Establishing a Business/Incorporate a Business or Company/Incorporation

Establishing a Business

Confused on the type of entity to be setup??? We are here to help you. Punith and Associates provides advice on business ranging from proprietary firm to private limited companies. Learn everything that is essential to start a business from registrations to compliance. Few of the business models suggested by us for Indian as well as foreign owners are:

For any assistance in this regards, please reach us on info@capunith.com

a. Proprietary Concern

Proprietary Concern has been one of the simplest forms of business in terms of maintenance. There would be no legal distinction between the owner and the business entity. Here the sole trader or the individual can register the entity under GST or PT or Shops and Establishment act based on the business he intends to pursue. Punith and Associates have the experience in incorporating a Proprietary Concern for various firms in diverse industries.
If you are thinking of starting a Proprietary Concern write us at info@capunith.com for our services

Following may be few of the registrations required based on the business:

• Trade License
• Import Export Code (ICE)
• Employee State Insurance (ESI)
• Employee Provident Fund (PF)
• Professional Tax (PT)
• Goods and Service Tax (GST)
• MSME or Udyog Aadhaar
• Shops and Establishment

Few of the documents required for registration may be:

• PAN Card
• Proof of place of Business
• Aadhaar Card
• Bank Account
• Shop and Establishment Act License
• GST registration

b. Partnership Firm

Individuals who have entered into partnership with one another collectively under a firm to carry-on a business are recognized as partnership firm. The following can enter into a partnership by law:

• An Individual
• A firm
• A company
• A trustee

At part from setting up of the partnership firm we also provide other services namely:

• Registration of the firm
• Filing of Income tax returns for both the firm and the partners
• Tax consultation (Income Tax/ GST/Others)
• Amendments to the firm
• Dissolution of partnership firm

Punith and Associates have the experience in incorporating a Partnership firm for various firms in diverse industries. For any assistance in this regards, please reach us on info@capunith.com

c. Private Limited Company

Ministry of Corporate Affairs is the governing body in India which regulates all Private Limited Companies in India. The Companies Act of India is now called as Companies Act, 2013. There are certain minimum requirements for registration of the company such as:

• Members : A minimum number of two and a maximum number of 200 members or shareholders are required as per the companies' act 2013 before registration of the company
• Directors : A minimum number of two directors are required for registering the private limited company. Each of the directors should have DIN i.e. director identification number which is given by the ministry of corporate affairs. One of the directors must be a resident of India
• Obtaining digital signature certificate : All documents are submitted electronically and for that, every company must obtain a digital signature certificate which is used to verify the authenticity of the documents. A digital signature is obtained by all the directors which are marked on all the documents by every director.

Punith and Associates have the experience in incorporating a Private Limited Company for various firms in diverse industries.

For any assistance in this regards, please reach us on info@capunith.com

Producer Companies

Producer Company means a body of corporate having objects or activities specified in section 581B and registered as Producer Company under the Companies Act, 1956. The producer companies can be formed by 10 or more individual or by two or more institutions or by both 10 individuals and two institutions. These companies can carry out activities such as procurement, production, harvesting, grading, pooling, handling, marketing, selling, export of its primary produce of the members or import of goods or services for their benefit.

Punith and Associates have the experience in incorporating a producer companies.
If you are planning to start a producer company write us at info@capunith.com for our services

d. Limited Liability Partnership (LLP)

LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP is a separate legal entity and is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Since LLP contains elements of both 'a corporate structure' as well as 'a partnership firm structure' LLP is called a hybrid between a company and a partnership.

Punith and Associates have the experience in incorporating a Limited Liability Partnership for various firms in diverse industries.
For any assistance in this regards, please reach us on info@capunith.com

e. One Person Company (OPC)

The concept of One Person Company in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. It is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder, while having continuity of business and being easy to incorporate.

Punith and Associates have the experience in incorporating a OPC for various firms in diverse industries.
If you are planning to start an OPC write us at info@capunith.com for our services.

f. Trust and Societies

There are certain forms of organization which is created, with an aim of providing services to the members, rather than earning a profit. Trust and society are two such organizations. Trust is a legal arrangement in which a person holds property for the sake of some other person. Society is an association of person, who come together to fulfill any particular purpose, described under the act.

Difference between Trust and Society

BASIS FOR COMPARISON	TRUST	SOCIETY
Meaning	A legal relationship, in which author assigns property to the trustee for the benefit of the beneficiary.	A society is an organized group of persons, who are joined together for fulfilling any purpose relating to literature, science or charity.
Statute	Indian Trust Act, 1882	Societies Registration Act, 1860
Document	Trust Deed	Memorandum of Association and Rules & Regulations
Minimum Persons Required	2	7
Governed By	Board of trustees	Governing Body which should be directors, governors, trustees etc.

Punith and Associates have assisted several people in setting up of trusts and societies and also have represented them for tax exemptions at tax department.
For any assistance in this regards, please reach us on info@capunith.com

g. Subsidiary company

A company owned or controlled by its parent company is usually termed as subsidiary. The minimum level of ownership of 51% guarantees the parent company the necessary votes to configure the subsidiary's board. This allows the parent to exercise control in company decision-making.

Minimum requirement to incorporate a Pvt. Ltd. Company

• Two directors
• Two shareholders

Punith and Associates have the experience in incorporating Subsidiary companies in diverse industries.
If you are planning to start a subsidiary company write us at info@capunith.com for our services

h. Branch Office

An outlet of a company or organization unlike a subsidiary with no separate legal entity is referred as Branch office, which may be physically separated from the organization main office. A branch structure exposes the owning company to full taxability and legal liability in regard to the branch office's operations.

Foreign companies are allowed to set up Branch Offices in India for the following purposes:

• Export/Import of goods
• Rendering professional or consultancy services
• Carrying out research work, in which the parent company is engaged.
• Promoting technical or financial collaborations between Indian companies and parent or overseas group company.
• Representing the parent company in India and acting as buying/selling agents in India.
• Rendering services in Information Technology and development of software in India.
• Rendering technical support to the products supplied by the parent/ group companies.

Punith and Associates have assisted several people in setting up of branch office
For any assistance in this regards, please reach us on info@capunith.com

i. Section 8 Company

Section 8 of the Companies Act, 2013, which pertains to a established 'for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object', provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members. Therefore, Section 8 Company or Section 25 Company is a company registered under the Companies Act, 2013 for charitable or not-for-profit purposes.

These trusts can be set up in namely three different forms:

• As a company under Companies Act, 2013
• As a trust under Indian Trust Act
• As a society under State Co-operative Societies Act

Few of the documents required for registration may be:

• Digital Signature Certificate
• Director Identification Number
• Memorandum of Association
• Articles of Association
• ID proof for members: (Aadhar Card, Passport, Voter ID)
• Passport size Photographs
• Director's details (if Members are other Companies/LLPs)
• Address Proof

Punith and Associates have assisted several people in setting up of companies under Section 8 and also have represented them for tax exemptions at tax department.
If you are planning to start a company under Section 8 write us at info@capunith.com for our services

j. Association of Persons (AOP)

Integration of two or more persons for a common purpose with an intention to earn some income is referred to Association of persons under Income Tax Act, 1961. Here persons may be a company or a body of individuals. The AOP is treated as a separate legal entity for the purpose of assessment.

At part from setting up of AOP we also provide other services namely:

• Registration of the firm
• Filing of Income tax returns
• Tax consultation (Income Tax/ GST/Others)
• Auditing and reporting

We at Punith and Associates have the experience in incorporating a AOP for various firms.

If you are planning to start an AOP, write us on info@capunith.com for our services.