Are You an intellectual person with a great business idea? you badly want to pursue this idea and want it to grow in a big business some day? Do you want to monetize and earn large revenues from it someday? Well here i have explained how you can achieve it.
Step 1 :
First step from legal perspective is to determine what you are trying to make. You can form a partnership, or a limited liability partnership or incorporate a private company or a public company.
|Basis||Company||Partnership||Limited Liability Partnership (LLP)|
|Number of Members/ Partners
||In case of One Person Company – 1; ,
In case of Private Company– 2 (minimum) and 200 (maximum); andIn case of Public Company– 7 (minimum) and unlimited (maximum)
|Minimum 2 and Maximum 20||Minimum 2 partners and there is no limitation of maximum number of partners.|
|is a Separate Legal Entity
|Perpetual Succession (Uninterrupted Existence)
||Enjoys the benefit of perpetual succession, members may come and go but the company exists.||Exists as per the will of the partners. Does not enjoy perpetual succession.||Enjoys perpetual succession, partners may come and go, but the LLP exists.|
|Cost of Formation
|Step 1||Identification of members and directors of the proposed company.||–|
|Step 2||Obtain Digital Signature Certificate (Class II DSC) of all the proposed subscriber/directors. They shall be digitally signing the incorporation forms.||2 days|
|Step 3||Apply for reservation of name of the company in Form INC-1, for approval from the Registrar of Companies.||1 day|
|Step 4||Arrange all the requisite documents||1-2 days|
|Step 5||Attach the requisite documents with the form INC-32;
Fill forms INC-33 (E-MOA) and INC-34 (E-AOA) and file the forms electronically on the MCA portal with the requisite fee.
|The Registrar, after verifying and scrutinising the forms, shall issue the certificate of Incorporation within 48 hours of filing of the forms, subject to its satisfaction.|
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