{"id":8941,"date":"2021-05-13T08:39:23","date_gmt":"2021-05-13T08:39:23","guid":{"rendered":"http:\/\/shubhammaloo.com\/?page_id=8941"},"modified":"2021-06-03T06:40:17","modified_gmt":"2021-06-03T06:40:17","slug":"business-setup-services","status":"publish","type":"page","link":"https:\/\/shubhammaloo.com\/?page_id=8941","title":{"rendered":"Business Setup Services"},"content":{"rendered":"\t\t
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BUSINESS SETUP SERVICES<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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BUSINESS SETUP SERVICES<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Whether you are an indian national looking to form a limited liability partnership (LLP) or a limited company,<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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or a foreign national evaluating India entry options, we provide high-quality business setup services to help you realize your dreams. We offer you all the necessary guidance concerning regulatory requirements and the pros and cons of going ahead with various legal structures. As a foreign national, you have an option to go ahead with forming a branch office, liaison office, or a project office.<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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HOW TO START A NEW BUSINESS ?<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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It all starts with brainstorming a business plan in which you mention the details of the business, like what to sell, selection of legal structure, financial projections, feasibility study, location selection, production facilities, promotion, etc. You then go on to build a strategy regarding customer acquisition, marketing, selling, funding, etc. The next is reviewing the legal requirements to start the business, tax liabilities, and determining a legal structure for it. The final step is registering the business, adhering to regulatory requirements, and managing affairs of the business on a day to day basis.\n<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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SMC helps you in each step of the way by providing business setup services making the whole process a lot easier and hassle-free.<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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LEGAL STRUCTURES<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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While there are many types of companies, we have discussed two main types of them that are famous and profitable given today\u2019s market conditions and choice of people:<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Limited liability partnership (LLP)<\/h3>

LLP is a corporate body that is formed and corporated under the LLP act, 2008. One can characterize it as a hybrid of company and partnership, and it provides benefits of both these. An LLP agreement is an agreement between the partners, and the LLP governs the determination of duties and mutual rights within the LLP. The minimum requirements to form an LLP are that there must be at least two partners, and there is no cap on the maximum number of partners. At least one partner should be a resident of India, irrespective of his citizenship. It is also worth mentioning here that one also has an option to form a partnership firm<\/p><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Limited Company<\/h3>

We provide company formation services in India, and it is the most preferred legal structure for various reasons. You have an option to register a private limited company or a public limited company. In either case, your liability will be limited to the number of shares subscribed. It\u2019s the most credible form of business, and various business activities like raising capital and borrowing funds become easy if you are a limited company. SMC handles the task of company registration for you and provides you all the necessary guidance until you incorporate and beyond!\n<\/p><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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LLP vs Private Limited Company<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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LLP vs Private Limited Company, Birds Eye Comparison<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Shubham Maloo & Co is a top CA firm providing services in GST, Bank Audit,aMany Entrepreneurs starting a new business are curious and confused about the\ndifference between a Private Limited Company vs LLP. Both entities offer many\nsimilar features required to run a small to large sized business, while they also differ in certain aspects. In this article I decode compare Private Limited Company vs LLP from the viewpoint of an Entrepreneur starting a new business.\n\nConcurrent Audit, Tax Audit, and Financial Services to the clients in Ahmedabad.\nWe at Shubham Maloo & Co have professional chartered accountants having vast\nknowledge in the same field and years of experience in serving the clients that make us\none of the growth oriented, with the friendly and likable environment to work with.\nShubham Maloo plays a vital role not only in the accounting but also given guidelines to\n\nthe clients in business loans, co-operate consultant and much more<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Registration Process<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The Private Limited Company Registration process and the LLP Registration process are very similar with some differences in the documents and forms being filed for incorporation. The steps for incorporation of a Private Limited Company are<\/h4>

  1. . Obtaining Digital Signature Certificate (DSC) for the proposed Directors<\/p><\/li>

  2. Obtaining Director Identification Number (DIN) for the proposed Directors<\/p><\/li>

  3. Obtaining name approval from MCA and Filing for incorporation.<\/p><\/li><\/ol>

    LLP registration also has a similar process:<\/h4>

    1. Obtaining Digital Signature Certificate (DSC) for the proposed Partners<\/p><\/li>

    2. Obtaining Director Identification Number (DIN) \/ Designated Partner Identification Number (DPIN) for the proposed Partners<\/p><\/li>

    3. Obtaining name approval from MCA<\/p><\/li>

    4. Filing for incorporation. Both Private Limited Company and LLP are registered with the Ministry of Corporate Affairs and are issued a Certificate of Incorporation.<\/p>

      The processing time for incorporation of a private limited company and LLP are also comparable with both entities taking on average about 20 days to incorporate<\/p><\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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      Registration Cost<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      The Government fee for incorporation of a LLP is significantly cheaper when\ncompared to the Government fee for incorporation of a Private Limited Company.\nLLPs have been introduced to meet the needs of small businesses and hence LLP\nenjoy lower government fee for incorporation. Also, the number of documents that have to be printed on Non-Judicial Stamp Paper and Notarized is lesser for LLP registration when compared to that of a Private Limited Company registration.\n<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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      Features<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      Both LLP and Private Limited Company offer many of the same features. LLP and\nPrivate Limited Company are both separate legal entities and have assets and\nliabilities that are separate from that of the promoters. LLP and Private Limited Company are both transferable, though a Private Limited Company offers more flexibility when it comes to transferring or sharing of ownership. LLP and Private Limited Company both have perennial life, unless and otherwise closed by the promoters or a competent authority.\n<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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      LLP is a separate legal entity registered under the LLP Act, 2008. The partners of a LLP are notpersonally liable for the liabilities of the LLP. Partners have limited liability and is liable only to the extent of their contribution to the LLP.<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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      Private Limited Company is a separate legal entity registered under the Companies Act, 2013. The Directors and Shareholders of a Private Limited Company are notpersonally liable for the liabilities of the Company. Shareholders have limited liability and is liable only to the extent of their share capital.<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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      Ownership<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      Private Limited Company offers more flexibility for the promoters when it comes to ownership and ownership sharing. The ownership of a Private Limited Company is determined by its shareholding and a private limited company can have upto 200 shareholders. Further, since the shareholders do not directly participate in the management of the company, there is a clear distinction in a private limited company between the owners of share and the management. Hence, private limited company is advantageous when it comes to ownership and management features.\n<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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      In a LLP, there is not a clear distinction between the owners and management. In a LLP, the LLP Partners hold ownership of the LLP and also hold powers to manage the LLP. Therefore, a Partner in a LLP will be both a owner and a manager, whereas in a Private Limited Company, the shareholders (owners) do not necessarily have to have management powers. A private limited company is recommended for any business that is considering FDI or Employee Stock Options or Equity funding or Venture Capital funding.<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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      Compliance<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      Tax compliances are similar for both private limited company and LLP. However,\nwhen it comes to compliance relating to the Ministry of Corporate Affairs, LLP enjoys significant advantages. A LLP does not have to have its accounts audited if the annual turnover of the LLP is less than Rs. 40 lakhs and the capital contribution is less than Rs. 25 lakhs. A private limited company on the other hand would have to file audited financial statements with the Ministry of Corporate Affairs each year.\n<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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      A Pvt. Ltd. Company is required to pay a Dividend Distribution tax @ approx. 16.50 % at the time of distribution of profits to its shareholders. Such dividend income is tax free in the hands of the shareholders.\n<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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      Taxation structure for LLP is simpler. LLP is subjected only to Income tax. Dividend Distribution is not applicable on LLP. Once profit is declared and tax is paid by LLP, the distributed income is tax free in the hands of the partners. Tax is levied on the firm at the rate of 30%. Minimum Alternate Tax is applicable to both LLP and Pvt. Ltd. Company.<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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      Fines and Penalties<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      The penalty for non-compliance or late filing of documents with the Ministry of Corporate Affairs are most of the times higher for a LLP as a flat fee of Rs.100 per day is levied when the non-compliance continues with no cap on the liability. Therefore, LLPs could incur larger penalty or fines from MCA due to non-compliance. Therefore, it is important for the promoters of a LLP to be aware of the due dates and file the required documents with the registrar on time.<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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      Other Factors<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      Private limited companies have been in existence for longer than LLPs and enjoys widespread recognition in India and the world. Therefore, there are well established processes and procedures for Private Limited Companies. LLPs on the other hand is a recently introduced entity in India. Therefore, some of the rules, regulations and procedures are continuing to evolve. LLPs are also not as recognized in India as a private limited company, since it is a relatively new concept.<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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      Private limited company offers its promoters a better image or standing than that of a LLP. Private limited company also enjoys better access to funding from banks and foreign direct investment.<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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      Foreign Ownership<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
      \n\t\t\t\t
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      \n \n\n
      \n
      \n
      \n \"\" <\/div>\n <\/div>\n
      \n \t\t \t

      LLP- Foreigners are allowed to invest in a LLP only with prior approval of Reserve Bank of India and Foreign Investment Promotion Board (FIPB) approval.\n<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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      \n \n\n
      \n
      \n
      \n \"\" <\/div>\n <\/div>\n
      \n \t\t \t

      Private Limited Company- Foreigners are allowed to invest in a Private Limited\nCompany under the Automatic Approval route in most sectors.\n<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

      \n\t\t\t\t\t\t
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      Existence or Survivability<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
      \n\t\t\t\t
      \n\t\t\t\t\t
      \n \n\n
      \n
      \n
      \n \"\" <\/div>\n <\/div>\n
      \n \t\t \t

      Partnership- Existence of a Partnership business is dependent on the Partners. Could be up for dissolution due to death of a Partner.<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

      \n\t\t\t\t
      \n\t\t\t\t\t
      \n \n\n
      \n
      \n
      \n \"\" <\/div>\n <\/div>\n
      \n \t\t \t

      LLP- Existence of a LLP is not dependent on the Partners. Could be dissolved only voluntarily or by an Order of the Company Law Board.<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

      \n\t\t\t\t
      \n\t\t\t\t\t
      \n \n\n
      \n
      \n
      \n \"\" <\/div>\n <\/div>\n
      \n \t\t \t

      Private Limited Company- Existence of a Private Limited Company is not dependent on the Directors or Shareholders. Could be dissolved only voluntarily or by Regulatory Authorities.<\/p>\n <\/div>\n \n \n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

      BUSINESS SETUP SERVICES BUSINESS SETUP SERVICES Whether you are an indian national looking to form a limited liability partnership (LLP) or a limited company, or a foreign national evaluating India entry options, we provide high-quality business setup services to help you realize your dreams. We offer you all the necessary guidance concerning regulatory requirements and the pros and cons of going ahead with various legal structures. As a foreign national, you have an option to go ahead with forming a branch office, liaison office, or a project office. HOW TO START A NEW BUSINESS ? It all starts with brainstorming a business plan in which you mention the details of the business, like what to sell, selection of legal structure, financial projections, feasibility study, location […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"footnotes":""},"class_list":["post-8941","page","type-page","status-publish","hentry"],"yoast_head":"\nBusiness Setup Services - Shubham Maloo & Co.<\/title>\n<meta name=\"description\" content=\"Whether you are an indian national looking to form a limited liability partnership (LLP) or a limited company,or a foreign national evaluating India entry options, we provide high-quality business setup services to help you realize your dreams. We offer you all the necessary guidance concerning regulatory requirements and the pros and cons of going ahead with various legal structures. As a foreign national, you have an option to go ahead with forming a branch office, liaison office, or a project office.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/shubhammaloo.com\/?page_id=8941\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Business Setup Services - Shubham Maloo & Co.\" \/>\n<meta property=\"og:description\" content=\"Whether you are an indian national looking to form a limited liability partnership (LLP) or a limited company,or a foreign national evaluating India entry options, we provide high-quality business setup services to help you realize your dreams. We offer you all the necessary guidance concerning regulatory requirements and the pros and cons of going ahead with various legal structures. 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