Are You an intellectual person with a great business idea? you badly want to pursue this idea and want it to grow in a big business some day? Do you want to monetize and earn large revenues from it someday? Well here i have explained how you can achieve it.
Step 1 :
First step from legal perspective is to determine what you are trying to make. You can form a partnership, or a limited liability partnership or incorporate a private company or a public company.
| Basis | Company | Partnership | Limited Liability Partnership (LLP) |
|---|---|---|---|
| Number of Members/ Partners |
In case of One Person Company – 1; , In case of Private Company– 2 (minimum) and 200 (maximum); andIn case of Public Company– 7 (minimum) and unlimited (maximum) |
Minimum 2 and Maximum 20 | Minimum 2 partners and there is no limitation of maximum number of partners. |
| is a Separate Legal Entity |
YES | NO | YES |
| Perpetual Succession (Uninterrupted Existence) |
Enjoys the benefit of perpetual succession, members may come and go but the company exists. | Exists as per the will of the partners. Does not enjoy perpetual succession. | Enjoys perpetual succession, partners may come and go, but the LLP exists. |
| Cost of Formation |
High | Low | Medium |
Summary
| STEPS | PROCESS | TIMELINES |
|---|---|---|
| Step 1 | Identification of members and directors of the proposed company. | – |
| Step 2 | Obtain Digital Signature Certificate (Class II DSC) of all the proposed subscriber/directors. They shall be digitally signing the incorporation forms. | 2 days |
| Step 3 | Apply for reservation of name of the company in Form INC-1, for approval from the Registrar of Companies. | 1 day |
| Step 4 | Arrange all the requisite documents | 1-2 days |
| Step 5 | Attach the requisite documents with the form INC-32; Fill forms INC-33 (E-MOA) and INC-34 (E-AOA) and file the forms electronically on the MCA portal with the requisite fee. |
The Registrar, after verifying and scrutinising the forms, shall issue the certificate of Incorporation within 48 hours of filing of the forms, subject to its satisfaction. |
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