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Showing posts with the label Legal Matters

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…