Incorporation of Companies

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)

+ Can a business name be given for proprietary concern?

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

We at swasthikandco., have helped hundreds of individuals to set up proprietary concern in Bangalore. This is a very cost effective form of starting the business.

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, atleast 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.

Setting up a Private Limited Company in India requires a 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.

Choosing the name of the company is a bit tricky! While choosing the name, one has to ensure that the Name

Does not resemble the name of any other already registered company
Does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950) by availing the services of checking name availability on the portal
Select, in order of preference, at least one suitable name upto a maximum of six names, indicative of the main objects of the company
Once the name is chosen, then file an application for the incorporation with Registrar of Companies (ROC), along with Memorandum and Articles of Association, particulars of directors, etc.

Digital Signature – All the directors have to mandatorily obtain the digital signature.

Once the application is processed by the Registrar of Companies, they will issue Incorporation Certificate mentioning a Corporate Identity Number (CIN)

We at swasthikandco., Chartered Accountants, have good working knowledge of setting up a company in India. In case you require our services, please write to info@swasthikandco.com

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 swasthikandco., have the experience of incorporating Limited Liability Partnership firms in Bangalore. Generally, professionals such as Doctors, Lawyers prefer LLP over Companies.

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.

We can assist in registering OPC in Bangalore, India. In case you need our services, please write to info@swasthikandco.com

+ Can a foreign national form an OPC?

No. Only an Indian citizen and resident can form a One Person Company

+ Is there a restriction in setting up OPC?

Yes. An individual can start only one OPC

+ Who can start an OPC?

Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC.

For the above purpose, 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.

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

+ How many people are required to start a Trust?

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.

+ Is there any annual filing to be done?

There is no requirement for annual filing in case of Trusts. However, societies must file annual returns with the Registrar of societies.

+ Can Trusts and societies get Income Tax Exemption?

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

We at swasthikandco., have facilitated many people to set up trusts and societies in Bangalore. We have also represented at the tax department to obtain Tax exemptions.

Association of Persons (AOP) is an entity formed by two or more persons, for a common purpose with an objective of producing Income or profits.

An association of persons (AOP) or a body of individuals (BOI), whether incorporated or not, is treated as a ‘person’ under section 2(31) of the Income-tax Act, 1961. Hence, AOP or BOI is treated as a separate entity for the purpose of assessment under the Income-tax