Firm / Company Registration
A Partnership Firm is one of the types of business models which is governed and regulated by the Indian Partnership Act, of 1932. This business structure basically requires two or more individuals to manage and operate a business according to the terms, conditions, regulations, and goals decided in the Partnership Deed. Partnership Deed is considered the Magna Carta of the Partnership Firm and all the details, specifications, roles, and responsibilities of each Partner, profit sharing ratio, nature of the work, etc., are embedded in the Partnership Deed itself.
Benefits of Registration of a partnership firm:
- Decision Making: In a Partnership Firm, decision-making could be faster as there is no concept of passing resolutions.
- Easy to Start
- Raising Funds
- Less Compliances
- Sharing of Profits & Losses
Different Types of Partnership Firms in India
- Registered Partnership
- Unregistered Partnership
A company is a voluntary association of persons formed for the purpose of doing business having a distinct name and limited liability. It is a juristic person having a separate legal entity distinct from the members who constitute it, capable of rights and duties of its own and endowed with the potential of perpetual succession. One of the main advantages of registration is that it offers limited liability protection and hence the promoters are not liable for the liabilities of the business. There is no way of losing personal property.
The Ministry is primarily concerned with the administration of the Companies Act 2013, the Companies Act 1956, the Limited Liability Partnership Act, 2008 & other allied Acts and rules & regulations framed there-under mainly for regulating the functioning of the corporate sector in accordance with the law.
Types of Company
- Private Limited Company
- Limited Company
- OPC (One Person Company)
- LLP (Limited Liability Partnership)
- Charitable Company (Section 8)
- Nidhi Company
Benefits of Incorporation of Company:
- The liability of the company’s members can be limited to the extent they have agreed to contribute towards the capital of the company with reference to the number of shares and/or the amount of guarantee respectively undertaken by them.
- As the company is having an independent personality of its own, its members are not personally liable for any act or omission on the part of the company, unless the law expressly provides otherwise.
- The company being a juristic person, distinct from the members constituting it, can acquire, own, enjoy and alienate property in its own name. As such the property would be that of the company and no member can make any claim upon it so long as the company is a going concern.
- The company being a legal entity can sue and also be sued in its own name.
- The continuity of the company and its functioning is not affected by the death, disability or retirement of any its members. The company continues to exist, irrespective of change in its membership. It is commonly referred to as “perpetual succession”.
- Incorporation of company provides better borrowing facilities as the company can raise large amount, on comparatively easier terms, by issue of debentures, especially those secured by a floating charge or by accepting deposits from the public. Even banking and financial institutions prefer to render financial assistance to incorporated companies.
- The corporate form of business organization affords the opportunity for the professionalization of its management and entrusting the administration of its affairs to persons of professional competence and standing.
- The members of the company equitably share the profit by way of dividends and the company’s assets in the event of its winding up in the proportion of the capital respectively contributed by them.