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Startup Tegistration

Startup Tegistration

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Company registration in Mumbai is a 100% online process . The most popular corporate business structure in India is a private limited company. Registering a private limited company in Mumbai has many advantages over other business structures such as limited liability, permanent succession, acceptance.
 
TYPES OF COMPANIES
 
Mainly, there are 5 types of companies that can be registered when starting a new business:
 
·         Sole proprietorship
·         Partnership firm
·         One man company
·         limited liability partnership
·         private Limited company
 
Sole proprietorship : -
 
A sole proprietorship is a business owned and managed by a sole individual. This unorganized sector is very popular especially among small traders and traders. There is no registration name, proprietorship recognized by other registrations. The proprietor's liability is unlimited and the firm cannot have a continuous existence. It should only be considered ideally by small traders and traders
Important Registration:
·         Sales tax registration
·         Service tax registration
 
Partnership firm : -
 
An ordinary partnership firm equates sole proprietorship for all practical purposes. A partnership firm also requires all registrations required by sole proprietorship firms. Partnership firms can either be registered with the registrar or remain unregistered. The PAN card for the firm is to be obtained and the liability of the partners is unlimited while the firm cannot have continuous existence.
 
Important Registration:
 
·         Sales tax registration
·         Service tax registration
 
One Person Company (OPC) : -
 
OPC is a recently launched improvement on sole proprietorship firm registration. This gives the promoter the invaluable benefit of limited liability and the company's continued existence. The OPC is to be incorporated through the Ministry of Corporate Affairs. An audited annual return is also not required to be submitted at MCA. The company may designate another person as a director without executive powers. The service fee for this service ranges from Rs. 5000 / - to Rs 12000 / -.
 
 Limited Liability Partnership (LLP) : -
 
LLP was introduced in 2008, which is an improvement over the general partnership. This gives the promoters the invaluable benefit of limited liability and the company's continued existence. The company is to be incorporated through the Ministry of Corporate Affairs. An audited annual return is also not required to be submitted at MCA. The service fee for this service ranges from Rs. 6000 / - to Rs. 14000 / -
 
Private Limited company : -
 
It is the most popular legal framework for business and also allows for external funding and employee stock options. More stringent compliance measures should be followed, hence greater reliability. The company is required to appoint an auditor and the audited financial statements are to be submitted annually to the MCA. The company is eligible to issue debentures and convertible debentures. Service charges range from Rs 7,000 / - to Rs.5500 / -.
 
ADVANTAGES OF OPENING A PRIVATE COMPANY IN MUMBAI
 
·        Better Business Reliability and Acceptance
 
The private limited company is the most trusted and accepted business organization in the world of business as its structure is well known to the business community and the public.
 
·        Ease in attracting customers and sellers
 
Private limited company can attract more customers. In addition, corporate customers, vendors and. Agencies prefer working with a private limited company than a partnership or proprietorship.
 
·        Ease of raising funds from investors
 
Private limited company is the best business model to attract investment from angel investors, venture capitalists and private equity investors. Investor communities prefer private limited company funding as compared to LLP.
 
Preferred Business Structure for Investor
 
Investors will always prefer private limited company as the shareholding structure of private limited company is directly linked with equity / preference share investment.
 
·        Ease of attracting employees
 
The talented workforce prefers to work with an organized business setup. It is easy for a private limited company to attract and retain a technically talented workforce with structured employee stock option plans (ESOPs).
 
·        Limited exposure to trade liability
 
A private limited company is a organization which have limited liability. The liability of shareholders is limited to the extent of shares held in the company and expires after paying for the share.
 
Protection of personal property to owners
 
Since owners have limited liability, their personal assets are protected. Business risk is not the owner's liability as a liability of the company.  Shareholders and directors of private limited company are not personally responsible for business

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