Setting up a limited company will mean more administration and more paperwork than if you are a sole trader but there are many advantages to being a limited company, not least eliminating and personal financial liability.
When a sole trading business fails then the owner is personally responsible for any debt, which can have a negative effect on your credit rating and ability to obtain personal loans in the future. You could risk becoming personally bankrupt if the debts are too high for your to pay off.
If you set your business up as a limited company you are protected … Read more
Subsidiary company is any company whose interests are held and controlled or held by another company. Paid up equity share capital and preference share capital of the subsidiary company can be used to determine the holding company, subsidiary company relationship between two companies.
What is a Subsidiary Company?
There’s often a lot of confusion regarding the position of the subsidiary company and what it does. A subsidiary company is a company that is either owned or owned in part by another company. The company that owns the subsidiary is known as a parent company or a holding company. It should … Read more
Being register as a company is always turned to be a hectic schedule while accompanying with several rules and guidelines. In India as per New Companies Act, 2013; different companies of different rules as for private limited, public limited, govt. company, semi government company, One Person Company, NGO and many more. Company law for varied companies generally varies that need to be accompanied by the owners or partners before applying with company registration.
Company Registration India acts and laws do not only bring the status of legality but also the level of credibility and reliability in the target market. Companies … Read more
Before registering as a company
Find out more about setting up and running a company, before you decide to register as a company. A company has different legal, financial and record keeping responsibilities compared to other business structures.
As setting up a business is an uphill task, one should follow the required process of company formation carefully. Most of the businessman starts doing business casually without giving importance to the company’s formal name and structure. It seems normal but surely it is a serious offense and cause hovac to your business idea and its future. Therefore, registering your company must … Read more
India is one of the fastest growing economies in the world with healthy resources and a large market base. In the past few years, there is a great boost in foreign direct investment in India (FDI) because of the changed regulatory environment in the past few years. Therefore, it is very easy for foreign nationals to start a business in India.
Sometimes people get often confused in “Indian Company” and “Foreign Company”. If a foreign national incorporates a company in India then it is an Indian Company. But when a foreign company set up a branch office in India then … Read more
Before you begin to set up your company you need to decide what your business will be about. Market research is essential, to know whether your business idea is viable and whether you can make it a success. You can get this information by setting up focus groups and surveys, as well as by analysing data online or pay professionals to do this for you.
Especially important when it comes to gaining finance for your company your business plan is also a great way of analysing your company’s success.
Things to include in your business plan :
… Read more
In India a business organization can take many forms such a LLP (Limited Liability Partnership), Private Limited Company, Public Company etc. On 7th January 2009 with assent of the President the Limited Liability Partnership Act, 2008 came into effect. LLP has been a successful business vehicle since then as it combines the benefits of a partnership with that of a limited liability company, making it a lucrative option for start-ups. It keeps personal wealth of partners safe and on the other hand it helps leverage the benefits of a partnership.
In Limited Liability Partnership a partner is not … Read more
Establishment of subsidiary companies or the wholly-owned subsidiaries, is certainly a very elegant and preferred means for extending one’s businesses to foreign countries of choice. Therefore, the majority of multinational corporations opt for setting up their subsidiary companies in the targeted countries, for the ultimate purpose of capturing market in the destination countries. In ours this webpage, we are offering rich, exclusive, and very profitable information about the subsidiary company formation, particularly in India.
Basic Requirments For Register Subsidiary
1. Indian Resident Director – Local director can be appointed without any equity participation in the subsidiary company and… Read more
A limited company is most popular business models for all sizes of organisations. This is due to the many benefits it provides over other types of legal business structures. Whether you choose to register a commercial company limited by shares or a non-profit company limited by guarantee, there are a number of perks that far surpass those available to the sole trader or contractor working through an umbrella company.
Types of Private Limited Company
Private limited companies can be registered as ‘limited by shares’ or ‘limited by guarantee’, but what’s the difference?
Limited by shares
Used by profit-making enterprises and
… Read more
These days, most people want to start business in India. From foreign nationals to NRIs to Indian residents, many people are looking at investing their money in India. There are two reasons behind this trend. One is because the Indian economy is growing at a fast pace and in the near future it has potential to grow more. The other reason is because India is a diversified country and hence it is the most favoured location for doing business. Being a diversified country, India offers different routes of investment to its people.
The most suitable for of entity for carrying … Read more
When a company registers itself with the registrar of companies, it gets a unique company registration number (CRN). The number is used to identify a company and verify its legal existence as an incorporated entity. The number is a unique combination of 8 numbers or 2 letters followed by 6 numbers. A company is issued with a company registration number (CRN) soon after company formation. The number will be printed on the certificate of incorporation and all the other official documents received from the ROC.
The number describes the type of company and its nature of business. The company registration … Read more
When you decide to start your own company, the first step it to get it registered with the registrar of companies. To do this, you need to get various documents together. You also have to think of a unique company name. In the company incorporation form, you need to at least pen down 5-10 company names that are unique and suit your business. Based on the availability the registrar approves of one name.
Before deciding on a name, you can also conduct a company name search online. There are various websites that offer services where you can check if a … Read more
Popularly called a commercial register, a company register is an official set of documents that it needed by every company to be complaint with the Corporations Act 2001. The set of documents needs to be up to date as the company goes through any kind of changes. The company register is required to be kept at either a registered office or principal place of business.
Every company register comprises of the following statutory registers:
• Register of applications and allotments: This show the composition of shares and shareholders within the company.
• Register of transfers: This records any share transfer … Read more
In India, registering a company is not as easy as it may seem to be. The registrar of companies (ROC) plays a pivotal role in facilitating and promoting a business. It is impossible for a company to conduct business if it has not been issued a certificate from the registrar of companies. No company, under the companies act, 1956, can come into existence without the approval of the ROC. The registrar provides a certificate which acts as a lifelong proof of existence of the company. The ROC office contains data on more than 6 lakh companies that operate in … Read more
Meaning of Corporate Governance:
The system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially takes care of the interests of all the stakeholders in a company i.e. its shareholders, management, customers, suppliers, financers, government and the community.
Corporate governance broadly refers to the mechanisms, processes and relations by which corporations are controlled and directed to achieve their goals with legal compliance and social help.
Governance structures and principles identify the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, regulators, … Read more
To avail the advantages of One Person Company, many of the Corporates are willing to convert their small Private companies into One Person Company (OPC). The conversion will reduce the compliance manifold, this is one of the key reasons of such a conversion.
Which Private Company can convert into OPC:
Any private company other than a Company registered under section 8 of the Companies Act, 2013 (or section 25 of the Companies Act, 1956) having a paid-up capital of less than Rs. 50 Lac and an average turnover of less than Rs. 2 Crore, in the specified period, can convert … Read more