Back
Rohan Kute
Business | infograph...ย โขย 7m
If you ever wonder to start a company, you should have to know this. There are three types of companies: 1) Private Limited Company Eligibility: Minimum 2 directors and 2 shareholders (at least 1 Indian resident). Pros: Limited liability protection. Easy to raise funding from investors. Separate legal identity. Perpetual existence. Recognized and trusted business structure. Cons: Higher compliance and legal formalities. Mandatory audits every year. Higher registration and maintenance cost. Requires professional help (CA/CS). Ownership transfer needs documentation. --- 2) LLP (Limited Liability Partnership) Eligibility: Minimum 2 partners (1 must be Indian resident). Pros: Limited liability for partners. Lesser compliance than Pvt Ltd. No audit required if turnover < โน40 lakh. Separate legal entity. Best for service-based businesses. Cons: Cannot raise equity funding easily. Can't issue shares. Less recognized by investors. Annual MCA filing is mandatory. Conversion to Pvt Ltd is complex. --- 3) Partnership Firm Eligibility: Minimum 2 partners. (Registration optional) Pros: Very easy and cheap to start. Minimal compliance. Full control and flexibility. No MCA involvement. Good for small/traditional businesses. Cons: Unlimited liability. Not a separate legal entity. Hard to raise external funds. Less legal protection. Ends if a partner leaves or dies.
Replies (5)
More like this
Recommendations from Medial
Ashutosh Jha
Full Stack Engineer ...ย โขย 1y
If you're Planning to Start Your "Entrepreneurial Journey" What path you gonna choose and why? 1๏ธโฃ Joining a Startup: Pros: Immersive experience, understanding of business realities, and skill development. Cons: Instability and limited resources.
See More
Tarun Suthar
ย โขย
The Institute of Chartered Accountants of Indiaย โขย 10m
Why LLP is the Best Way to Launch a Startup? ๐๐ Starting a business is an exciting yet challenging journey. Choosing the right legal structure is crucial, as it impacts taxation, liability, compliance, and growth. Among various options, a Limited
See More
Tarun Suthar
ย โขย
The Institute of Chartered Accountants of Indiaย โขย 10m
Why LLP is the Best Way to Launch a Startup? ๐๐ Starting a business is an exciting yet challenging journey. Choosing the right legal structure is crucial, as it impacts taxation, liability, compliance, and growth. Among various options, a Limited
See More
Aanya Vashishtha
Drafting Airtight Ag...ย โขย 8m
Should You Raise Fund or Bootstrap? Hereโs a Reality Check Every founder faces this question: Should you raise external funding or bootstrap your startup? Both paths have pros and cons, and the right choice depends on your business goals, risk tol
See More
Chaudhuri Singh
Hey I am on Medialย โขย 8m
vidhaan is a SaaS Legal Platform is an all-in-one solution providing cloud-based and physical legal document services. Designed to serve individuals, enterprises, and legal professionals, our platform streamlines compliance management, automates lega
See More
Aanya Vashishtha
Drafting Airtight Ag...ย โขย 8m
"Sole Proprietorship vs. Private Limitedโ Imagine this: Youโre launching your dream business. Youโve got the idea, the drive, and maybe even your first few clients. But then, the big question hits youโ "Should I register as a Sole Proprietor or a
See More
Pranjal Pandey
ย โขย
CompSciย โขย 1y
Starting a startup in India involves several legal considerations. Here's a detailed point-wise list of the general legal processes : 1. Choose a Business Structure : Decide on the legal structure of your startup, such as Sole Proprietorship, Partne
See More
Download the medial app to read full posts, comements and news.