The basic difference between Private limited and Section 8 in terms of their basic definitions, minimum requirements of shareholders, directors and capital for each of these forms of entities are detailed below.
This presentation compares different legal entities for undertaking charitable work in India: societies, trusts, and Section 8 companies. Trusts are the simplest to form but place responsibility on trustees, while societies are more flexible but the governing body has less independence. Section 8 companies offer more independence but are more complex and expensive to incorporate. Overall, a Section 8 company is recommended as the best option since it is perceived as more genuine and trusted by authorities, though trusts are best if keeping costs low is a priority.
The word ‘Business’ means participating in activities which shall give them freedom in the way they go about doing things in an innovative manner.
Ideas may be sprouting in your mind to start with various ideas but before starting a business, you have to register your business as a separate legal entity.
Check out the different types of Business registration In India.
1.introduction , features & formation of copanies (1)A. Pooja Narayan
This document provides an overview of business law and the provisions of the Indian Companies Act of 1956 and 2013. It discusses the objectives of the Companies Act, defines what constitutes a company, outlines the various types of companies based on incorporation, liability, control, ownership, and other factors. It also explains the process of forming a company, which involves promotion, registration, capital raising, and business commencement. The roles and duties of promoters in the formation process are defined. Key sections of the Companies Act regarding classification, formation, memorandum, articles of association, and capital are also summarized.
The document discusses different types of companies under the Companies Act 2013 including one person companies, small companies, and government companies.
A one person company can have only one member and director who must be an Indian citizen. A small company is defined as having a paid up capital of less than Rs. 2 crore and turnover less than Rs. 20 crore.
A government company is one where the central government, state government, or both together hold at least 51% of the paid up capital. It discusses some key differences between public companies, private companies, and one person companies regarding membership, capital, and compliance requirements.
Forms of doing business in India – An Opportunity to achieve DreamsComplianceShip
This Power point Presentation contains the complete information regarding Form of Business available in India. it provide the details of more than 5 form of doing business in india i.e. Proprietorship, Partnership, LLP (Limited Liability Partnership), Societies, Company i.e. One Person Company, Private Limited Company, Public Limited Company
A step by step guide on how to register a startup company in India. Know the documents required, eligibility criteria, benefits of startup india scheme, registration process & more.
The document discusses company registration in India and choosing the appropriate business structure. It describes the main types of business structures in India, including one person companies, limited liability partnerships, private limited companies, and public limited companies. It provides guidance on important factors to consider when selecting a business structure, such as the number of owners, initial investment costs, liability, tax rates, and plans for obtaining investors. Finally, it outlines the four-step process for registering a company in India, which involves obtaining a digital signature certificate, director identification number, registering on the MCA portal, and receiving a certificate of incorporation.
This presentation compares different legal entities for undertaking charitable work in India: societies, trusts, and Section 8 companies. Trusts are the simplest to form but place responsibility on trustees, while societies are more flexible but the governing body has less independence. Section 8 companies offer more independence but are more complex and expensive to incorporate. Overall, a Section 8 company is recommended as the best option since it is perceived as more genuine and trusted by authorities, though trusts are best if keeping costs low is a priority.
The word ‘Business’ means participating in activities which shall give them freedom in the way they go about doing things in an innovative manner.
Ideas may be sprouting in your mind to start with various ideas but before starting a business, you have to register your business as a separate legal entity.
Check out the different types of Business registration In India.
1.introduction , features & formation of copanies (1)A. Pooja Narayan
This document provides an overview of business law and the provisions of the Indian Companies Act of 1956 and 2013. It discusses the objectives of the Companies Act, defines what constitutes a company, outlines the various types of companies based on incorporation, liability, control, ownership, and other factors. It also explains the process of forming a company, which involves promotion, registration, capital raising, and business commencement. The roles and duties of promoters in the formation process are defined. Key sections of the Companies Act regarding classification, formation, memorandum, articles of association, and capital are also summarized.
The document discusses different types of companies under the Companies Act 2013 including one person companies, small companies, and government companies.
A one person company can have only one member and director who must be an Indian citizen. A small company is defined as having a paid up capital of less than Rs. 2 crore and turnover less than Rs. 20 crore.
A government company is one where the central government, state government, or both together hold at least 51% of the paid up capital. It discusses some key differences between public companies, private companies, and one person companies regarding membership, capital, and compliance requirements.
Forms of doing business in India – An Opportunity to achieve DreamsComplianceShip
This Power point Presentation contains the complete information regarding Form of Business available in India. it provide the details of more than 5 form of doing business in india i.e. Proprietorship, Partnership, LLP (Limited Liability Partnership), Societies, Company i.e. One Person Company, Private Limited Company, Public Limited Company
A step by step guide on how to register a startup company in India. Know the documents required, eligibility criteria, benefits of startup india scheme, registration process & more.
The document discusses company registration in India and choosing the appropriate business structure. It describes the main types of business structures in India, including one person companies, limited liability partnerships, private limited companies, and public limited companies. It provides guidance on important factors to consider when selecting a business structure, such as the number of owners, initial investment costs, liability, tax rates, and plans for obtaining investors. Finally, it outlines the four-step process for registering a company in India, which involves obtaining a digital signature certificate, director identification number, registering on the MCA portal, and receiving a certificate of incorporation.
A company is defined as an artificial legal entity created under the Companies Act. It has key characteristics such as being a separate legal entity, having perpetual existence, limited liability for members, and separation of ownership and management.
The document discusses the different types of companies in India according to the Companies Act - One Person Company (OPC), Private Limited Company, and Section 8 company for non-profit activities. Private Limited companies have a maximum of 200 members and 2-15 directors, while OPCs can only have one member but up to 15 directors. Section 8 companies are for charitable goals and cannot pay dividends.
This document provides an overview of company law and secretarial practice in India. It defines a company and outlines its key characteristics such as separate legal identity, limited liability, transferable shares, and perpetual existence. It then classifies companies based on liability, members, control/holding, and other categories. The document also discusses company promotion, registration procedures, memorandum and articles of association, and the differences between private and public limited companies.
The document provides information about accounting for managers, including:
1. It outlines a session plan for an accounting course covering topics like basic accounting concepts, the double entry system, preparing financial statements, and a class test.
2. It discusses different types of business entities like sole proprietorships, partnerships, limited liability partnerships, private and public companies, and one person companies.
3. It provides evaluation criteria for the course, which will be based entirely on an online test.
This document provides definitions and classifications of different types of companies that can be incorporated in India according to the Companies Act of 1956. It discusses private limited companies, public limited companies, unlimited companies, companies limited by guarantee or shares, government companies, foreign companies, and association not-for-profit companies. It also describes the incorporation process and exemptions that apply to government companies registered under the Companies Act.
Types of Companies under Companies Act, 2013 in India.pptxtaxguruedu
The term “company” does not have a purely technical or legal definition. It could be said to signify a grouping of people who share a common object or objects. People may associate themselves for a wide range of goals, including both materialistic and immaterial ones. However, the term “company” is typically only used to refer to groups that have come together for profit-making goals.
This document discusses non-profit companies registered under Section 8 of the Indian Companies Act. It defines a Section 8 company as a non-profit organization registered to promote arts, science, commerce, sports, education, research, social welfare, religion, or other charitable purposes. Key features mentioned include limited liability status, exemption from minimum capital requirements, and tax deductions for donors. The document outlines the steps for registering a Section 8 company, including minimum director and shareholder requirements, name approval, memorandum and articles of association filing, and registration fees. It also discusses grounds for revoking a Section 8 company's charter and associated penalties.
The document discusses the definition and types of companies under Indian law. It defines a company as an artificial person with separate legal identity regulated by the Companies Act. Companies are classified as private limited or public limited, with minimum requirements for each type outlined. The key steps for incorporating a new company in India are also summarized, including registering with various regulatory authorities and filing required forms and documents.
As everyone is already aware, registration of a new company is crucial to the Companies Act of 2013. Depending on what best fits his needs, an individual can register their company under one of three categories: Private Limited, Limited Liability, or One Person Company. What makes company registration crucial? This a query that everyone ought to know! For the sake of authenticity, that is. There are different types of registration company.
This Presentation Is Prepared by Akhilesh Kumar Kanik for his Class related work the subject is Industrial Organisation Management which is taught in the 2nd semester of Master of Engineering in Industrial Engineering and Management at the Department of Mechanical Engineering Ujjain Engineering College Ujjain Madhya Pradesh.
keep enjoying the learning and following this and encourage me to make more effective content for learning and knowledge sharing..
1. The document discusses various types of companies under corporate law in Pakistan including listed vs unlisted companies, public vs private companies, limited by share vs limited by guarantee, public vs single member companies, public companies vs joint ventures, and limited by guarantee vs joint ventures.
2. The key differences between each type of company are explained such as membership requirements, ability to invite public subscription, filing of accounts and reports, and liability of members.
3. Examples are provided for each type of company to illustrate the concepts discussed.
This document discusses different types of legal entities that can be formed when starting a business in India. It describes sole proprietorships, partnerships, limited liability partnerships, one person companies, private limited companies, and public limited companies. Sole proprietorships are the easiest to establish but provide no liability protection. Partnerships and LLPs allow multiple owners but partners have unlimited liability. Private and public limited companies provide liability protection but have more registration and compliance requirements. An OPC allows a single member and is relatively easy to form like a sole proprietorship.
This document discusses different types of businesses and factors to consider when deciding what type to launch. It describes sole proprietorships, partnerships, limited partnerships, corporations, limited liability companies, non-profit organizations, and cooperatives. Sole proprietorships are the simplest, while corporations are more complex. Limited liability companies are now very common for online businesses as they provide liability protection but fewer legal requirements than corporations. The document advises considering business needs, funding sources, and legal structure when choosing a business type to match different situations.
Here are some of the key pre-approvals you may need to obtain depending on the sector your business will operate in:
- Food Service and Lodging Activities (restaurants, cafes, hotels etc.):
Ministry of Health - Health License
Civil Defense Department - Civil Defense Approval
- Managerial Service Activities and Support Services (consulting, accounting, HR etc.):
No pre-approvals needed.
- Manufacturing Activities:
Ministry of Industry, Trade and Supply - Industrial License
Civil Defense Department - Civil Defense Approval (if applicable)
- Wholesale and Retail Trade Activities:
No pre-approvals needed.
- Transportation
Company registration in India provides comprehensive information and counsel on company registration, corporate finance, accounting, and business formation. It is a well-established organization with educated and experienced professionals like accountants, legal advisors, corporate finance advisors, and tax consultants. Under the Companies Act of 1956, a private limited company requires a minimum of two directors and two shareholders while a public company requires a minimum of three directors and seven subscribers. Online registration allows easy and convenient registration of a company name through internet services. Limited liability companies have restrictions including a maximum of 50 shareholders and prohibitions on public deposits or share transfers.
This article compares key aspects of companies and limited liability partnerships (LLPs) as forms of business organization in India. Some differences highlighted are that companies are regulated by the Companies Act while LLPs are regulated by the LLP Act. Companies must have a minimum of 2 members while LLPs require a minimum of 2 designated partners. Tax rates are slightly higher for companies at 32.445% compared to 30.9% for LLPs. Audit of accounts is mandatory for companies with turnover over Rs. 40 lakh but only for LLPs with turnover over Rs. 40 lakh or contributions over Rs. 25 lakh.
Formation and registration of non profit organisationsSachin Deshmukh
Nature-objectives legal procedures formalities and
documentations required for registration. Different types of Non-Profit Organizations: NGOs Trust and Society, its
significance, differences and relationships.
A Non-Governmental Organization, better known as an NGO is essentially a non-profit organisation, that might comprise of groups, individuals or volunteers who work for a charitable cause. In essence, an NGO works for the betterment of society in various ways.
The main types of NGOs you can register as in India are, Trusts, Societies and Section 8 Companies. NGOs are also known as Sangh or Sangam, and all NGOs enjoy several tax exemptions and benefits. Read on to know more about NGO registration in India.
A company is defined as an artificial legal entity created under the Companies Act. It has key characteristics such as being a separate legal entity, having perpetual existence, limited liability for members, and separation of ownership and management.
The document discusses the different types of companies in India according to the Companies Act - One Person Company (OPC), Private Limited Company, and Section 8 company for non-profit activities. Private Limited companies have a maximum of 200 members and 2-15 directors, while OPCs can only have one member but up to 15 directors. Section 8 companies are for charitable goals and cannot pay dividends.
This document provides an overview of company law and secretarial practice in India. It defines a company and outlines its key characteristics such as separate legal identity, limited liability, transferable shares, and perpetual existence. It then classifies companies based on liability, members, control/holding, and other categories. The document also discusses company promotion, registration procedures, memorandum and articles of association, and the differences between private and public limited companies.
The document provides information about accounting for managers, including:
1. It outlines a session plan for an accounting course covering topics like basic accounting concepts, the double entry system, preparing financial statements, and a class test.
2. It discusses different types of business entities like sole proprietorships, partnerships, limited liability partnerships, private and public companies, and one person companies.
3. It provides evaluation criteria for the course, which will be based entirely on an online test.
This document provides definitions and classifications of different types of companies that can be incorporated in India according to the Companies Act of 1956. It discusses private limited companies, public limited companies, unlimited companies, companies limited by guarantee or shares, government companies, foreign companies, and association not-for-profit companies. It also describes the incorporation process and exemptions that apply to government companies registered under the Companies Act.
Types of Companies under Companies Act, 2013 in India.pptxtaxguruedu
The term “company” does not have a purely technical or legal definition. It could be said to signify a grouping of people who share a common object or objects. People may associate themselves for a wide range of goals, including both materialistic and immaterial ones. However, the term “company” is typically only used to refer to groups that have come together for profit-making goals.
This document discusses non-profit companies registered under Section 8 of the Indian Companies Act. It defines a Section 8 company as a non-profit organization registered to promote arts, science, commerce, sports, education, research, social welfare, religion, or other charitable purposes. Key features mentioned include limited liability status, exemption from minimum capital requirements, and tax deductions for donors. The document outlines the steps for registering a Section 8 company, including minimum director and shareholder requirements, name approval, memorandum and articles of association filing, and registration fees. It also discusses grounds for revoking a Section 8 company's charter and associated penalties.
The document discusses the definition and types of companies under Indian law. It defines a company as an artificial person with separate legal identity regulated by the Companies Act. Companies are classified as private limited or public limited, with minimum requirements for each type outlined. The key steps for incorporating a new company in India are also summarized, including registering with various regulatory authorities and filing required forms and documents.
As everyone is already aware, registration of a new company is crucial to the Companies Act of 2013. Depending on what best fits his needs, an individual can register their company under one of three categories: Private Limited, Limited Liability, or One Person Company. What makes company registration crucial? This a query that everyone ought to know! For the sake of authenticity, that is. There are different types of registration company.
This Presentation Is Prepared by Akhilesh Kumar Kanik for his Class related work the subject is Industrial Organisation Management which is taught in the 2nd semester of Master of Engineering in Industrial Engineering and Management at the Department of Mechanical Engineering Ujjain Engineering College Ujjain Madhya Pradesh.
keep enjoying the learning and following this and encourage me to make more effective content for learning and knowledge sharing..
1. The document discusses various types of companies under corporate law in Pakistan including listed vs unlisted companies, public vs private companies, limited by share vs limited by guarantee, public vs single member companies, public companies vs joint ventures, and limited by guarantee vs joint ventures.
2. The key differences between each type of company are explained such as membership requirements, ability to invite public subscription, filing of accounts and reports, and liability of members.
3. Examples are provided for each type of company to illustrate the concepts discussed.
This document discusses different types of legal entities that can be formed when starting a business in India. It describes sole proprietorships, partnerships, limited liability partnerships, one person companies, private limited companies, and public limited companies. Sole proprietorships are the easiest to establish but provide no liability protection. Partnerships and LLPs allow multiple owners but partners have unlimited liability. Private and public limited companies provide liability protection but have more registration and compliance requirements. An OPC allows a single member and is relatively easy to form like a sole proprietorship.
This document discusses different types of businesses and factors to consider when deciding what type to launch. It describes sole proprietorships, partnerships, limited partnerships, corporations, limited liability companies, non-profit organizations, and cooperatives. Sole proprietorships are the simplest, while corporations are more complex. Limited liability companies are now very common for online businesses as they provide liability protection but fewer legal requirements than corporations. The document advises considering business needs, funding sources, and legal structure when choosing a business type to match different situations.
Here are some of the key pre-approvals you may need to obtain depending on the sector your business will operate in:
- Food Service and Lodging Activities (restaurants, cafes, hotels etc.):
Ministry of Health - Health License
Civil Defense Department - Civil Defense Approval
- Managerial Service Activities and Support Services (consulting, accounting, HR etc.):
No pre-approvals needed.
- Manufacturing Activities:
Ministry of Industry, Trade and Supply - Industrial License
Civil Defense Department - Civil Defense Approval (if applicable)
- Wholesale and Retail Trade Activities:
No pre-approvals needed.
- Transportation
Company registration in India provides comprehensive information and counsel on company registration, corporate finance, accounting, and business formation. It is a well-established organization with educated and experienced professionals like accountants, legal advisors, corporate finance advisors, and tax consultants. Under the Companies Act of 1956, a private limited company requires a minimum of two directors and two shareholders while a public company requires a minimum of three directors and seven subscribers. Online registration allows easy and convenient registration of a company name through internet services. Limited liability companies have restrictions including a maximum of 50 shareholders and prohibitions on public deposits or share transfers.
This article compares key aspects of companies and limited liability partnerships (LLPs) as forms of business organization in India. Some differences highlighted are that companies are regulated by the Companies Act while LLPs are regulated by the LLP Act. Companies must have a minimum of 2 members while LLPs require a minimum of 2 designated partners. Tax rates are slightly higher for companies at 32.445% compared to 30.9% for LLPs. Audit of accounts is mandatory for companies with turnover over Rs. 40 lakh but only for LLPs with turnover over Rs. 40 lakh or contributions over Rs. 25 lakh.
Formation and registration of non profit organisationsSachin Deshmukh
Nature-objectives legal procedures formalities and
documentations required for registration. Different types of Non-Profit Organizations: NGOs Trust and Society, its
significance, differences and relationships.
A Non-Governmental Organization, better known as an NGO is essentially a non-profit organisation, that might comprise of groups, individuals or volunteers who work for a charitable cause. In essence, an NGO works for the betterment of society in various ways.
The main types of NGOs you can register as in India are, Trusts, Societies and Section 8 Companies. NGOs are also known as Sangh or Sangam, and all NGOs enjoy several tax exemptions and benefits. Read on to know more about NGO registration in India.
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Difference between a Section 8 Company and a Private Limited Company?
1. Difference between a Section 8 Company
and a Private Limited Company?
The basic difference between Private limited and Section 8 in terms of their
basic definitions, minimum requirements of shareholders, directors and
capital for each of these forms of entities are detailed below.
Definition
Let us understand how private limited and section 8 companies differ in
their basic definition:
What is a Private Limited Company?
A private limited company is a small business entity which is privately held.
This is a type of business entity which limits owner liability to their shares,
limits the number of shareholders to 50, and also restricts the
shareholders from trading of shares publicly. These are generally formed
for trading and business purposes. These are profit making entities.
What is a Section 8 Company?
In India, a non – profit organization which are often known as NGO can be
registered as a Company under Section 8 of the Companies Act,
2013 (worthwhile Section 25 of the Companies Act, 1956) and it can also
be registered as a Trust and a Society. Section 8 Company format of an
NGO is the most popular form of NGO in India. It is, however, easy to
register, run or manage a Section 8 Company in comparison of a Trust and
a Society. This, however, enables the government to register any
association who have charitable objectives such as to promote sports,
commerce, art and culture, education, research etc as a limited company,
without adding of the words ‘pvt. Ltd.’
Minimum Shareholders and Directors Required
Companies Act 2013 has stipulated the minimum number of Directors and
Shareholder for each of these types of companies. Required minimum
number of Directors and Shareholders in Private limited and Section 8
Company are:
2. Private Limited Company – Minimum of 2 shareholders and 2 directors are
required.
Section 8 Company-Minimum of 2 shareholders and 2 directors are
required.
Minimum Capital Contribution
At the time of company registration, the capital contribution is made by
each of the promoters. To ensure that a company has funds to carry on
business activities basic minimum capital contribution amount is fixed by
the government. Minimum capital contribution for Private limited and
Section 8 Company are:
1. Private limited company: Minimum Authorized Share Capital shall be
Rs. 1,00,000 (INR One Lac).
2. Section 8 company: No minimum requirement of capital has been
specified
There is a huge difference between the Private limited and Section 8
Company. Every type of company is useful in its own aspects.
If you want best consultancy in such related matters you can reach at
www.manishanilgupta.com