Concept of Limited Liability

Concept of Limited Liability

The concept of Limited Liability is often misunderstood in the corporate world as no responsibility.

A Company or Limited Liability Partnership (LLP) is an incorporated entity having separate legal identity in the eyes of law. The Shareholders and Partners are the owners of the organisation. The Director or Designated Partner is a representative of the legal entity appointed by the owners to have a human interface with the regulators and all other stakeholders.

Usually in small Company, a shareholder becomes Director and in LLP, a Partner becomes designated partner. In their capacity as owners and representatives, they are different roles to play.

Limited liability means that the personal financial liability of a shareholder or a partner is limited to the extent of a fixed amount that he has agreed to invest in a company or a limited liability partnership. In other words, the investor is not personally liable for the business debts and liabilities of the organisation. In the unfortunate event of winding up of the incorporated business, their financial liability is limited to the unpaid amount of agreed contribution by shares or otherwise. On the contrary, the liability of sole proprietors and partners in general partnership are unlimited and even their personal assets are exposed to pay off the business debts and other business liabilities.

The Directors of the company are the persons liable to run the day to day business of Company and are liable to comply with various legal requirements. In case of LLP, Designated Partner is responsible for the legal compliances. In case of default to comply with any legal requirements they are personally responsible for the same. In their role as a Director or Designated partners, the liability is unlimited and are exposed to penal provisions under the law for the noncompliance of respective regulations.

www.companiesinn.com

Steps for Company Registration in India

Steps for Company Registration in India

Company Registration is a specialized service as which requires professional knowledge of company law and practice.

www.companiesinn.com  has redefined the complicated process of company registration to simple and hassle free steps. With the professional and practical expertise of our team, we have evolved a new method of incorporation with high professional standards at an affordable price.

Below are the simple processes for company registration.

1.      Apply Directors Identification Number (DIN).

DIN is mandatory for all directors of a company. Each proposed directors can obtain this number using his address proof and identity proof.

2.      Apply for Digital Signature Certificate (DSC).

Company registration in India is an online process where all the required documents are being filed online. These electronic documents need to be signed using DSC. For this one of the proposed director need to take a DSC.

3.      Select and Apply the Name for the company.

Select few names for your company. The Company name guidelines in India have been liberalised in par with international standards. Make the application for company name.

4.      Execute Company Registration documents.

Once the company name is approved, execute the company registration documents viz, Memorandum of Association and Articles of Association.

5.      Apply for registration of Company.

Once Memorandum of Association and Articles of Association are executed, the same has to be filed online to respective Registrar of Companies for registration. The Registrar registers these documents and issue certificate of incorporation.

6.      Other registrations.

One the company is registered; it needs to obtain Tax numbers such as Permanent Account Number (PAN), Tax Collection and Deduction Account (TAN) to open a bank account. It also requires Service Tax Registration, Value Added Tax (VAT) Registration depends on the nature of activity for functioning.

CompaniesInn.com LLP

CompaniesInn.com LLP

CompaniesInn.com, the first online incorporation portal in India, has redefined the business incorporation and legal compliance process in India. We ensure the services with high standards at a transparent and pre-defined fee with no hidden charges.

You can incorporate a Company or LLP anywhere in India by placing an order in our website www.companeisnn.com

CompaniesInn Vision & Mission

Simplify Incorporation, Legal, Accounting and Taxation Services and Provide cost-effective, transparent and time bound services to our customers.

Our Services

1.      Company & LLP Incorporation Services

2.      Business Start-up Services

3.      Corporate Legal Stationeries

4.      Accounting, Taxation and Audit Services

5.      Foreign Direct Investment (FDI) Services

6.      Regulatory Compliance & Corporate Secretarial Services

7.      Intellectual Property Protection

www.CompaniesInn.com made ‘Incorporation Simplified’

Are you an Entrepreneur?

Want to Register a Company? Want to know more about an LLP (Limited Liability Partnership)?

Get your start-up registered now online with www.companiesinn.com

We CompaniesInn.com provide Business start-up consultancy and incorporation services to new entrepreneurs and help them to get required registrations for starting a business. We help them to register Limited Company / Limited Liability Partnerships (LLP) across India.

We provide services online through our website www.companiesinn.com and 'IncorporationKiosk' (our offices) in Bangalore , Chennai, Delhi and Mumbai.

Our Vision: Simplify Incorporation, Legal, Accounting and Taxation Services.

Our Mission :Provide cost-effective, transparent and time bound services to our customers

Flipcart, Babyoye and Zipdial are few of notable companies registered by us.

Anyone who wish to know more about the process of registering a new business are welcome to contact us for more information.

Selection of Company Name – Important points

Selection of Company Name – Important points

Selection of Company Name – Important points

The important point to be noted while selecting the company name is that the proposed name should not be undesirable and is identical with or too nearly resembling with the name of a Company / LLP already registered or names approved by ROC or a Registered Trademark or a Trademark for which an application is filed.

While determining whether a proposed name is identical with another, the following shall be disregarded:

1. The words Private, Pvt, Pvt., (P), Limited, Ltd, Ltd., LLP, Limited Liability Partnership
2. The words appearing at the end of the names – company, and company, co., co, corporation, corp, corpn, corp.;
3. The plural version of any of the words appearing in the name
4. The type and case of letters, spacing between letters and punctuation marks
5. Joining words together or separating the words, as this does not make a name distinguishable from a name that uses the similar, separated or joined words. Such as Ram Nath Enterprises Pvt. Ltd. will be considered as similar to Ramnath Enterprises Pvt. Ltd.;
6. The use of a different tense or number of the same word, as this does not distinguish one name from another. Such as, Excellent Industries will be similar to Excellence Industries and similarly Teen Murti Exports Pvt. Ltd. will be to Three Murti Exports Pvt. Ltd.;
7. Using different phonetic spellings or spelling variations, as this does not distinguish one name from another. For example, J.K. Industries limited is existing then J and K ndustries or Jay Kay Industries or J n K Industries or J & K Industries will not be allowed. 
   Similarly if a name contains numeric character like 3, resemblance shall be checked with 'Three' also
8. The addition of an internet related designation, such as .COM, .NET, .EDU, .GOV, ORG, .IN, as this does not make a name distinguishable from another, even where (.) is written as 'dot';
9. The addition of words like New, Modern, Nav, Shri, Sri, Shree, Sree, Om, Jai, Sai, The, etc., as this does not make a name distinguishable from an existing name such as New Bata Shoe Company, Nav Bharat Electronic etc. Similarly, if it is different from the name of the existing company only to the extent of adding the name of the place, the same shall not be allowed. For example, 'Unique Marbles Delhi Limited' cannot be allowed if 'Unique Marbles Limited' is already existing.
   Such names can be allowed if a no objection from the existing company by way of Board resolution is produced / submitted for allowing the proposed name.
10. Different combination of the same words, as this does not make a name distinguishable from an existing name, e.g., if there is a company in existence by the name of "Builders and Contractors Limited" , the name "Contractors and Builders Limited" should not be allowed
11. Exact Hindi translation of the name of an existing company in English especially an existing company with a reputation. For example, Hindustan Steel Industries Ltd. will not be allowed if there exists a company with name 'Hindustan Ispat Udyog Limited'.

Company Registration

Stage I - Pre-registration Process

Basic requirements for registering a limited company are as follows: Requirements / Category Private Public Shareholders / Promoters 2 7 Directors 2 3 Authorised Capital INR 100,000 INR 500,000 Digital Signature 1 1         The proposed Director should have a valid DIN (Director Identification Number) allotted by the Ministry of Corporate Affairs. One of the Directors should have a valid Digital Signature Certificate issued by the Certifying Authorities approved by the Ministry of Corporate Affairs. It may take 3 to 5 working days for obtaining DIN. Digital Signature can be obtained in an hour. State II - Name Availability Company Registration in India starts with filing of an application for Company Name. The chosen name for a company should be unique all over India. Usually in a day or two, concerned ROC approves the name if the applied name is not same or closely similar to the name of an existing company and the proposed name is in accordance with the Guidelines for Name Availability issued by the Ministry of Corporate Affairs (MCA). Stage III - Documentation On getting the company name approved by the office of ROC, the following documents need to be drafted in line with the requirements of Companies Act Memorandum of Association (MOA) Articles of Association (AOA) On finalizing the MOA and AOA, necessary stamp duty needs to be paid and the same should be subscribed/ signed (by own hand and signature) by promoters (first shareholders) after writing his name, fathers' name, residential address and occupation. A registered company can subscribe these documents though a representative authorised by a resolution / specific power of attorney by the Company. State IV - Filing and Registration After execution of MOA and AOA, the same has to be field with the with ROC along with the following forms through MCA Portal: Form 1 (Declaration) Form 32 (Details of Directors) Form 18 (Details of Registered Office of the company). The office ROC will scrutinize the incorporation documents. If the documents are found in order, the Company will be registered and the Certificate of Incorporation will be issued by the Registrar. Private Company can start commercial operations immediately after obtaining the Certificate of Incorporation. The Certificate of Commencement of Business has to be obtained by a Public Company before commencing any commercial activity.

Company Registration

Company Registration

The process of registration of Companies can be divided in to the following stages: Stage I - Pre-registration process Stage II - Name Availability State III - Documentation State IV - Filing and Registration

Types of Companies in India

Types of Companies in India

Private Companies A company formed by minimum two persons as shareholders having the following features: Name of the company ends with the words 'Private Limited' Minimum paid up capital INR 100000 Minimum two Directors Maximum number of members is limited to 50 Restriction for transfer of shares Prohibits invitation to the public to subscribe shares of the company Prohibits acceptance of deposit from the public. Public company A company which is not a private company. The minimum number of shareholders ands directors required for registering a Public Company is 7 and 3 respectively. Subject to compliance of the Companies Act, there is no restriction as to number of members, issue and transfer of shares and acceptance of deposits. Non Profit Organizations A company registered with the following features: Promotion of commerce, art, science, religion, charity Prohibits distribution of profit / income among members Registered with limited liability without addition of Limited / Private Limited to its name. More information regarding Company Registration Stages

company registration in india

Forms of Business in India

Basic business structures available in India are Proprietorship, Partnership and Limited Company. Comparing to other forms of business, a Limited Company has various advantages such as separate legal entity, limited liability of shareholders, perpetual succession and may more. To know more, please refer to CompaniesInn Company Registration Guide. Types of Companies available for Registration: Private Company Public Companies Non Profit Organizations (Generally called as Sec.25 Company) More information regarding Types of Companie

how to register a company in india

Company Registration

Company registration in India is regulated by the Companies Act, 1956 and is administered by the Ministry of Corporate Affairs (MCA - www.mca.gov.in) through the Offices of Registrar of Companies (ROC) in each State. Types of companies that can be registered in India are Private Companies and Public Companies. Company Registration process starts by filing of name application with the ROC. Once, name is allotted, company registration documents have to be prepared and filed with respective ROC for registration. Up on scrutiny of documents, in a day or two the ROC registers the Company and issue the Certificate of Incorporation. CompaniesInn simplifies the company registration process. We can assist you to register companies anywhere in India at an attractive cost.  More information regarding Forms of Business in India

name availability guidelines 2011

Company Name Guidelines

The Ministry of Corporate Affairs (MCA) has revised the Company Name application and approval process and the company name availability in India will be regulated as per the revised 'Name Availability Guidelines 2011'. As per the Name Availability Guidelines 2011, no company should be registered with an undesirable name. A name is considered to be undesirable if it is identical with or too nearly resembling with: Name of a company in existence and names already approved by the Registrar of Companies; Name of a Limited Liability Partnership (LLP) in existence or names already approved by Registrar of LLP; or A registered trade-mark or a trade mark for which an application is filed under the Trade Marks Act, 1999 While making a Company name application, the following points should be considered: Use the search facilities available on the portal of the Ministry of Corporate Affairs (MCA) to check the resemblance of the proposed name(s) with the companies and Limited Liability Partnerships (LLPs) respectively already registered or the names already approved. The proposed name is not infringing any registered trademarks or a trademark for which an application is filed. The proposed name is not in violation of the provisions of Emblems and Names (Prevention of Improper Use) Act, 1950 as amended from time to time. The use of the proposed name(s) should not constitute an offence under any law The proposed name is should not offensive to any section of people Company Name Application and Approval process Selection of Company Name – Important points: Company Name – General Conditions Trade Mark Registration and Company / LLP Name Company / LLP Name, Business Name, Brand and Logo – How does it differ? Who should register your Domain Name?