment in any number of companies.)
      • Name availability check:
      • Client can give Six names in order of preference
      • SATHYAM INTERNATIONAL will check the availability of names with Ministry of Corporate Affairs.
      • Discuss with the client for name and object finalization
      • Filing name form with concerned Registrar of Companies (ROC) for their approval.
      • After name approval, SATHYAM INTERNATIONAL will prepare incorporation documents such as MOA, AOA, Affidavits etc.,
      • Discuss with client for finalizing capital, There is no minimum capital limit prescribed for a limited company , We can start a company with a capital of even Rs.10000/-.
      • After Getting Signed documents from the client, We will file incorporation with ROC with prescribed fee.
      • Getting incorporation Certificate.
      • Applying PAN and TAN for the company.

      Documents required
      Proposed Director & Shareholder is a Indian Citizen

      • Copy of Pan self attested - MANDATORY
      • I.D proof any one copy of (Voter id, Passport, Driving License, Aadhar Card) self attested & attested by gazetted officer
      • Proof for address any one Copy of (Bank statement, Electricity bill, telephone bill, mobile bill) self attested & attested by gazetted officer.
        (Note: The above documents should not be older than 2 months.)
      • Latest Passport Size Photo 2 Copies.

      Proposed Director & Shareholder is a foreign national

      • Copy of Passport - MANDATORY (notarized in home country)
      • Copy of Address Proof (notarized in home country)
      • Copy of Proof of nationality (notarized in home country).
        (Note: Apart from notary, the documents to be either apostilled or consularized based on the country.)
      • Passport Size photo 2 Copies.

      Register office documents:

        The proof of evidence of any utility service like Telephone Bill, gas Bill, electricity Bill, etc. depicting the address of the premises in the brand of the partner or record, as the case may be, which is not older than two month.
        • The authorization from the partner or recognized holder of the premises to use the premises by the company as its registered office (No Objection Certificate); and
        • Copy of lease or rental agreement, if the Registered office taken on Rent

4.Section 8(sec 25) Company Registration

A person or an association of persons having a Plan of starting a Non profit organisation with following object can form a Section 8 Company.For promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object; intends to apply its profits, if any, or other income in promoting its objects; and It intends to prohibit the payment of any dividend to its members, the Central Government may, by licence issued in such manner as may be prescribed, and on such conditions as it deems fit, allow that person or association of persons to be registered as a limited company under this section without the addition to its name of the word "Limited", or as the case may be, the words "Private Limited" , and thereupon the Registrar shall, on application, in the prescribed form, register such person or association of persons as a company under this section.
The company registered under this section shall enjoy all the privileges and be subject to all the obligations of limited companies. A firm may be a member of the company registered under this section. A company registered under this section shall not alter the provisions of its memorandum or articles except with the previous approval of the Central Government. A company registered under this section may convert itself into company of any other kind only after complying with such conditions as may be prescribed.

5.Limited Liability Partnership Registration

Limited Liability Partnership (LLP) is a new corporate form to provide an alternative to the traditional partnership which has unlimited liability on Individual Partners, LLP is a hybrid form of partnership, The LLP is a body corporate and a legal entity separate from its partners with the liability of the partners being limited to their agreed contribution which may be of tangible or intangible in nature, Any two or more persons (must have at least one person should be resident in India) associated for carrying on a lawful business with a view to profit, may form a Limited Liability Partnership, The LLP is a suitable vehicle for small enterprises.
No partner would be liable for the independent or unauthorized actions of other partners or their misconduct. The liabilities of the partners who are found to have acted for any fraudulent purpose shall be unlimited for all or any of the debts or other liabilities of the LLP;
The LLP has to maintain annual accounts reflecting true and fair view of its state of affairs. A statement of accounts and solvency must be filed by every LLP with the Registrar every year.
A firm, private company or an unlisted public company has option to convert into LLP. From the date of certificate of registration issued by the Registrar, all tangible (moveable or immoveable) and intangible property vested in the firm or the company, all assets, interests, rights, privileges, liabilities, obligations relating to the firm or the company, and the whole of the undertaking of the firm or the company, shall be transferred to the LLP.

© 2009 Powered By Sathyam International