Company Incorporation

A Private Limited Company is a privately held small business entity. The liability of members of a private limited company is limited to the number of shares held by that member. A private limited company is governed by Companies Act,2013. Minimum number of shareholders required to start a private limited company is two while the upper limit of members is 200 in accordance with the Companies Act,2013.

If a private limited company faces financial risk, its shareholders are not liable to sell their individual assets i.e. they have limited liability. There must be minimum two directors and maximum 15 directors for a private limited company and a director must be 18 years above in age. A foreign national can become a director of private limited company India.

It is compulsory to add private limited (pvt ltd) to the name of a private limited company India. Minimum paid up capital amount for a private limited company is Rs. 1 Lakh. A private limited company keeps on existing even in the case of death or bankruptcy of its Members.

A one person company is a company which contains exactly one member.It is a separate legal entity from its promoter and the promoter has limited liability.

Entrepreneurs who are capable of starting a venture on their own can make use of one person company (OPC) in India. In one person company, there is only one shareholder who is an Indian citizen and Indian resident i.e. stayed in India for at least 182 days in the preceding year.

Shareholder nominates another person as a nominee in case of death or incapacity of the shareholder. One person company was introduced in the companies act 2013 to encourage self-employment.You can not incorporate more than one person company or be a nominee of more than one OPC. Rules of OPC company do not permit Non-Banking Financial Institutions.

An affidavit from every subscriber of the memorandum (i.e. members) and first directors, if any, that they have not been convicted of any offence in relation to the formation or management of any company, or have not been found guilty of any fraud or any breach of duty to any company during preceding five years.One Person Company in India is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder.

A firm or company established between two or more partners with the goal of earning profit is called as a Partnership Firm.It is not compulsory to register a partnership firm but there are added advantages if a partnership firm is registered.Partnership deed is the legal document which is created to form a partnership firm.

Indian Partnership Act 1932 is the governing law which regulates the partnership firms in India.As per the 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”. Maximum number of members in a partnership is 10 for a banking business and 20 for other businesses to enter into a partnership firm.

Partnership firms are not separate legal entity while the partners are.A partnership firm can not be debtor or creditor and can not own a property.The property, debit or credit of a partnership firm is actually for the partners in the eyes of law.The manner in which profits or losses are to be shared amongst partners must be explicitly mentioned in the partnership deed to avoid any confusions in the future.Every partner can carry on business on behalf of others.
A partnership firm would be dissolved if the number of partners reduces below 2 in case of death,incapacitation or resignation of a partner.

Nidhi is a company formed to cultivate habit of saving and thrift and mutual benefit of members by lending and borrowing between members of the company. A Nidhi company is a non-banking financial company(NBFC) which is regulated by Reserve bank of India from time to time. However, RBI has excluded the Nidhi companies from the core provisions of RBI act.

Minimum number of members required to make a Nidhi company in India is three.”Nidhi Limited” words are mentioned in the name of the company. Management of a Nidhi company doesn’t have external involvement so it becomes easier to manage a Nidhi Company. Also, investments in a Nidhi Company are secure. They are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company. Reserve Bank of India is empowered to issue directions to Nidhi Companies in matters relating to their deposit acceptance activities. Nidhi Company registration is simple as compared to other types of finance companies like NBFC which require RBI license to start.

Nidhi is a company formed to cultivate habit of saving and thrift and mutual benefit of members by lending and borrowing between members of the company. A Nidhi company is a non-banking financial company(NBFC) which is regulated by Reserve bank of India from time to time. However, RBI has excluded the Nidhi companies from the core provisions of RBI act.

Minimum number of members required to make a Nidhi company in India is three.”Nidhi Limited” words are mentioned in the name of the company. Management of a Nidhi company doesn’t have external involvement so it becomes easier to manage a Nidhi Company. Also, investments in a Nidhi Company are secure. They are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company. Reserve Bank of India is empowered to issue directions to Nidhi Companies in matters relating to their deposit acceptance activities. Nidhi Company registration is simple as compared to other types of finance companies like NBFC which require RBI license to start.