4. Private Limited Company
4
Requirements
• Directors
• Digital Signature Certificate
• Director Identification Number
• Name of the Company
• Documents related to the
proposed directors of the
company
• Documents related to the
company
Benefits
• Separate Legal Entity
• Limited Liability of Members
• Perpetual Existence
• No Minimum Capital Requirement
• Higher Market Credibility
• Incorporation expenses – Rs. 6000 – Rs. 30,000 + Professional Fees
5. Public Limited Company
5
Requirements
• Minimum 7 shareholders
• Minimum number of 3 directors
• Memorandum ofAssociation and
Article of Association
• At least one director should have a
Digital Signature Certificate
• Prospectus of the Company
• Memorandum ofAssociation and
Article of Association.
• Other mandatory documents
Benefits
• Limited liabilities for the
shareholders of the company
• Perpetual Succession
• Improved capital of the company
• BorrowingCapacity
• Fewer risks
• Better opportunities for growth
and expansion of the company
• Incorporation expenses – Rs. 5000 – Rs. 2,50,000 + Professional Fees
6. Sole Proprietorship
6
Procedure for
Establishing Sole
Proprietorship Business
• Step 1: ObtainAadhar Card
• Step 2: Apply for PAN Card
• Step 3: Open the BankAccount in
the name of Business
• Step 4: Secure Shop and
EstablishmentAct License
• Step 5: Register under GST*
Benefits
• Fairly EasyTo Establish
• Ensures no profit distribution
• Adheres to minimal compliances
• Attract lowerTaxes
• Seamless Decision Making
• Incorporation expenses – Rs. 2000 – Rs. 3,000 + Professional Fees
7. Partnership Firm
7
Procedure for
Establishing Sole
Proprietorship Business
• Step 1: Step 1: Application for
Registration
• Partnership Deed
• Step 2: Choose the legalized name
of the Firm
• Step 3: Certificate of Registration
Benefits
• Easy to Incorporate
• Attracts minimal Compliances
• Allows partners to make quick
decision
• Profits and Loss Ratio is at the
partners’ discretion
• Incorporation expenses – Rs. 2000 – Rs. 4,000 + Professional Fees
8. Limited Liability Partnership
8
Procedure for
Establishing Sole
Proprietorship Business
• Step 1: Step 1: Application for
Registration
• Partnership Deed
• Step 2: Choose the legalized name
of the Firm
• Step 3: Certificate of Registration
Benefits
• Separate Legal Entity
• Limited Liability ofThe Partners
• Better Flexibility
• Low IncorporationCost and
MinimalCompliance
• No Need for Minimum Capital
Contribution
• Perpetual Existence
• Incorporation expenses – Rs. 500 – Rs. 5,000 + Professional Fees
9. One Person Company
9
Procedure for Registering
One Person Company
• Step-1-To Get DSC
• Step-2-To Get DIN
• Step-3-Approval of Name
• Step-4- Incorporation ofOne
Person Company
• Step-5- Obtaining a Certificate of
Incorporation
Benefits
• Easy Incorporation
• Complete Control by the Individual
• Least requirements for
registration
• Greater credibility
• Ease in Funding
• Incorporation expenses – Rs. 2,000 – Rs. 4,000 + Professional Fees
10. Producer Company
10
Pre-incorporation legalities
for incorporation
• At least ten producers to register
the company.
• Minimum 5 and maximum 15
directors
• Maximum 200 members: if the
proposed entity willing to function
as a private limited company
• Other mandatory documents
Benefits
• DepositAcceptance
• Loan against security
• Profit allocation to the members
• No taxes on the agricultural
income
• Loan Facility to Members
•
• Incorporation expenses – Rs. 15,000 – Rs. 18,000 + Professional Fees
11. Section 8 Company
11
Documents Requirement for
Registration
• Digital Signature Certificate
• Memorandum ofAssociation
• Articles of Association
• Passport Size Photographs
• Members’ Id Proof such as Aadhar
Card, Passport,Voter Id
• Details of Director (When the
Members Are Other
Companies/LLPs)
• Address Evidence
• Director Identification Number
Benefits
• Credibility
• Salary
• Transparency in operations
• Grants and subsidies from the
government
• FCRA for foreign funding
• Incorporation expenses – Rs. 12,000 – Rs. 15,000 + Professional Fees
