Proprietorship Registration
Services Covered
Proprietorship Registration
Services Covered
Proprietorship Registration
Services Covered
PAN of Proprietor
Aadhaar of Proprietor
Rental Agreement
Electricity Bill
NOC from Landlord
Partnership Firm Registration
Services Covered
Partnership Firm Registration
Services Covered
Partnership Firm Registration
Services Covered
PAN of Partners
Aadhaar of Partners
Rental Agreement
Electricity Bill
NOC from Landlord
Private Limited Company Registration
Services Covered
Private Limited Registration
Services Covered
Private Limited Company Registration
Services Covered
NOTE:- STATUTORY AUDITOR FEES ARE PAYABLE ON AN ACTUAL BASIS DIRECTLY TO THE INDEPENDENT AUDITOR APPOINTED BY THE BOARD OF DIRECTORS. FILINGHOUSE WILL ONLY BE RESPONSIBLE FOR ACCOUNTING, PREPARATION OF FINANCIAL STATEMENT,S AND FILING OF RETURNS ON BEHALF OF THE COMPANY.
THE PLAN DOES NOT COVER GOVT FEES.
Limited Liability Partnership (LLP) Registration
Services Covered
Limited Liability Partnership (LLP) Registration
Services Covered
Limited Liability Partnership (LLP) Registration
Services Covered
NOTE:- STATUTORY AUDITOR FEES ARE PAYABLE ON AN ACTUAL BASIS DIRECTLY TO THE INDEPENDENT AUDITOR APPOINTED BY THE BOARD OF DIRECTORS. FILINGHOUSE WILL ONLY BE RESPONSIBLE FOR ACCOUNTING, PREPARATION OF FINANCIAL STATEMENT,S AND FILING OF RETURNS ON BEHALF OF THE COMPANY.
THE PLAN DOES NOT COVER GOVT FEES.
One Person Company (OPC) Registration
Services Covered
One Person Company (OPC) Registration
Services Covered
One Person Company (OPC) Registration
Services Covered
NOTE:- STATUTORY AUDITOR FEES ARE PAYABLE ON AN ACTUAL BASIS DIRECTLY TO THE INDEPENDENT AUDITOR APPOINTED BY THE BOARD OF DIRECTORS. FILINGHOUSE WILL ONLY BE RESPONSIBLE FOR ACCOUNTING, PREPARATION OF FINANCIAL STATEMENT,S AND FILING OF RETURNS ON BEHALF OF THE COMPANY.
THE PLAN DOES NOT COVER GOVT FEES.
Professional Tax Registration
Services Covered
Professional tax registration for employers having less than 20 employees
Professional tax is a direct tax levied on persons earning an income by either practicing a profession,employment, calling, or trade. Unlike income tax imposed by the Central Government, professional tax is levied by the government of a state or union territory in India. In the case of salaried and wage earners, the professional tax is liable to be deducted by the Employer from the salary/wages, and the same is to be deposited to the state government. In the case of other classes of individuals, this tax is liable to be paid by the employee himself. The tax calculation and amount collected may vary from one State to another, but it has a maximum limit of Rs. 2500/- per year.
This tax is levied on all kinds of professions, trades, and employment. Profession tax is applicable to the following classes of persons:
An Individual
A Hindu Undivided Family (HUF)
A Company/Firm/Co-operative Society/Association of persons or a body of individuals, whether incorporated or not
The professionals earning an income from salary or other practices such as a lawyer, teachers, doctors, chartered accountants, etc. are required to pay professional tax.
The maximum amount payable per annum towards professional tax is INR 2,500. The professional tax is usually a slab amount based on the gross income of the professional. It is deducted from his income every month
The Commercial Taxes Department of a state/union territory is the nodal agency that collects professional tax on the basis of predetermined tax slabs which vary for each state and union territory. The tax is calculated on the annual taxable income of the individual; however, it can be paid either annually or monthly.
In the case of Salaried and Wage-earners, the Professional Tax is liable to be deducted by the Employer from the Salary/Wages, and the Employer is liable to deposit the same with the state government.
Self-employed persons who carry out their profession or trade on their own and fall in the ambit of profession tax are liable to pay the tax themselves to the state government.
The owner of a business is responsible for deducting professional tax from the salaries of his employees and paying the amount so collected to the appropriate government department. He/she has to furnish a return to the tax department in the prescribed form within the specified time. The return should include proof of tax payment. In case of not enclosing the payment proof, the register will consider the return incomplete and invalid.
Professional Tax Registration is mandatory within 30 days of employing staff in a business or, in the case of professionals, 30 days from the start of the practice.
1. Application for the Registration Certificate should be made to the assessed state tax department within 30 days of employing staff for his business.
2. If the assessee has more than one place of work, then the application should be made separately to each authority with respect to the place of work under the jurisdiction of that authority.
If an employer has employed more than 20 employees, he is required to make the payment within 15 days from the end of the month. However, if an employer has less than 20 employees, he is required to pay quarterly (i.e. by the 15th of next month from the end of the quarter).
The Professional Tax Return is to be filed by all the persons having Professional Tax Registration and the due dates for filing of such returns vary from State to State.
Import Export Code Registration
Services Covered
Import Export Code is a 10-digit unique code allotted to business entities that allow imports and exports. The code is allotted by the Directorate General of Foreign Trade (DGFT) to the applicants.
Udyam Aadhar Registration
Services Covered
As per the notification of MSME dated 26.06.2020, Udyam Registration is the new process of MSME/UDYOG AADHAAR Registration launched by the Ministry of Micro, Small, and Medium Enterprises effective from July 1, 2020.
MSME stands for Micro, Small, and Medium Enterprises. In accordance with the Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006, the enterprises are classified into two divisions. a. Manufacturing enterprises – engaged in the manufacturing or production of goods in any industry b. Service enterprises – engaged in providing or rendering services.
Composite Criteria: Investment and Annual Turnover
| Classification | Micro | Small | Medium |
|---|---|---|---|
| Manufacturing & Service | Investment < Rs 1Cr and turnover < 5Cr | Investment < Rs 10Cr and turnover < 50Cr | Investment < Rs 50Cr and turnover < 250Cr |
Digital Signature
Services Covered
PAN card copy
Aadhaar Copy
Mobile Number
Email ID
NOTE:- STATUTORY AUDITOR FEES ARE PAYABLE ON AN ACTUAL BASIS DIRECTLY TO THE INDEPENDENT AUDITOR APPOINTED BY THE BOARD OF DIRECTORS. FILINGHOUSE WILL ONLY BE RESPONSIBLE FOR ACCOUNTING, PREPARATION OF FINANCIAL STATEMENT,S AND FILING OF RETURNS ON BEHALF OF THE COMPANY.
THE PLAN DOES NOT COVER GOVT FEES.
A sole proprietorship is an unincorporated business that one person owns and manages. As the business and the owner are not legally separate, it is the simplest form of business structure. It is also known as individual entrepreneurship, sole trader, or simply proprietorship.
The business owner, also known as a proprietor or a trader, conducts business using their legal name. They may also choose to do business using another name by registering a trade name with their local authority.
This type of business is the easiest and cheapest form to start. For this reason, it is common among small businesses, freelancers, and other self-employed individuals.
A sole proprietorship begins and ends when the business owner decides, or upon their death.
A sole proprietorship may transform into another, more complex business structure if the business grows substantially.
Establishing a sole proprietorship is generally an easy and inexpensive process, unlike forming a partnership or a corporation.
Compared to other business forms, there is very little paperwork a proprietor needs to file unlike Partnership Firm or Private Limited Company or LLP etc.
As a result, proprietors do not have to wait long before they have permission to carry on a business.
The start-up fees are also low, in line with many government policies that encourage entrepreneurs to take risks and grow the economy by minimizing the friction of starting new businesses.
There are very few government rules and regulations that are specific to proprietors. Sole proprietors must keep proper records, file, and pay taxes on the business income and other personal income sources.
Government rules for larger enterprises and public companies such as financial disclosure require far more administration and do not apply to sole proprietorships.
Proprietors control all aspects of their business, including production, sales, finance, personnel, etc. This degree of freedom is attractive to many entrepreneurs, as the venture’s success also means personal success.
To be successful, proprietors must be “good enough” at the various aspects of their business they have control over.
While some proprietors have employees and delegate some of their authority, they are ultimately accountable for all the decisions and acts of their business.
There is no legal separation between the owner and the business, so the owner gets 100% of the profits. Although all profits go to the owner, taxes are paid once, and proprietors pay taxes individually.
Proprietors must pay individual taxes on the income periodically, for example, as part of the annual individual tax filing. Tax payments may be more frequent, for example, quarterly, depending on the tax liability.
Making regular payments can help a proprietor keep their tax burden from becoming overwhelming and incurring tax penalties. Tax advisors can help proprietors estimate taxes so they can set aside enough of the profits to make mandatory government payments.
There is no legal separation between the owner and the business. Similar to how all profits flow to the owner, all debts and obligations rest with the proprietor.
If the business cannot satisfy its obligations, creditors may pursue the proprietor’s personal assets in order to be repaid.
This accountability is clearly outlined within legal documents signed with lenders, sometimes called a promissory note. A proprietor does not need to provide a personal guarantee to their sole proprietorship, as the two are the same legal entity in the eyes of the law.
Owners put their own resources to bear when going into business for themselves. There are limits to their financial resources and the amount of credit they get when they seek out lending relationships.
Proprietors cannot sell shares, or interest, in their business to raise money.
Putting ideas into reality is risky and can be costly. Keeping a business going can be capital intensive. Some expenses must be incurred before revenue is generated. Any sales on credit, and any cash paid towards expenses, must be financed by working capital. Equipment and other long-use resources required for the business must be rented or financed.
If business requirements exceed the resources and financing available to proprietors, they will need to closely manage their working capital and potentially curtail the acquisition of fixed assets.
A fulsome business plan helps proprietors determine the capital necessary to start up, sustain, and grow the business.
If the owner cannot or does not want to operate the business, it stops. An owner may have a family member or trusted employee who can briefly work in place of the owner in the case of illness or any temporary and unforeseen reason.
Without a separate legal identity, sole proprietorships cannot readily pass any intangible assets from one owner to another. Aside from equipment and fixed assets, the value of the business is inherently tied to the proprietor.
To make any sale attractive, a proprietor must find someone with comparable skills willing to purchase the goodwill the owner has built up. If they cannot find a buyer, the proprietor may pass the business on to a family member or a trusted employee if one exists.
Persons who have entered into a partnership with one another to carry on a business are individually called “Partners“; collectively called as a “Partnership Firm”; and the name under which their business is carried on is called the “Firm Name”
A partnership firm is not a separate legal entity distinct from its members. It is merely a collective name given to the individuals composing it. Hence, unlike a company which has a separate legal entity distinct from its members, a firm cannot possess property or employ servants, neither it can be a debtor or a creditor. It cannot sue or be sued by others.
It is only for the sake of convenience that in commercial usage terms like “firm’s property”, “employee of the firm”, “suit against the firm” and so on are used, but in the eyes of the law that simply means “property of the partners”, “employees of the partners” and “a suit against the partners of that firm”.
It is relevant to state that for the purposes of levy of taxes, a partnership firm is an entity quite distinct from the partners composing it and is assessable separately. But for all other laws, they are treated as the same because a partnership firm does not have a separate legal entity of its own.
Partnership Firms in India are governed by the Indian Partnership Act, 1932. As per Section 4 of the Indian Partnership Act: – “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all” Thus, as per the above definition, there are 5 elements that constitute of a partnership namely: (1) There must be a contract; (2) between two or more persons; (3) who agree to carry on a business; (4) with the object of sharing profits and (5) the business must be carried on by all or any of them acting for all.
The incorporation of a partnership firm is easy as compared to the other forms of business organizations. The partnership firm can be incorporated by drafting the partnership deed and entering into the partnership agreement. Apart from the partnership deed, no other documents are required. It need not even be registered with the Registrar of Firms. A partnership firm can be incorporated and registered at a later date as registration is voluntary and not mandatory.
The partnership firm has to adhere to very few compliances as compared to a company or LLP. The partners do not need a Digital Signature Certificate (DSC), Director Identification Number (DIN), which is required for the company directors or designated partners of an LLP. The partners can introduce any changes in the business easily. They do have legal restrictions on their activities. It is cost-effective, and the registration process is cheaper compared to a company or LLP. The dissolution of the partnership firm is easy and does not involve many legal formalities.
The decision-making process in a partnership firm is quick as there is no difference between ownership and management. All the decisions are taken by the partners together, and they can be implemented immediately. The partners have wide powers and activities which they can perform on behalf of the firm. They can even undertake certain transactions on behalf of the partnership firm without the consent of other partners.
The partners share the profits and losses of the firm equally. They even have the liberty of deciding the profit and loss ratio in the partnership firm. Since the firm’s profits and turnover are dependent on their work, they have a sense of ownership and accountability. Any loss of the firm will be borne by them equally or according to the partnership deed ratio, thus reducing the burden of loss on one person or partner. They are liable jointly and severally for the activities of the firm.
The biggest disadvantage of the partnership firm is having an unlimited liability of the partners. The partners have to bear the loss of the firm out of their personal estate. Whereas in a company or LLP, the shareholders or partners have liability limited to the extent of their shares. The liability created by one partner of the partnership firm is to be borne by all the partners of the firm. If the firm’s assets are insufficient to pay the debt, then the partners will have to pay off the debt from their personal property to the creditors.
The partnership firm does not have perpetual succession, as in the case of a company or LLP. This means that a partnership firm will come to an end upon the death of a partner or insolvency of all the partners except one. It may also be dissolved if a partner gives notice of dissolution of the firm to the other partners. Thus, the partnership firm can come to an end at any time.
The maximum number of partners in a partnership firm is 20. There is a restriction on the number of partners, and hence the capital invested in the firm is also restricted. The capital of the firm is the sum total of the amount invested by each partner. This restricts the firm’s resources, and the partnership firm cannot take up large scale business.
Since the partnership firm does not have perpetual succession and a separate legal entity, it is difficult to raise capital. The firm does not have many options for raising capital and growing its business as compared to a company or LLP. As there are no strict legal compliances, people have less faith in the firm. The accounts of the firm need not be published. Thus, it is difficult to borrow funds from third parties.
A Private Limited Company (PLC) is one of the most common types of legal entityin India. Private Limited Companies are governed by the Companies Act, 2013 and require a minimum of 2 Directors and 2 Shareholders with one of the Directors being an Indian Resident and Indian Citizen.
To register a company in India, the following are minimum requirements:
On many occasions, the startups need to borrow funds and take things on credit. In case of any unforeseen losses and the business not able to repay its borrowed funds, the personal assets of the director’s will not be attached and will not be at risk. Only the investment in the business will be lost but personal assets of the directors are safe. Where in case of Partnership/proprietorship form of business, the partner’s/proprietor’s personal assets would be at risk in case business is not able to repay its debts.
The ownership of the company is represented by shares. A Private Limited company provides limited liability protection to its shareholders. In case of any unforeseen losses to the business, statutory or legal liabilities, the shareholders will not be held responsible. Only the directors of the private limited company are held responsible.
The ownership of a private limited company is represented by shares. Thus the ownership can be transferred or shared with any other Indian or Foreign legal entities or persons. Hence a private limited company facilitates the entrepreneur to easily raise capital for the company and transfer ownership without any obstacles.
As per law, a company is an artificial judicial person established under the Companies Act. A company is a separate legal entity from its Shareholders and Directors. Hence, a company enjoys a wide range of legal capacity to own assets and incur debts, while the Shareholders and the Directors owe no liability towards the company’s Creditors for debts.
A company is the only type of legal entity which can help the promoters raise Equity funding from Angel Investors and Private Equity firms.
A Private Limited Company is a popular business structure. Corporate customers, vendors, and other agencies prefer to deal with a Private Limited Company instead of a partnership or proprietorship business structure.
The ownership of a Private Limited Company is determined by the number of shares held by its shareholders. Shares of the company can be transferred to any other person or legal entity in India and abroad, subject to the Articles Of Association of the Company and shareholders agreement.
A Company is a separate legal entity, so it can acquire, own, and transfer any type of tangible and intangible assets in India.
Perpetual Succession means continuing forever. A Company is to be considered legally active until it is wound up through a legal process. Thus a Company will not get affected by the death or departure of any member of the Company.
All companies which are registered in India as Private Limited companies are required to maintain compliance with various Acts and regulations. Failure to do so can lead to a penalty and/or disqualification of the directors.
A Limited Liability Partnership (LLP) is a body corporate formed and incorporated under the Limited Liability Partnership Act, 2008. It is a legally separated entity from that of its partners.
An LLP is liable to the full extent of its assets but the liability of the partners is limited to their agreed contribution to the LLP. Since the liability of the partners is limited to their agreed contribution in the LLP, it contains elements of both a corporate structure.
There is no personal liability of a partner except in the case of fraud. Moreover, a partner is not responsible or liable for another partner’s misconduct or negligence as there is no joint liability in the case of LLP.
The process of registration of a private limited company and a LLP is very much similar with some differences in the documents and the forms that need to file for incorporation.
LLPs are similar to private limited companies with respect to compliances. Both being separate legal entities have assets and liabilities that are separate from its promoters and partners.
Even though both LLPs and private limited companies are transferrable, a private limited company provides greater flexibility when it comes to transferring or even sharing of ownerships. Unless wound up by the promoters or by the competent authority both LLP and private limited company have a perpetual life.
The startups who want to hyper-grow, seek seed investor or venture capital funding or issue share capital to its employees, for them LLP is not the ideal choice. They can go for registering a private limited company.
In an LLP the designated partners are not responsible to the creditors of the LLP externally. Hence the designated partners are liable to the extent of their contribution to the LLP. But in the case of partnership firm the partners are personally liable to the creditors of the partnership firm. In the LLP the designated partners enjoy the Limited Liability Protections.
LLP and Partnership Firms both must have minimum of 2 partners. maximum number of partners in a partnership firm to be 50, however, there is no upper limit in the number of partners in an LLP. In case the number of partners reduces below 2 in a partnership firm due to any sort of reasons the firm would stand dissolved. Whereas in the case of LLPs if the number of partners reduced below 2 the sole partner can find another new partner without actually dissolving the LLP.
An LLP can shift their registered office anywhere in India as it is registered under the Ministry Of Corporate Affairs of India. The Registrar of firms that register partnership firms are controlled by the state government. Hence it is more difficult to operate and move across India with partnership firm.
An LLP is a separate legal entity and it can enter into a contractual relationship on its own capacity.
In an LLP the designated partners are not responsible to the creditors of the LLP externally. Hence the designated partners are liable to the extent of their contribution to the LLP.
An LLP is a separate legal entity and it is governed by the LLP Act, 2008. The Act allows the LLP to contract with other entities, take legal action, own assets and borrow funds in the name of the LLP itself. It is a major advantage that is not available to a regular partnership firm.
A key benefit of registering an LLP over a Private Limited Company is lesser compliances requirement. It does not have mandatory audit requirement like Private limited companies unless until a certain level of turnover or contribution. Unlike private limited companies, compliances related to board meetings, statutory meetings, etc. do not apply to an LLP.
An LLP requires a minimum of 2 partners but there is no upper limit on the maximum number of partners. Whereas in case of a private limited company there are restrictions on having more than 200 members.
One Person Company (OPC) means a company formed with only one person as a member, unlike the traditional manner of having at least 2 members. To eliminate this drawback and allow a single person to reap the advantages of One Person Company, this company structure was introduced through the Companies Act, 2013. It has only one shareholder who owns 100% stake of the company. To maintain the character of perpetuity, the appointment of Nominee is compulsory, who will take place the owner in case of death or inability to run the company. One Person Company is a type of Private Limited Company.