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What is corporate compliance and why is it important?

 

The meaning of compliance is “the activity of conforming to an order,” or “the condition of satisfying principles or guidelines.” In the corporate world, it’s characterized as the most common way of ensuring your organization and workers keep all regulations, guidelines, norms, and moral practices that apply to your association and industry.

Corporate compliance covers both inner approaches and systems, as well as government and state regulations. Implementing compliance helps your organization forestall and identify infringement of rules, which safeguards your association from fines and claims.

The compliance process ought to be continuous. Numerous associations lay out a program to reliably and precisely administer their compliance strategies over the long haul.

What is the reason for a corporate compliance program?

The intention is to safeguard your business. That’s all there is to it. However, the profit from venture could be critical, assisting you with staying away from squander, extortion, misuse, segregation, and different practices that disturb activities and put your organization in danger.

Your corporate compliance program should be coordinated with all compliance endeavors undertaking wide, from the administration of outer guidelines and interior approaches to extensive worker preparing. By ensuring all divisions and staff are cooperating to keep up with norms, you can relieve the gamble of significant disappointments and infringement.

A viable program further develops correspondence among initiative and staff. It ought to incorporate a process for making, refreshing, circulating, and following compliance strategies. All things considered, representatives can’t be considered answerable for rules and guidelines they don’t know exists.

Yet, when they comprehend assumptions, your staff can keep fixed on your association’s more extensive objectives and assist activities with moving along as expected. Also, when workers are appropriately prepared on compliance prerequisites, they are bound to perceive and report unlawful or dishonest movement.

Keeping up with compliance prepares your workers to go about their responsibilities competently, arrive at their vocation objectives, and keep clients cheerful. Thus, your organization can accomplish its objectives and become quicker.

In the sad occasion that your association faces a claim, your corporate say for example Private limited company registration in Bangalore compliance program will help in court.

As one report from Rutgers School of Law made sense of, “An association that has put forth a vigorous attempt to forestall and distinguish infringement of the law by its workers and others representing it will be dealt with less brutally than one that was not interested in following the law.”

Step by step instructions to make an effective corporate compliance program

Not very many organizations can stand to stall on a corporate compliance program. Try not to allow knowing the past to be 20/20 for your association. Have the premonition to make a move today.

Your program ought to be painstakingly arranged and executed, with agreeing preparing projects to ensure work force are knowledgeable in every aspect of compliance.

The following are a couple of steps to lay out or refine your corporate compliance program:

Get your conductorship ready

Your compliance program for Private limited company registration in Hyderabad  won’t run itself. One individual ought to be allocated the obligation of dealing with the program everyday.

Contingent upon the size of your association, you could have one compliance official or a few. In any case, those responsible for the compliance program should have the power to implement the standards and consider staff at all levels responsible.

They likewise need direct admittance to the organization’s administering body, which might incorporate senior administration or the top managerial staff.

Admittance to senior administration and power to implement rules is fundamental when potential compliance issues come up, engaging your officials to rapidly answer.

Be that as it may, correspondence goes the two different ways. It’s significant for the overseeing body to consistently evaluate the adequacy of the corporate compliance program.

Corporate compliance is tied in with cultivating a work environment culture that values honesty and moral conduct.

This beginnings at the top.

For the program to work, your chiefs need to adhere to the guidelines first. They ought to energize moral way of behaving and straightforwardly discuss the significance of compliance.

Organization pioneers ought to support worker input, underlining that they will not be rebuffed for announcing unlawful or deceptive way of behaving.

The Department of Justice made an agenda for assessing corporate compliance programs and propose posing the accompanying inquiries:

  • How have senior pioneers, through their words and activities, supported or beat the sort of wrongdoing being referred to down?
  • What substantial moves have they made to show conductorship in the organization’s compliance and remediation endeavors?
  • How does the organization screen its senior initiative’s way of behaving? How has senior initiative demonstrated appropriate way of behaving to subordinates?

Conduct risk assessments

Corporate compliance is tied in with overseeing risk.

To assemble a compelling project, you want to know what compliance areas represent the most elevated dangers to your association. Whenever you have recognized these areas, you can zero in your assets on tending to them.

Government and state guidelines, as well as industry norms, are continually developing. To stay away from hazard of resistance, conducting standard assessments is significant. The Association of Corporate Counsel (ACC) recommends directing a gamble assessment one time per year.

A conventional assessment process, similar to this one suggested by the ACC, can assist your association with being proactive about forestalling corporate compliance infringement:

Audit results

Recent litigation

Compliance complaints

Employee claims

Industry enforcement trends

Compliance strategies in each risk area

Lay out and keep up with your implicit set of rules, strategies, and principles

Your corporate compliance program needs an obvious set of principles. Why? Since it can assist with characterizing your program’s motivation and set assumptions for conduct.

The general set of principles goes about as an establishment and ought to make sense of the accompanying central issues:

  • Who is liable for dealing with the program?
  • How representatives ought to report wrongdoing
  • Disciplinary measures for abusing of the implicit set of principles

Your corporate strategies ought to expand on top of that establishment by giving rules to explicit areas of compliance. For instance, they might address normal corporate compliance infringement:

Corporate corruption

Bribery

Tax practises

Conflict of interest

Record retention

The list goes on. However, the specific areas you want to address will rely upon your industry.

When risk areas have been distinguished and strategies made, you ought to lay out techniques to assist representatives with completing approaches accurately. Making bit by bit rules makes it simpler to observe systems and distinguish resistance.

Risk areas in specific businesses might require extra norms. For instance, the Foreign Corrupt Practices Act might expect you to save point by point conventions for screening third party business partners.

We Shoplegal are the best consultancy for doing all kinds of company registrations.

 

 

What documents will I receive when setting up my limited Company?

 

 

 

 

It shouldn’t come as an unexpected that while framing an organization, there are many significant archives to procure and submit. Following Companies House acknowledges your application to join another private Ltd organization, you will get numerous crucial reports of consolidation like the articles of affiliation, the fuse testament and notice of relationship among others. Here we have summed up what every one of these records are, and why you will require them.

Declaration of consolidation

When your organization is effectively enlisted, Companies House will give out a testament of fuse. This declaration contains the date of consolidation just as your own company registration number. The Companies House Act 2006 states that at whatever point the testament is given, it is convincing evidence that the organization has been enlisted as needs be. Outsiders like banks, may interest to see a duplicate of your endorsement of joining as confirmation that your organization has been consolidated effectively.

The date of consolidation, as displayed on the authentication, is truth be told your organization’s birthday! It will decide the date of your organization’s first yearly Return, which is by and large a year from the date of consolidation (however you can record prior in the event that you so want).

Notice of affiliation

This is an announcement made by each endorser affirming their mean to arrangement an organization and become an individual from that specific organization. Assuming the organization is a private limited company by shares, each part should be named on the reminder of affiliation and ought to consent to take at least one offer.

Articles of affiliation

This characterizes the principles and guidelines administering the company of an organization. They set out the investors’ freedoms, rules administering the arrangement (assuming any), profit disseminations, expulsion and forces of organization officials, and how executive gatherings should be completed. As a component of your application to enlist a new ltd organization with Companies House, you likewise need to document the articles of affiliation.

Most of organizations just utilize standard “model” articles and should you neglect to supply articles while enlisting your organization, the model articles will be applied naturally.

Acquire each record of fuse right away

There are likewise these other crucial authoritative archives to get while shaping your organization:

Offer declarations

This ensures that on the gave date, the individual whose name is on the authentication is the enrolled proprietor of the offers in an organization. When your organization has been enlisted, share authentications ought to be given to investors in no under two months. For the most part, this is one more errand you should figure out an ideal opportunity for in the early months of a recently settled organization.

Regardless, should you join your organization utilizing Your Company Formation, then, at that point, our framework will of course make share endorsements, saving you a different assignment. It will fill the offer endorsements with data of each offer assignment and you can in any case transfer your organization’s logo to produce marked offer declarations.

Legal registers

The Companies Act 2006 anticipates that every company should protect the legal registers otherwise called legal books recorded beneath:

Individuals’ registers Register of individuals

Directors’ register

Register of directors’ places of residence

Secretaries’ registers

Charges’ registers

Ensuring that your legal register is forward-thinking can be an overwhelming undertaking and simple to be overlooked. By and by, by joining your new private limited organization with Your Company Formation, you will acquire free admittance to our organization secretarial programming. This empowers you to effectively refresh your organization data for changes to official’ subtleties, addresses, or to make additional assignments and offer exchanges. Our brilliant framework will naturally refresh your legal registers for any progressions you make, preparing it quickly to be seen on the online or print.

Benefits of Private limited company

Private Limited Company is an exceptionally old school idea for a secretly held independent venture substance.

Right around 93% of the organizations fused in India are enlisted as Private Limited Companies. Wouldn’t you say there should be a few “Better than I considered” sort of advantages why such countless individuals pick Private Limited Company over such countless different kinds of registrations out there.

If we go attributes insightful, a Private Limited Company is an enlisted organization which limits the responsibility of the proprietor to the commitment made by them for example just upto the worth of offers held by them, it limits the quantity of investors/individuals to 200 and it confines investors from exchanging their portions openly.

Yet, who sees every one of these specialized JARGON..? Not basically when we are going to begin the business..! All we wanted to know at this stage is Why would it be a good idea for me to enroll my business as a Private Limited Company..? Or then again Why would it be advisable for me to join a Private Limited Company..?

Presently let me tell you in a justifiable language…

One might ask, for what reason would it be advisable for me to enroll a Company, when I can maintain my business actually like that (as a limited firm)..???

This is the place where we can assist you with understanding the POSITIVES of enrolling your business as a Private Limited Company.

  1. Individuals

There will be somewhere around 2 individuals to begin a private limited company.

Wouldn’t you say it’s in every case best to have a companion(s) who can say for sure what is happening to you? This individual might assist you with adding more viewpoints to this business thought, assist the thought with growing – most likely the correct way, may offer you precisely what you need – place, individuals, cash or adroitness! what’s more, the truly necessary, this individual could acquire contacts so then, at that point, unquestionably you can reach upto individuals more than in your Contact List – be it for thoughts or for FUNDS – who can say for sure!

Presently there’s a breaking point to it. You can’t have in excess of 200 individuals.

However, who needs that many..? You positively don’t need this a lot of disorder in the underlying stage. Right! In future, if you feel that the organization needs more part, we can do that, yet that is not needed at this point…not at the present time!

Also, in addition to an individual, even a body corporate can turn into an individual from the Private Limited Company.

  1. Limited Liability

The responsibility of every part or investors is limited to the commitment made by them.

Very hard to see yet incredibly integral asset of a Private Limited Company. This can in a real sense turn the table for you!

Allow me to clarify…

At the point when you are a Proprietor you exclusively receive the rewards, benefits and resources of the business and comparatively, you are exclusively answerable for every one of the misfortunes, obligations and liabilities of it. Assume in the event that you have taken any credit for this business and, God Forbid, however on the off chance that you neglect to reimburse the advance or whatever other obligations that you have taken for this business, YOU are at risk to take care of these obligations, independent of the exhibition of the business. For this situation, if the resources of the business are sufficiently not, the loan boss may likewise take your own resources – gems, land, some other effects – to take care of the obligation totally. Fundamentally, you end up plundered!

 

 

Partnership Firm: Types, Deed & Agreements in India

 

 

 

 

The law identifying with organization firm in India is recommended in the Indian Partnership Act of 1932. This Act sets out the freedoms and obligations of the accomplices among themselves and other lawful relations among accomplices and third people, which are coincidental to the arrangement of an organization. Subsequently, the Act sets up the situation of an accomplice just as a partnership firm versus outsiders, in legitimate and legally binding relations emerging out of and throughout the matter of an organization firm. In this article, we take a gander at the different parts of running an organization firm in India exhaustively.

Partnership

A partnership is a connection between people who have consented to share the benefits of a business carried on by all or any of them representing all as expressed in Section 4 of the Indian Partnership Act. Consequently, an organization comprises of three fundamental components.

A partnership should be a consequence of an arrangement between at least two people.

The understanding should be worked to share the benefits acquired from the business.

The business should be controlled by all or any of them addressing the rest.

This load of conditions should exist together before an organization can appear.

Fundamental Elements of a Partnership

Some key components are needed for the arrangement of a Partnership. They are recorded beneath with a short clarification.

An Agreement

A partnership is the consequence of an arrangement between at least two people. It ought to be noticed that this kind of an arrangement can emerge just from an agreement and not from status. This is the reason an organization is recognizable from a Hindu Undivided Family continuing privately-run company. The explanation is that this sort of a partnership is a creation just out of a shared arrangement. Consequently, the idea of a partnership is deliberate and authoritative.

An arrangement from which a partnership relationship emerge might be express. It might likewise be inferred from the Partnership Act done by the accomplices and from a predictable course of direct being followed, showing a common comprehension between them. This understanding might be in oral or recorded as a hard copy.

Sharing Profit of Business

With regards to sharing benefits of the business, two recommendations are to be thought of.

Right off the bat, there should be a business that exists. For this reason, the term ‘business’ would commonly mean each exchange, occupation, and calling. The presence of an organization is pivotal. The thought process of a business is the “obtaining of gains” that prompts the arrangement of an organization. In this way, there can be no organization where there is no expectation to carry on a business and to share the benefits acquired from something very similar. For instance, co-proprietors who share the lease got from a real estate parcel are not viewed as accomplices as a business doesn’t exist. Essentially, no beneficent establishment or club might be known as an partnership. Notwithstanding, a Joint Stock Company might be glided as an organization for non-financial purposes.

Also, there should be an arrangement concerning the sharing of benefits. For instance, An and B purchase specific bundles of cotton which they consent to sell on their shared service and to share the advantages similarly. In such a circumstance, An and B are accomplices in regard to the business they have arranged out. Nonetheless, a consent to share the misfortunes is certainly not a fundamental component that is thought of. Nonetheless, in case of harms, except if concurred in any case, these should be borne in a benefit sharing proportion.

Maintaining the Business

The third necessity for an organization is that the business should be carried on by every one of the accomplices or by at least one of the accomplices representing all. This is the critical rule of the partnership law. A demonstration of one accomplice over the span of the matter of the firm is, truth be told, a demonstration, all things considered. An accomplice carrying on a business is the director just as the specialist for the wide range of various accomplices. Along these lines, it ought to be noticed that the genuine trial of an organization is a common office instead of sharing of benefits. In the event that the component of intuitive office is missing, there will be no partnership. Sharing of advantages is the main Prima Facie proof which can be disproved by more grounded proof. This, this at first sight proof can be countered by demonstrating that there is no shared office.

Distinction among Partnership and Firm

People who have gone into a partnership with each other are called Partners separately. The accomplices might be called on the whole as the name under which the business is continued is known as the name of the Firm. A partnership is simply a theoretical lawful connection between the accomplices. A firm is a substantial item implying the aggregate element for every one of the accomplices. Along these lines, an organization is an imperceptible tie that holds the accomplice together, and a firm is the apparent type of this partnership which is, thusly, bound together.

Types of Partnership

There are two sorts of partnership which are as per the following.

Partnership at will

An organization by will is a partnership where there is no arrangement made by contract between the accomplices for the span of their organization, or the assurance of their partnership.

Particular Partnership

A specific organization is the point at which an individual turns into a join forces with one more person in a specific business endeavor or for a specific undertaking or undertaking, like the development of a street, laying a rail route line, and so forth This kind of a partnership will reach a conclusion on the finishing of the assignment for which it was at first shaped.

Types of Partners

The various classes of accomplices can be inferred dependent on the degree of responsibility in a partnership firm.

Actual Partner

At the point when an accomplice of a partnership firm,

  • has turned into an accomplice by an arrangement;
  • effectively partakes in the lead of the organization.

The accomplice of the firm goes about as a delegate of different accomplices for every one of the demonstrations completed in the standard business lifecycle of the business. In case of a retirement of an accomplice, the individual should give a public notification to exonerate himself of their liabilities for acts completed by different accomplices after his retirement.

Dormant Partner

A Sleeping or a Dormant Partner is an accomplice,

  • who is an accomplice by understanding;
  • who doesn’t effectively partake in the lead of the business.

These accomplices share their benefits and misfortunes and are obligated to outsiders for the business completed by the partnership firm. In any case, they are not needed to give public notification of their retirement from the partnership firm.

 

How to Incorporate a New Company | Step by step Procedure

How to Incorporate a New Company | Step by step Procedure

 

 

 

 

 

The company incorporation in India is presently simple. In 2018, through a series of changes, India jumped into the 100th position in the World Bank’s Ease of Doing Business rankings, bouncing 30 scores. Through the different activities, the Government has diminished the bottlenecks, consolidated structures, and worked on techniques. The Registrar of Companies (ROC) is an office under the Indian Ministry of Corporate Affairs. It for the most part manages the organization of the Companies Act, 2013. The Registrar of Company deals with the organization enlistment measure (otherwise called consolidation) in India.

In this company incorporation, the total revealing and guideline of organizations and their chiefs and investors and furthermore manages government detailing of different issue including the yearly recording of different archives. A foreign company is any organization that is joined outside of India and has a position of business that is working in India, regardless of whether without anyone else or through specialists, actually or through an electronic mode.

Private limited company incorporation

Private Limited Company registration in chennai are reasonable for independent ventures that require enrollment as a private substance. In this kind of organization, a gathering of investors disperses the risk among themselves to help secure their own resources. The absolute capital of such business types is the complete of the multitude of offers held by every individual from the organization.

Procedure / Steps

  1. Obtain Digital Signature Certificate.

As indicated by, The Information Technology Act, 2000 has arrangements for utilization of Digital Signatures on the reports submitted in electronic structure to guarantee the security.

  1. Filing MOA, AOA, SPICe INC-32
  2. Issue company Incorporation certificate

When MOA and AOA are affirmed, you will get fuse endorsement which will incorporate the date of consolidation and PAN number of the organization.

  1. PAN and TAN application

When you get certificate of company incorporation, you will get PAN and TAN application by MCA.

Merits of pvt ltd company

  • The Private limited company has limited liability
  • It has many tax benefits
  • It gains the profession reputation.

One Person Company incorporation

The most up to date section into the various kinds of organization enrollment permitted in India, One person company registration in chennai are extraordinary for independent ventures. Furthermore, it turned into a piece of the Companies Act 2013, to help business visionaries who wish to maintain a business without any assistance. Since a firm kind has separate lawful status, business people get the advantage of risk security without cooperating with any other individual. Moreover, since they include just a single individual, this kind of company registration is not difficult to incorporate and control.

Procedure / Steps

  1. One investor is required. One Director (investor can be director). One Nominee is required and Candidate assent
  2. Apply for DIN
  3. Get computerized signature testament. The DSCs are regularly given with one year legitimacy and long term legitimacy. These are inexhaustible on expiry of the time of beginning issue.

4. To begin one individual organization least capital required is one lakh Indian rupees.

5.One you have picked the name for your business. OPC will be added after the name so your association name       would be unique in relation to different organizations.

  1. Last advance is Obtaining Certificate of Incorporation. It’s an authoritative report which conveys data about your organization. Administration of India gives affirmation of Incorporation.

Merits of OPC

  • One individual organization comprises just a single part who is investor/Directory.
  • Simple to begin the business and funs are effectively accessible.
  • Whole business would be overseen by one individual in particular and make it very simple to deal with all business related issues.

Partnership Company

In such business substances, the treatment of the tasks is taken care of by accomplices, who have consented to their job and offer in benefits. Thus, the capacities, obligations, powers, and number of offers held are on the whole plainly characterized in a verbal agreement known as the Partnership Deed. Moreover, these organizations fall under the domain of the Indian Partnership Act, 1932.

Procedure / Steps

  1. Make decision about the partners.

There are a few choices you should make about the jobs, obligations, and installments in regards to these individuals.

  1. Make decision on partnership

Few varieties of association types that might be accessible in your state. Now, you should check with your state’s business division to perceive what kinds of organizations are accessible.

  1. Decide on partnership name
  2. Register partnership with state
  3. Get an employee ID number
  4. Get license and permits

Advantages of partnership firm registration

  • Power to file case against third parties in the court.
  • Power to claim the set-off

Limited Liability Partnership

Famously called a LLP, Limited Liability Partnerships are additionally another kind of organization in India. Besides, it appreciates a different legitimate status, recognizing individual and business resources, and conceding the business people restricted risk assurance. In such firm sorts, the risk of each accomplice relies upon the quantity of offer capital, giving more assurance than a Sole Proprietorship.

Procedure / Steps

  1. Procure DSC

Each application is recorded online with the MCA, which needs to be marked carefully by the candidates and accomplices of the LLP. Consequently, the DSC with legitimacy of 2 years is obtained for the Designated Partners of the Limited Liability Partnership.

  1. Reserve LLP Name

The new cycle requires the candidates to record the web structure named RUN-LLP (Reserve Unique Name – Limited Liability Partnership).

  1. Apply for the incorporation
  2. Get PAN
  3. Get TAN
  4. LLP Agreement

The subsequent stage will be to draft LLP Agreement cautiously and dependent on the accomplices’ necessities. Step-4 and Step-5 both can be handled at the same time, in any case, this progression would take somewhat more to finish than basically making the application.

Merits of Limited liability Partnership

  • Limited Liability shields the part’s very own resources from the liabilities of the business registration in chennai. LLP’s are a different legitimate element to the individuals.
  • The activity of the organization and circulation of benefits is controlled by composed arrangement between the individuals. This may take into account more noteworthy adaptability in the administration of the business.
  • The LLP is considered to be a lawful individual. It can purchase, lease, rent, own property, utilize staff, go into contracts, and be considered responsible if important.
  • Corporate proprietorship. LLP’s can choose two organizations as individuals from the LLP. In a LTD organization at any rate one chief should be a genuine individual. To know more about company incorporation in chennai, click here.
company registration in chennai- shoplegal

Company registration in Chennai- Guindy

                               

 

                                                         

                                             

 

Company registration in  chennai- guindy is made very simple in this era. An organization is a legal entity formed by a group of people engaged in business activities to get profit. The business range chosen by the company determines the type of entity the business chooses. Company registration in guindy Chennai is the registration of a company under the jurisdiction in which they operate. Depending on the nature of your business, your company may be owned by a single person or group of individuals. If you run an unrecognized business, you are more likely to lose the unique name of your company to someone who has already registered his company. You cannot legally sue the person for this action. Company registration avoids such situations and can also serve as authentic proof of your business.

Types of Companies

Company registration in Chennai states about the types of Companies. They are:

  1. Private limited Company registration
  2. Public limited Company registration
  3. One Person Company registration
  4. Limited Liability Partnership Company registration

Private limited company registration

Private limited company registration means it is incorporated as private company as per the section 2 (68) of the company’s act 2013.More than 2 persons can join and can be treated as single member. The private limited company requires to add private limited. The private limited Company is restricted to transfer the shares as per the pre-emption clause. It has the limited liability structure. Companies offer certain key advantages.

Features of private limited company

Making Money:

Making money out of a small business and being the sole owner or partner is difficult. Under the Companies Act 2013, a company can sell shares to the public and therefore raise money more easily than other types of business structure. There are a number of methods of financing business conducted by the company.

Selling business:

Company registration in Chennai implies that it is much easier to sell a business to a company than any other form of business. The value of the business corporation depends on the business,  so it makes it easier to sell the company.

Good governance:

Companies are governed by the Companies Act, 2013 and must comply with a number of other regulatory policies governed by it, as well as the strict disclosure regulations that they authorize, which allow for better governance for employers.

Multiple relationship with directors:

Company registration in Chennai states that any director in a private limited company can handle multiple relationships. The former private limited company can create a contract with its own director of credit debit or transactions.

Permanent Inheritance:

The Company registration in Chennai is done for a private limited company is constantly inherited. Permanent inheritance means that the company exists even if the member dies or ceases to exist. Changes in management do not affect the identity of the company, the company has the same powers, immunity, estates and assets. The company will exist until the injury in accordance with the provisions of the relevant law.

Public limited Company registration

The public limited company is administered by the ROC. It can be formed with minimum of 7 members and three directors. Mostly the companies that require huge amount of capital as investment prefer to have public limited company. Company registration in Chennai states that the shares of the company is easily transferable. The board of Directors cannot impose the restrictions. They can issue shares subject to regulation of SEBI. The public limited company is said to form under New Companies Act 2013.

Features of Public limited company

Minimum number of shareholders – You need at least 7 members to join a public company.

Company Name – Every public company must have the word “Limited” at the end of the company name.

Liability – The liability of each member of a public company shall not exceed the amount invested in the shares of the member. This limit is non-extendable.

Issuance of Securities – There is no limit on the issuance of securities to the public. The company may issue a bonus issue through an initial public offer (IPO) or through a private placement. Also, the securities must be issued by the Company in a dematerialized format.

One person Company registration

OPC Company registration in Chennai states that One Person Company (OPC) concept is new in India and is very popular abroad, including in Singapore, USA and Europe. Currently, this is a grey area, only time will tell how far it will work in India.

Features of One person Company

  1. OPC Company registration in Chennai states that company may be a One Person Company (OPC), which requires only one person as a subscriber to set up a company and such a company is legally considered a private company.
  2. An individual, if an individual registers a company, is not eligible to join the company of more than one person
  3. The memorandum of the OPC must specify the name of a person (other than the subscriber) who, with his prior written consent, becomes a member of the OPC when the subscriber dies or fails to contract.
  4. An individual nominee for a company memorandum is not eligible to become a nominee for more than one such company.

Limited Liability Partnership

LLP Company registration in Chennai states that Limited liability partnership is a combination of both partnership and corporation. It has the feature of these two forms. As the name implies, the partners in the company have limited liability, meaning that the personal assets of the partners are not used to pay off the company’s debts.

Company registration in Chennai states the Features of LLP

LLP is a body corporate

LLP is a body corporate, formed and it is a legal entity and it is separate from its partners.

Permanent legacy

Unlike a general partnership, a limited liability partnership can continue to exist even after retirement, insanity, bankruptcy, or the death of one or more partners. Furthermore, it enters into contracts and holds property in its name.

Separate the Legal Entity

Like a corporation or organization, it is a separate legal entity. Furthermore, it is fully responsible for its assets. Also, the partners’ liability to the LLP has some limitations on their contribution. Therefore, the creditors of the LLP are not the creditors of the individual partners.

Mutual agency

Another difference between an LLP and a partner company is that a partner’s independent or informal actions do not hold other partners accountable. All partners are agents of the LLP and the actions of one partner do not bind others.