Start a Business

1. Proprietory Concern

Starting a proprietary concern or proprietary firm is a simple process. There is no formal registration to be done. An Individual / sole trader (or one person firm) intending to do business or profession, can register the concern under Goods and Service Tax Act (GST), Profession Tax Act or Shops and Establishment act or Udyog Aadhar (MSME).

The business can be operated in the Individual’s name or a formal name can be given to perform the business.

We at S.V.Bhat & Co, have helped many individuals to set up proprietary concerns. This is a very cost effective form of starting the business.

In case you need our services to start a proprietary concern, please write to [email protected]

2. Partnership Firm

Persons who have entered into a partnership with one another are called individually “partners” and collectively “a firm”, and the name under which their business is carried on is called the “firm-name”.

To commence a partnership firm, at least two persons are required. The firm doesn’t have a separate legal entity like a company. The firm is a collective name given to individual partners.

A firm is registered under Registrar of Firms, situated in the respective jurisdiction.

We at S.V.Bhat & Co, CA firm have rich experience in setting up partnership firms. We provide the following services –

  • Registration of the partnership firm
  • Reconstitution/amendments to the firm
  • Dissolution of partnership firm
  • File Income Tax returns for the firm and its partners
  • Tax consultation, both Income Tax and GST

In case you need assistance in setting up a partnership firm, please write to [email protected]

3.One Person Company (OPC)

A One Person Company (OPC) combines most of the benefits of a sole proprietorship and a company form of business. It has only one person as a member who will act in the capacity of a director as well as a shareholder. OPC is formed as a Private Limited Company.

Only an Indian citizen and resident can form a One Person Company. The term “resident in India” means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one financial year.

One Person Company is forbidden from giving any invitations to the public to subscribe to the corporation’s securities.

No One Person Company could voluntarily convert into any other type of corporation within 2 years from the date of incorporation of One Person Company, except when the threshold limit of paid-up share capital  is Rs. 50 lakhs  is crossed or its average annual turnover during the applicable period exceeds Rs 2  crores.

We can assist in registering OPC in India. In case you need our services, please write to [email protected]

4. Limited Liability Partnerships (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, is liable to the full extent of its assets but the liability of the partners is limited to their agreed contribution in the LLP. Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.

We at S.V.Bhat & Co, have the experience of incorporating Limited Liability Partnership firms.

In case you need our services, please write to [email protected]

  • Under “traditional partnership firm”, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner.
  • Under LLP structure, the liability of the partner is limited to his agreed contribution.

No. The essential requirement for setting LLP is ‘carrying on a lawful business with a view to profit’.

A minimum of two partners will be required for formation of an LLP. There will not be any limit to the maximum number of partners.

Yes. A company can be a partner in LLP

Every LLP shall be required to have at least two Designated Partners who shall be individuals and at least one of the Designated Partner shall be a resident of India. In case of an LLP in which all the partners are body corporates or in which one or more partners are individuals and body corporates, at least two individuals who are partners of such LLP or nominees of such bodies corporate shall act as designated partners.

LLPs shall be registered with the Registrar of Companies (ROC)

Yes, the LLP Act allows Foreign Nationals including Foreign Companies & LLPs to incorporate a LLP in India provided at least one designated partner is resident of India. However, the LLP/Partners would have to comply with all relevant Foreign Exchange Laws/ Rules/ Regulations/ Guidelines.

5. Private Limited Company

A private limited company is a corporation that is privately held for small businesses. The legal obligation of the members of a Private Limited Company in India is limited to the number of shares respectively which are held by each of the partners.

The minimum capital required is Rs.100, 000 and a private limited company could have a maximum of 200 members but minimum of two shareholders and two directors. The shareholders can be the directors of the company. One of the directors, however, should be a Resident Indian

We at S.V.Bhat & Co., Chartered Accountants, have good working knowledge of setting up a company in India. In case you require our services, please write to [email protected]

6. Trusts and Societies

A trust can be registered under Indian Trust Act, 1882 and a society can be formed under the provisions of Societies Registration Act.

At least two trustees are required to register a public charitable trust. However, a minimum of seven members are required for formation of a society.

Yes, both Trusts and societies are eligible for tax exemption provided the exemption criteria of the Income Tax Act are complied with.

We at S.V.Bhat & Co., have facilitated people to set up trusts and societies in Mumbai. We have also represented at the tax department to obtain Tax exemptions.

In case you need any of these services, please write to [email protected]