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Showing posts with the label Entrepreneurs

All About Articles of Association for Indian Companies

Article by Sugandha Nagariya

Incorporation of a company is not as easy as it seems; it requires loads of paper works and preparation of many documents.

The two major documents that are required to be prepared by a company during its incorporation are Memorandum of Association and Articles of Association.
Any small defect in these documents can cause a disaster for your business.

In this article I am going to talk about the Articles of Association and how you can prepare them.

You can also download this article in PDF so that you can read it at your own comfort whenever you want!

LLP vs Private Company in India: Which Should You Go For

Article by Drishti Saigal.
IntroductionWhen you're starting out with a business, there's tons of ways you can go about it.

You can start your business as a sole-propreitorship, a partnership, a Limited Liability Partnership or you can even start a private company.

Now, of these types of businesses, two are very popular - an LLP and a Private Company.

Nowadays, it is very important to decide whether you want to incorporate your business as a partnership or as a private limited company. 

If you start out with a partnership, you can limit your liability towards third-parties by forming an LLP. An LLP is governed under the provisions of the Limited Liability Partnership Act, 2008 whereas partnerships are governed under the Indian Partnership Act, 1932 shall not be applicable to LLPs.

A private company also is a business structure which limits the liabilities of its owners. It is a very lean method of doing business like that of the LLP. 

Plus, with several recent amendments to the Compan…

How to Register a Private limited Company and a One Person Company in India

Article by Drishti Saigal.

Introduction to Private and One Person Companies in India
·Accordingto section 2(68) of the Companies Act, 2013aprivate company means a company which has a minimum paid up share capital of rupees one lakh or such a higheramount as may be prescribed.
·Minimum number of members required to form a private company are 2 and in-case of a One-Person Company, it is one. The number of members cannot exceed 200. However, One Person Company is a special type of private company wherein only one member can form a company.
·You need to have at least two directors, and only one director for a one person company and the maximum can depend upon the Articles of association of company in a private company.
·In case of a private Company whose shares can be issued only among the members, shares are not freely transferable that is, you cannot transfer shares freely like in the case of public companies.
·At the end of the name of the company the word “private ltd” must be used.
·Books o…

How to Register a Limited Liability Partnership (LLP) in India

Article by Aryan Khanna.

Limited Liability Partnership, LLP for short is a legal entity, which is formed and registered under the Limited Liability Partnership Act, 2008 (hereinafter, the “Act”). It is a form of partnership. 

An LLP has its liability limited to the complete extent of its assets; however, the partners are only liable to the extent of the financial contribution in the LLP. 
The Act provides the nature of the partnership, as well as elucidates the mutual rights and obligations of the partners.
In recent times, several entrepreneurs have begun to incorporate their new ventures as LLP’s, this is because of certain salient features that attract potential individuals to incorporate their ventures in this particular form. These Salient Features of a Limited Liability Partnership are-1.They have a perpetual existence like a company. It can continue irrespective of change of the partners. (Section 3(2) of the Act)
2.Under an LLP, if the partnership fails that creditors will not be…