Private Ltd. Company
A Private limited Company is a popular form of business in India. This type of entity is suitable for small and medium scale business. It is governed by the Companies Act, 2013 and the Ministry of Corporate Affairs is the regulatory body for registration. This is a type of company which have a separate legal entity and protect the right of their shareholder and work according to their MOA/AOA.
It has following advantages:
1. Separate Legal Entity
2. Limited Liability
3. Working on Going Concern concept
4. Capacity to sue and be sued
5. Easy Transferability
6. Minimum 2 Director and Subscriber Required
Connect Soul is here to handle all the complicated procedures related to registering your Private Ltd Company while you can conduct your business peacefully
Public Limited Company
A public company is a company which is suitable for medium and large sized businesses who want to raise equity capital from the public. A Public Limited Company offers its shares to the general public and has limited liability. The shares of such companies can be acquired by anyone either through Initial public offer (IPO) or through the stock market.
Features of a Public Limited Company:-
Directors: A minimum of 3 directors are required to start a Public Limited Company (PLC). There is no limit on the maximum number of directors.
Limited Liability: The liability of the shareholders of a PLC is limited to the amount invested by them; they aren’t personally responsible for the loss or debt of the company.
Paid-up capital: A PLC is required to have a minimum paid-up capital of Rs. 5 lakh or a higher amount prescribed under the Act.
Prospectus: Under the Companies Act, 2013, it is mandatory for all the PLCs to issue a prospectus.
Name: All the public limited companies are required to add ‘limited’ after their names.
Advantages of Forming a Public Limited Company
Capital: The shares of a PLC are offered to the general public which improves the capital of the company.
More attention: Since the company is listed on the stock market, mutual funds, hedge funds, and other traders take note of the business of the company.
Spreading Risk: The shares of the company are held by the general public at large which spreads the unsystematic risk amongst the many shareholders of the company.
Growth & Expansion: There is a lot of scope of growth and expansion of a PLC due to less risk. The money raised through shares can be invested in new projects.
Connect Soul is here to handle all the complicated procedures related to registering your Public Ltd Company while you can conduct your business peacefully.
Section 8 Company (NGO)
In India, Section-8 Company is regulated by the Indian Companies Act, 2013 (and the amendments thereof) and the rules & regulations that are made there under and is administered by the Ministry of Corporate Affairs, Government of India through the Offices of Registrar of Companies (‘RoC’).
The Section 8 Company means a Company formed with an object to promote commerce, art, science, sports, research, education, religion, protection of environment, charity or any other object, who intends to apply their income and profits in promoting their objects and prohibits the payment of dividend to its members.
These Companies are similar to a Trust or Society as the Societies and Trusts are registered under the State Government regulations whereas Section 8 Company is registered under the Central Government’s “Ministry of Corporate Affairs (MCA)”.
This, however, has various advantages when it is compared to Trust or Society and it also has higher credibility amongst the donors, Government departments, and other stakeholders. There is no requirement to use the word “Limited” or “Private Limited” as the case may be.
BENEFITS OF SECTION-8
1. No requirement of minimum paid up Capital.
2. Exempted from stamp duty while registering.
3. Tax deductions benefits u/s 12AA and u/s 80G of Income Tax Act to the donors of the company
4. Firms can also become its Members
5. Less procedural Compliance than other entities
Connect Soul is here to handle all the complicated procedures related to registering your Section 8 Company while you can conduct your business peacefully.
Micro Finance Company Registration
Micro Finance Institutions, also known as MFIs, a microfinance institution is an organization that offers financial services to low income populations. This institution generally give loans upto 1 lakh per person.
It has following advantages
1. Same as Private Limited company
2. It can be made private or public
3. There is no any regulatory authority on MFI except MCA
Connect Soul is here to handle all the complicated procedures related to registering your Micro Finance Company while you can conduct your business peacefully.
NBFC Registration
A Non Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013. NBFC or Non-banking Financial Company is the Financial Institution that provides financing and banking services without any bank license.
NBFCs are financial institutions that provide services related to banking without actually meeting the requirement of the legal definition of a bank. They don’t hold a banking license still can provide banking services.
Difference between Bank & NBFCs
A Non-banking Financial Company is eligible to lend and make investments and their activities are that similar to banks, but also there are a few differences as stated below:
Demand deposit: A NBFC is ineligible to accept demand deposits.
Cheque issuance: NBFCs do not form a part of the payment and settlement system and are not allowed to issue cheques to its customers or cheques were drawn on it.
Deposit Insurance: deposit insurance facility and credit guarantee corporation are not available to depositors of NBFCs.
The above-mentioned statements are the major differences between NBFCs and banks. NBFCs are not subject to banking regulations.
There are various NBFC company:
1. Asset Finance Company
2. Loan Company
3. Core Investment company
4. Mortgage guarantee Company
5. Micro Finance Company
6. Infrastructure Finance Company
7. Infrastructure Debt Fund
8. Housing Finance Company
9. Investment Company
10. Core Investment Company
11. Non-Banking Financial Company
Connect Soul is here to handle all the complicated procedures related to registering your NBFC while you can conduct your business peacefully.
One Person Company
The Companies Act, 2013 completely modernized and revolutionized the corporate laws in India by introducing game-changer concepts like – One Person Company (OPC). This allows an entity to be completely flexible like a company and at the same time provides the protection of limited liability that a sole proprietorship lacks.
So, the Companies Act defines an OPC as “a company that only has one person as to its member. Furthermore, members of the company are nothing but subscribers to its memorandum of association, or its shareholders. So, an OPC is effectively a company that has only one shareholder as its member.”
Businesses with only one founder prefer this format the most because of the various privileges it offers.
BENEFITS OF OPC
1. Limited Liability
2. Continuity Existence
3. Fund raising
4. Less Burden
5. Quicker Actions
Connect Soul is here to handle all the complicated procedures related to registering your OPC while you can conduct your business peacefully.
Nidhi Company
Nidhi Company is a company registered under the Companies Act, 2013. A nidhi company is a company having an object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit.
Important provisions of Nidhi Company:-
(i) Nidhi company should be incorporated as a public company as no private company can be a Nidhi Company.
(ii) Every Nidhi Company shall have a minimum paid-up equity share capital of Rs.5, 00,000.
(iii) A Nidhi company can only issue equity shares; no preference shares can be issued.
(iv) The main objectives of Nidhi Company should always be the welfare of its members by cultivating the habit of savings and funds accumulation amongst the members only for their mutual benefits.
(v) Every Nidhi Company shall have the words ‘Nidhi Limited’ at the end or part of its name.
(vi) After the incorporation of a Nidhi Company, one must have at least a minimum of 200 members.
Connect Soul is here to handle all the complicated procedures related to registering your Nidhi Company while you can conduct your business peacefully.
Producer Company
A producer company is a private company which is governed under the provisions of Companies Act, 1956. This type of company can be incorporated with the objectives as stated under the law i.e. production, harvesting, selling etc. of the primary production and doing any activity related thereto. The objections can be read under the Section 581B of the Companies Act, 1956.
A producer company can be incorporated with 10 or more producers and 5 directors with a minimum capital of Rs. 5,00,000/-
It covers any other activity which is ancillary or incidental to the main objectives of the producer company, for the benefit of the producer company. It is done in order to promote mutual assistance amongst the producer members. A producer company is a blend of both- a private limited company and a cooperative society. As it’s a hybrid company it has the elements and benefits of a cooperative enterprise with the regulatory framework of that of the private limited company.
Connect Soul is here to handle all the complicated procedures related to registering your Producer Company while you can conduct your business peacefully.