Please Choose among Following Constitution as per your need
- Sole Proprietorship Registration
- Partnership Firm Registration
- Private Ltd. Company Registration
- Public Ltd. Company
- LLP Registration
Sole Proprietorship Registration
A sole proprietorship is a “sole proprietorshipâ€. Choose this option if you want to run your business in your
name and her PAN number without going through many legal formalities under other terms. This will initially be
the fastest and cheapest form of business
A sole proprietorship is the simplest form of business ownership, where one person owns and runs the
business. This is an attractive option for people who want full control of their business but don't want to
share profits or decision-making rights with others. Sole proprietorships offer the benefits of lower start-up
costs, easier tax filing, and more flexibility in decision-making.
UNDERSTANDING SOLE PROPRIETORSHIP
Let's take a deep dive into the benefits and hassle-free nature of running a sole proprietorship. Filing
directly with the state is an option, but SAR Tax Buddy is more than just registration. We offer a full range
of support services, from GST registration to tailored business advice, all designed to give your business the
competitive edge it needs.
Here's How It Works
- Fill out the form: - Simply fill out the form above to get started.
- Call us for a consultation: - One of our experts will contact you and clarify your legal matters.
- Incorporate: - You are ready to become a sole proprietor.
WHY CHOOSE SAR TAX BUDDY?
- Personal attention with customized support throughout the registration process.
- Value for money with maximum rebates and no hidden fees.
- Customer confidentiality regarding data protection and legal compliance.
- Superior customer support with 24/7 support and expert advice.
ADVANTAGES OF SOLE PROPRIETORSHIP
LEGALLY RECOGNIZED
The Proprietor will be legally recognized as a Supplier of Goods & Services
INPUT TAX CREDIT
The proprietor can claim the Input tax credit (tax paid on the purchase of goods & services)
INTERSTATE SALES
He can make Interstate sales without restrictions the proprietor can have a competitive advantage in
comparison to other businesses
LESS COMPLIANCE
In GST, the number of compliances are less as it has replaced all other indirect taxes
PASS THE CREDIT
The proprietor can pass on the credit of the taxes paid on the supply of the goods & services to the purchaser
COMPOSITION SCHEME
Small businesses (having turnover of less than 1 crore) can opt for composition scheme to lower their taxes
Lists of businesses best suitable for Sole Proprietorship
Retail Traders
A company engaged in retail business. Example: Household goods and electrical appliance stores, grocery stores,
general stores etc. can be operated as a sole proprietorship. The capital requirements and investments in this
case are minimal, which makes it advantageous to choose a sole proprietorship.
Repair & maintenance Services
Services related to the repair and maintenance of automobiles, home appliances, electronic machinery, etc. are
often provided by local shops, convenience stores, and repair shops, and may be best suited to you as a sole
proprietor.
Small Scale home businesses
A small home business is less risky than a sole proprietorship business structure.
Local Transportation Services
Local transport services such as cars, electric rickshaws and minibuses require very little capital and few
employees to realize the profits of a sole proprietorship.
Software Consultancy services
These services require basic system equipment and can be run independently with minimal investment.
Tutoring services
Tuitions are often conducted by the owner in their home or other suitable location. You can provide these
services as an owner and get the full benefit.
Freelance Writers
Freelancers are independent and can also work from home. This does not require an organized business form and
can easily be converted to a sole trader.
Clinic & medical management facilities
Most clinics and small medical businesses initially start out as sole proprietorships.
Sole Proprietorship vs One-Person Company
OPCs & Sole Proprietorship are two distinct business structures but many-a-times people get confused between
the due and assume both to be the same. Let's distinguish them on the below parameters
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Parameter
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Difference
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Registration
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In OPC, the company can be registered under MCA and Companies Act, 2013, whereas Sole Proprietorship
Registration is not compulsory in general. It does not require any formal registration as such as it is
identified through alternate registrations, such as GST registrations. A proprietor can register if he
wants to register his company.
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Legal Status
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Unlike a partnership firm or corporation, sole proprietorship does not have any separate legal identity.
It is a limited business structure that connects the business and the business owner. Proprietor and
business are indistinguishable from a tax and legal point of view. OPC on the other hand is treated as a
private company having a separate legal entity. It has the advantage of corporate status in society.
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Compliance
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In case of a one person company, the compliances are much more strict than proprietorship. This is
because the company has to register annual returns, get its accounts audited, and meet other compliances
of a Private Limited Company. It would also have to get accounts edited in the same manner as done by a
private limited company. Whereas, In a sole proprietorship, In a sole proprietorship, the owner only needs
to file the annual returns and the firm is required to get accounts audited only if the annual turnover
crosses the threshold limit as specified under the provisions of the Income Tax Act.
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Liability
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Since, One Person Company is a separate legal entity, the owner has liability limited to the extent of
share capital, in case the business suffers a loss. This is the most attractive reason why many
individuals are opting for an OPC. Whereas, a sole proprietorship’s liability is unlimited, which
means all the assets of the individual will be attached and there is no limitation on the liability. Also,
Liability extends to his personal belongings as well.
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Conversion
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Conversion of Sole Proprietorship to Private Limited Company is possible but it’s a bit tiresome
process. Whereas, the conversion of OPC to Private Limited Company is COMPOSITIONly easy. OPC has to
convert itself into a Private Limited Company if its paid-up share capital exceeds Rs.50 Lakhs and if its
average turnover of any three consecutive financial years exceeds Rs.2 Cr.
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Succession
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In a sole proprietorship firm, since there is no distinction between the business firm and the owner, the
succession is possible only through an execution of the will. Whereas, one person company must have a
nominee designated by its members for the purpose of succession. Only a natural born citizen and a
resident of India shall be eligible to be a nominee who in case of death of the member shall take his/her
place. OPC is not affected by the death of the member and has continued succession.
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Partnership Firm Registration
A Partnership firm is a Legal identity which is registered by two or more persons by executing a partnership
deed with each other. Choose this option if you are two or more person (Max limit up to 10 Partners) coming
together for a business idea. Even though this form of business is governed under the Indian Partnership Act
1932, the partners are at free will to decide on various terms pertaining to share of profits/salaries and other
related matters. It has less legal regulatory as compare to PVT Ltd Company or Limited liability partnership.
What is Partnership Registration?
A partnership is an organization made up of two or more people (up to 10 people) who agree to pool their
financial resources, management skills, and abilities to continue the business by sharing profits and losses. A
partnership is a legal entity that is registered by signing a partnership deed. Although this business form is
regulated by the Indian Partnership Act, 1932, the partners are free to decide on various terms regarding
profit/salary sharing and other related matters. There are fewer legal restrictions compared to Pvt Ltd Company
and Limited Liability Partnership. In India, all partnership firms are usually general partnerships.
At SAR Tax Buddy, we can help you prepare or draft a partnership agreement on your terms. Our team consists of
editorial experts, legal advisors, specialized CAs and CSs with extensive knowledge in their respective fields.
We are currently growing every day with our customer community. If you would like to learn more about
hassle-free partnership business registration, please contact us.
Understanding Partnership Registration
Completing the partnership registration process is an important step in starting your business. While you can
apply directly, SAR Tax Buddy provides a seamless experience, guiding you every step of the way and providing
the expertise to ensure your partnership starts on the right track.
Here's How It Works
- Fill out the form: - Simply fill out the form above to get started.
- Call to consultation: Our experts will connect with you & complete legalities.
- Incorporate: - Get your Partnership Firm
WHY CHOOSE SAR TAX BUDDY?
- Personal attention with customized support throughout the registration process.
- Value for money with maximum rebates and no hidden fees.
- Customer confidentiality regarding data protection and legal compliance.
- Superior customer support with 24/7 support and expert advice.
KEY FEATURES OF PARTNERSHIP FIRM
- Number of members:
The minimum number of people required to establish a cooperative is 2 people, 10 people for banking, and a
maximum of 20 for other industries.
- Contractual relationship:
A written agreement signed by all partners, the so-called partnership deed, binds the partners to a
contractual
relationship. This partnership is governed by the Indian Partnership Act, 1932, which governs its operation,
management, decision-making methods and other activities
- Voluntary Registration:
Registration of a partnership firm is not mandatory by law. The decision regarding this rests entirely with
the
partners and the business owner.
- Capacity of Partners:
Each partner must have sufficient capacity to enter into a partnership agreement. He cannot be a minor,
mentally disabled, or bankrupt.
- Distribution of profits and losses:
In a partnership firm, all profits and losses are shared by the partners in agreed proportions. If it is not
given, they will share it equally.
- Unlimited Liability:
The liability of the partners in a partnership is unlimited. You are jointly and severally liable for the
company's debts and losses.
- Legal Status:
A partnership firm does not have its own legal status apart from its partners.
- Perpetual succession:
There is no permanent succession in a partnership company.
- Purchase of immovable property:
A partnership firm cannot purchase movable/immovable property in its name. It must be purchased in the name of a partner.
- Dependency of partners:
In a partnership firm, resignation or death of one of the partners has a major impact and the partnership is
dissolved, so the partnership has to be dissolved. Re-incorporation
Benefits of a Partnership Company
- Easy to Find
Very easy to set up. We need to make a simple agreement.
- Advantages
Flexibility in Change
A partnership firm is as easily flexible to change as a proprietary firm. Existing limitations prevent such
changes from being easily implemented within enterprises.
- Risk Sharing
Risk sharing is also a very important feature when these types of businesses are formed. The company's
profits or losses are shared by the partners, ultimately reducing the burden of losses and costs for each
individual.
- Reducing Legal Obligations
Partnerships have no legal obligation to disclose financial information to the public as corporations do.
Therefore, corporate activities become even more secretive.
- Efficiency and Effectiveness
Partnership means that different people are part of a company and different ideas work towards a unified
goal. What will increase your chances of achieving your goals efficiently and effectively in the time you
want?
- Diverse Experts
Consists of a variety of people with different skills and expertise that can help your business .
- BUSINESS
Compared to businesses, the burden of complying with legal regulations is also very low. Therefore, it is
also very economical.
- Dissolution
A partnership can be dissolved by consent, mutual consent, bankruptcy, certain contingencies and court order.
The dissolution process of registered partnerships is reliable and fast.
Importance of Partnership Business Registration
In the digital age, starting a business partnership should be as easy and hassle-free as possible. This is
where online partnership business registration comes in and provides a logical solution for modern
entrepreneurs.
The first step in this process is to draw up a partnership deed. This document plays a central role by
establishing operational rules. We explain each partner's responsibilities and rights, creating a transparent
and structured environment from the beginning. This is a precautionary measure that prevents possible conflicts
and promotes harmonious business relationships by establishing clear guidelines.
But the benefits of registering a partnership firm go beyond mere clarity and harmony. This provides a smoother
path to obtaining business loans and necessary licenses, essentially simplifying the bureaucratic processes that
often stand in the way of new businesses. Additionally, it gives the company formal status and increases its
credibility in the business environment.
Fundamentally, the decision to register a company online is more than just following legal formalities. It's a
strategic move based on logic. This simplifies the registration process and saves time and effort in building
successful business partnerships.
PARTNERSHIP FIRM VS. LLP
The most commonly used partnership types are general partnerships and limited liability partnerships (LLPs).
Both structures are similarly-formed entities, but differ based on how they operate, terms and conditions, etc.
Both organizations are subject to different government regulations and enjoy different types of
responsibilities, advantages, disadvantages, and freedoms within their spheres. Therefore, before choosing a
company, you need to be clear about what kind of business you are in and what your goals and objectives are.
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Parameter
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Difference
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Number of Partners
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A General Partnership firm can have two or more members with a maximum limit of 10 whereas a Limited
Liability Partnership must be registered under the Act with a minimum of two partners. There is no limit
on the maximum number of partners in LLPs. Both LLP and partnership firms must have a minimum of 2
partners. If the number of partners reduces below 2 in a partnership firm due to any reason the firm would
stand dissolved. But, in case of LLPs if the number of partners reduces below 2, the sole partner can find
a new partner without actually dissolving the firm.
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Legal Status
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Partnership firms have no distinct legal status separate from its partners whereas a LLP is a body
corporate having a separate legal entity and has perpetual succession.
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Compliance
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For LLPs, it is mandatory to file the annual return to the Ministry of Corporate Affairs (MCA) and the
ROC annually in the prescribed format . Whereas, a partnership firm requires no annual return filing.
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Transferability
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Shares can be transferred to another person after obtaining the permission of all the Partners in a
Partnership. The transferability of a Partnership is unwieldy, whereas the shares of an LLP can be
transferred. However, the transferee is not allowed to become a Partner automatically. The share of an LLP
can be transferred to another person more easily.
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Perpetual succession
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Partnership Firm does not have perpetual succession whereas LLP has perpetual succession.
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Property Purchase
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A partnership firm cannot purchase movable/immovable property in its name. It must be purchased in the
name of partners. On the contrary, LLP can purchase movable / immovable property in its name
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Audit of accounts
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Partnership firms are only required to have tax audit of their accounts as per the provisions of the
Income Tax Act In LLP, if the firm’s turnover does not go beyond, in any financial year, Rs. 40
lacs, or whose turnover does not go beyond Rs.25 lakhs is not obliged to get its accounts audited. Except
all LLPs are required to get their accounts audited annually as per the provisions of LLP Act 2008.
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Agreement between Partners.
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The partnership is governed by the Indian Partnership Act, 1932 where Partnership Deed governs the
operation, management and decision-making methodologies and other activities. Whereas, Limited Liability
Partnership Act, 2008 governs LLP in India. The operation, management and other activities of the LLP are
accordance to the LLP Agreement
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Manageability
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Partnership firms are difficult to operate or move across India because the Registrar of firms that
register the partnership firms are controlled by the state government. But, in case of LLPs, they can open
a bank account and shift their registered office anywhere in India and as it is registered under the MCA.
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Partners’ Dependency
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In a Partnership firm, the resignation or death of any of the partners would have a huge impact and the
Partnership would stand dissolved & have to be reconstituted whereas in LLP, the subsistence is not
dependent on its partners. The changing of partners of the LLP will not affect the existence or operations
of the firm.
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Dissolution
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Partnership firms can be dissolved by agreement, mutual consent, insolvency, certain contingencies, and
by court order. On the other hand LLP can be dissolved voluntarily or by order of the National Company Law
Tribunal.
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Private Limited Company Registration
Private companies in India sit between partnership companies and large public companies. This is regulated by
the Companies Act 2013 and the Companies Incorporation Regulations 2014. This is a widely popular business
option in India as it gives the company separate legal personality, limited liability, greater transparency, and
international recognition. The ownership of the company is divided among different shareholders (up to 50
people) depending on their capital investment in the company as share capital. The liability of members of a
limited liability company is limited to the number of shares they hold.
SAR Tax Buddy provides professional legal services to facilitate the registration process of forming a
limited liability company. Although the Indian government has taken steps to streamline the process, it still
contains technical details that require careful attention. Trying to accomplish this task without professional
help can be difficult. At SAR Tax Buddyour team of experts takes the burden off your shoulders and saves
you time and energy. We provide comprehensive support such as obtaining DIN/DSC for directors, drafting MoA/AoA,
obtaining company PAN/TAN, and obtaining articles of incorporation. SAR Tax Buddy's timely and dedicated
approach ensures a smooth and efficient private limited company registration.
Take advantage of Private Limited Company Registration Path
Choosing to register as a Private Limited Company in India is a strategic move for many companies, offering
benefits such as separate legal personality, limited liability, etc. Masu. While the Indian government
streamlines the registration process, SAR Tax Buddy provides expert guidance for smooth navigation in these
waters and ensures that all technical details are handled accurately.
Here's How It Works
- Fill out the form: - Simply fill out the form above to get started.
- Call To consultation: - Our experts will connect with you & complete legalities.
- Get Incorporate: - Get your private limited incorporation.
WHY CHOOSE SAR TAX BUDDY?
- Personal attention with customized support throughout the registration process.
- Value for money with maximum rebates and no hidden fees.
- Customer confidentiality regarding data protection and legal compliance.
- Superior customer support with 24/7 support and expert advice.
ADVANTAGES OF PRIVATE LIMITED
- Separate legal entity
A limited liability company has a separate legal entity. The company owns and trades in its name, has its own
seal, and its assets are separate and segregated from those of its members.
Primacy
- Eternal Succession
The life of a society does not depend on the lives of its founders or members. Even if the partners, all the
partners, go bankrupt, the company is not affected.
Advantages
- Limited Liability
The privilege of limited liability for commercial debts lies in the fact that the liability of the partners
as
shareholders extends to contributions to the share capital up to the nominal value of the shares held by them,
and also for payments made. Not yet.
Advantages
- Free and Easy Transfer of Shares
Shares in a limited liability company can be transferred from one shareholder to another. You can easily
transfer your shares by submitting and signing a stock transfer form and delivering the shares along with your
stock certificate to the buyer.
Advantages
- BORROWING CAPACITY
Companies can issue both secured and unsecured bonds, and can also accept deposits from the public. Even
banks
and financial institutions prefer to provide large amounts of financial assistance to businesses over
partnerships and private companies.
Name Format
The preferred format for company names under the MCA is Unique Component + Descriptive Name + Private Only.
Unique components need to be creative, imaginative, and unique, while a descriptive name succinctly defines your
company and benefits your work/business.
Once you select a name, MCA asks you to explain the meaning and main purpose of the name in 1-2 sentences.
Checklist Requirements
? Company name must be unique and must not be the same as any existing company or brand in India
? At least two directors are mandatory for setting up a private limited company. They must be above 18 years
of age
? Directors require a Director Identification Number (DIN) as a prerequisite for company formation. SAR Tax
Buddy experts will do that for you
? A company must have at least two shareholders. A person can be both a director and a shareholder of a limited
company.
? The company must have a registered office and proof of address of this registered office must be provided.
PUBLIC LIMITED COMPANY REGISTRATION
Incorporating a Public limited company is a technical task due care should be taken while incorporating a
Public limited company. The Government of India has taken various steps to make incorporation process
simplifies, however a layman himself cannot incorporate a Public limited company, one has to appoint a
professional to complete this task. Now, the companies are incorporated via E-Form SPICe. E-Form SPICe (INC-32)
deals with the single application for reservation of name, incorporation of a new company and/or application for
allotment of DIN and/or application for PAN and TAN. Once the E-Form is processed and found complete, company
would be registered and CIN would be allocated. Also DINs gets issued to the proposed Directors who do not have
a valid DIN. Maximum three Directors are allowed for using this integrated form for filing application of
allotment of DIN while incorporating a company. Also PAN and TAN would get issued to the Company.
The public limited company is also governed under the company's Act 2013 and the Companies Incorporation Rules,
2014. A Minimum of 7 shares holders and 3 directors are required to start a public limited company. It is more
suitable for generating funds from the public at large by issuing IPO's and getting listed at the stock Market.
Public limited company follow strict regulatory guidelines from SEBI and under Companies Act 2013 as public
money is involved in the company.
Advantages
- Separate legal entity
A limited company has a separate legal entity. The company owns and trades in its name, has its own seal, and
its assets are separate and segregated from those of its members.
- Limited Liability
The privilege of limited liability for commercial debts is the responsibility of the partners as
shareholders, extending to contributions to the share capital up to the nominal value of the shares held by
them. . paid.
- Free and Easy Transfer of Shares
Shares in a limited liability company can be transferred from one shareholder to another. You can easily
transfer your shares by submitting and signing a stock transfer form and delivering the shares along with your
stock certificate to the buyer.
- Eternal Succession
The life of a society does not depend on the lives of its founders or members. Even if the partners, all the
partners, go bankrupt, the company is not affected.
- Credit Capacity
Companies can issue both secured and unsecured bonds, and can also accept deposits from the public. Even
banks and financial institutions prefer to provide large amounts of financial assistance to businesses over
partnerships and private companies.
- No limit on number of members
In contrast to a limited company, a limited company has no limit on the maximum number of members.
LLP Registration
Limited liability Partnership (LLP) Registration
A limited liability partnership (LLP) is a legal form that combines the flexibility of a partnership with the
limited liability of a corporation. It is a legal entity separate from the partners and has permanent legal
succession. LLP registration is suitable for small and medium-sized businesses, such as start-ups and
professional service providers, as it provides limited liability protection for partners while allowing flexible
business operations.
Easy to navigate LLP registration
An LLP offers a flexible partnership with limited liability protection, making it an attractive option for many
business owners. While the government is streamlining the LLP registration process, SAR Tax
Buddy’s expertise can help you avoid legal complexities and ensure a smooth business start-up.
Here's How It Works
- Fill out the form: - Simply fill out the form above to get started.
- Call To consultation: - Our experts will connect with you & complete legalities.
- Get Incorporate: - Get your LLP incorporation.
WHY CHOOSE SAR TAX BUDDY?
- Personal attention with customized support throughout the registration process.
- Value for money with maximum rebates and no hidden fees.
- Customer confidentiality regarding data protection and legal compliance.
- Superior customer support with 24/7 support and expert advice.
Advantages of forming an LLP
- Separate legal entity
Unlike partners, an LLP has its own seal and assets and can own property and enter into contracts.
- No minimum capital contribution
LLPs can be formed with any amount of capital contributed by the partners and no minimum paid-up capital is
required.
- Limited Liability
LLPs have limited liability, meaning only their assets are responsible for paying their debts and the
partners
have no personal liability.
- Reduced Compliance
LLP only has to file her two returns in a year: the annual return and the statement of accounts and solvency.
- Survival
LLPs are not affected by the death, retirement or bankruptcy of a partner and are dissolved in accordance
with
the provisions of the 2008 Act.
- No Maximum Number of Partners
LLPs have no upper limit on the number of partners, allowing full capital contributions from all partners.
Key Features of LLP Business
1. Number of Partners:
LLP partnership requires a minimum of two partners but there is no limit on the maximum number of partners.
2. LLP Agreement: The LLP Agreement
Governs the LLP and describes the operations, management, rights and obligations of the appointed partners.
3. Capacity of Partners:
All partners must have the capacity to enter into a partnership agreement.
4. Distribution of Profits and Losses:
In a partnership, profits and losses are shared as per the agreed upon proportions.
5. Liability:
The liability of a partner is limited in proportion to his contribution to the firm.
6. Legal status:
partnership firms have a separate legal status from their partners.
7. Preferable over general partnership:
LLP combines the advantages of a corporation with the advantages of a traditional partnership.
8. Acquisition of real estate:
LLP can acquire real estate in its name. A partnership company cannot do this.
9. No partner dependencies:
In a LLP, unlike a partnership firm, a change in partners does not affect its survival or operations.
COMMITMENT TO PRIVACY