Business Consultant #6160418

Private limited is a company which is privately held by small businesses and most popular legal structure in India. For the incorporation of a Pvt. Ltd company minimum of two and maximum of fifty members are required. Private limited means that the liability of the director of company is constrained and personally any shareholder is not liable to the amount of debt and his personal assets wont be used to pay the amount of debt. The company itself is responsible for any kind of actions, Finances, and liabilities. Private limited company registration is registered under The Companies Act 2013 by the Ministry of Corporate Affairs. The Private Limited companies are most recommended types of business entity for startups and small businesses because it has the ability to raise funds, limited liability, a separate legal entity and are easy to transfer. It takes 15-20 days to register a private limited company in India, with subject to the government documents fees and client documents submission.

The Companies Act 2013 introduced this new concept of one person company registration. Such kind of entity is suitable for one person and single owners. One person company is the best option for those who do not like to work under other and want complete control over the complete. After limited company, it has become the most sought-after entity to start one-person company. The One person company registration provides the benefits of both private limited and limited liability company. It provides various advantages such as limited liability, separate legal entity just like the private limited company. If we count the number of small enterprises being set up, one proprietorship still leads because it has no cost of establishing and also has a flexible procedure to register.

Section 8 companies are incorporated under section 8 of the companies act, 2013, and are formed to promote activities such as art, commerce, science, education, sports, research, social welfare, etc. These companies functions exactly like a limited company which includes all the rights and obligations that come up with a private limited company, however, section-8 registered companies differ from other companies. The popularity of section-8 company registration in India is increasing. Moreover, the newly formed companies are getting registered as the section-8 company rather than as the NGOs or trust because section-8 companies has many advantages as compared to Trust or NGOs as they have higher credibility amongst donors, government departments and other stakeholders. And the of section-8 company registration cost is not very high.

Indian subsidiary company is the type of business entity in which a firm or share in any firm is owned by the foreign enterprises. In a broader sense it means that a company is Indian subsidiary when more than 50% of the shares are owned by the foreign firm. Many foreign companies have shown interest to start operations in India and ready to enter into the worlds fastest growing economy. Foreign entities prefer Indian subsidiary company registration because they can easily purchase the shares of any firm to enter the Indian market. Foreign entities save much of their time by directly investing in an established India company. Under the FDI policy a foreign nation can invest and start a business in India. There are two categories of making investment in India either through automatic route or approval route. In automatic route no prior regulatory approval is required for investment in the Indian company. Investment in firms where an automatic route is not permissible can be done only with the approval of Reserve Bank of India.

A producer company can be defined under the companies act 1956, which is involved in each and any one of these activities like farming, agricultural harvesting, pooling, marketing and exporting the primary produce. These companies are usually formed by the small businesses and small companies. As agriculture is the backbone of Indian economy the popularity of producers company is increasing. Around 60% of the population depends on farming as a source of employment. But still, the farmers of this country face a lot of problems.

NBFC registration is a company registered under the Company Act 1956, engaged in the business of loans, finances acquisition of the stocks/debentures/securities, chit business and issuance of insurance. NBFC refers to the Non-Banking Finance Company registration which has the principle aim of receiving deposits under any scheme in one lump sum or by instalments and by way of contribution or any other manner. NBFC India come under the purview of the Reserve Bank of India (RBI). What is the difference between traditional banks and NBFCs? NBFCs are primarily involved in lending and making investments, hence their activities are similar to that of banks; however there are a few differences as given below: NBFC cannot accept demand deposits.NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself.Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in the case of banks.

Nidhi company is the type of (Non-Banking Finance Company) and come under the preview of Reserve Bank of India. Nidhi Companies are formed under the section-406 of The Companies Act, 2013 and Nidhi Companies rules 2014. Nidhi company are much easier to formulate as compare to Nidhi Company. The objective of incorporating a Nidhi Company is to encourage savings and crediting money amongst its members. They are primarily engaged in the business of deposits and loans of its members. The term Nidhi in nidhi company means Treasurer from Hindi vocabulary. Nidhi companies are allowed to take a deposit from shareholders and lend to the members only. In simple terms the funds contributed to a Nidhi company come only from its members and are to be used only by the shareholders of the Nidhi Company. Minimum of seven members are required to start a Nidhi company and three members can be directors. An equity share of the 5 lakh rupees is required to start Nidhi company. Nidhi Company cant issue preference shares.

Microfinance institutions in India are regulated under the RBI act of 1934. A microfinance company is a type of non-deposit of Non Banking Finance institutions they are authorised to provide financial services such as loans, savings, and insurance to small businesses, entrepreneurs and need people in society. The micro-financing institution provides very cheap credit and also very low financing cost. Since the growth of the sector was unstoppable and continuously rising. The sector has nearly uprooted all the small-scale financers. We see that in recent years, the growth in the credit sector was down, but the microfinance institution registered an enormous growth of 39% on a yearly basis.

The term audit usually refers to the financial statement audit. An audit is an examination of books, accounts, statutory records, documents and vouchers of an organization to ascertain how far the financial statements, as well as non-financial disclosures, present a true and fair view of the concern. Almost all companies receive a yearly audit of their financial statements, such as the income statement, cash flow statement and balance sheet. Lenders often require the results of an external audit annually as part of their debt covenants. The rules regarding company audit are contained in the Companies Act, 2013. Under this, it is mandatory that every registered company, irrespective of its nature of business or turnover, must have its annual accounts audited each financial year.

A company is based on ownership and it can be shared or individual ownership. In order to include new investors or transfer ownership of the company, the share of any would have to be transferred. A unique thing about a registered company is that its shares can be transferred. Section 2(68) of the Companies Act 2013 provides that the Articles of a private company shall restrict the right to transfer the companys shares. Transfer of shares is restricted by the articles of association of a private limited company, the shares to be transferred first offered to the existing members of the company. The entire process of share transfer is a little complicated given stringent provisions of the company law and applicability of state stamp act which differs from state to state.

As per section 270 of the Companies Act, 2013 a company can be closed either by a tribunal or by way of voluntary winding up. The provisions of this act regulates the winding up of a company in India. The closing down of the company is the last stage of a companies existence. There can be many reasons for winding up of the company like mutual agreement among stakeholders, loss, bankruptcy, death of promoters, etc. Winding up of a company is the process through which a corporate entity is closed and it is the end of the company.