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Best option for type of company registration

Date: 10 Jul 2016   Posted By: sathish chandrasekaran     Group: Opinion About    Category: Miscellaneous   

I am planning to start my own company. It is based on organizational development and training services. There are three types of registration available serving my needs:
1. Limited Liability Partnership
2. One Person Company
3. Private Limited company

I know my business will take about 2 years to flourish and gain momentum. What is your opinion on this? Which one do you think is most suited form of registration for an OD and Training based company?

Planning to register your own company? Check out with our experts here which would be the most suitable type for your venture.

Author: Swagatika Pattanaik    10 Jul 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

My suggestion is instead of asking here, you please consult a charted accountant.
Because forming a company is not a small things. As how much you will making profit, what will be your expenses, and according to that what should be your minimum requirement that can be only shared and discussed with the charted accountant,and he can suggest you the better things.
Whether your company will be charity based, profit making all these things should be analysed before forming the company to avoid any taxation problem in future.

Author: Makarand Lele    10 Jul 2016      Member Level: Bronze     Points : 1  (Rs 1)    Voting Score: 0

For startup venture LLP form of business would be suitable. The same can always be convertible into private company eventually. LLP is with less compliances than private company and OPC

Author: K Mohan    10 Jul 2016      Member Level: Platinum     Points : 1  (Rs 1)    Voting Score: 0

As far as my suggestion goes, please register your new venture as firm and start the activities and once it picks up and flourish, you can always go for company registration and opt for the right category.

Author: Mahesh    10 Jul 2016      Member Level: Gold     Points : 3  (Rs 3)    Voting Score: 0

You need to understand your business model in order for the company to set up. For example if you want to work solo at first then you can start with the OPC and Proprietorship. That way you don't have to worry about the compliance and other details. Once you start to hire people then you can go ahead and setup LLP or Pvt ltd.

Depending on how quickly you scale, you can setup either LLP or Pvt ltd. It helps to setup Pvt ltd if you are going for bank loan and funding. Also if the business model is established then it definitely helps for starting with pvt ltd. If your company has no recruits initially then you need to instead set up LLP.

Those who are working in freelance way or are working in business of app development usually go for LLP. This is because initial setup is low in case of LLP and it helps financially too.

Each year you have to file ROC for the LLP, Pvt ltd and OPC. So do note that before going with the company stricture. I suggest you to discuss with the CA. They can guide you which model is good for your business.

Author: Kailash Kumar    11 Jul 2016      Member Level: Platinum     Points : 2  (Rs 2)    Voting Score: 0

In the given case, to begin with, it is advisable to form an 'One Person Company' which can be upgraded subsequently after its growth in due course.
A company has to be registered under the Companies Act, 1956. The website of the Ministry of Corporate Affairs , Goverment of India - provides full infornation about the registration procedure etc.
A public company can be formed by seven or more persons and a private company can be formed by two or more persons. One person can also form an 'One Person Company' which is also a type of private company.
As the first step, the applicant has to file Form INC-1 for name availability and within 60 days of the name approval, form INC-2 has to be filed.

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