A private limited company is one of the ways to start your business in India. It is considered as best form of business which also secure your personal assets. It is most recommended form for startup in India to raise funding, ESOPs etc.
Who can start a LLP Limited Liability Partnership Company in India?
# Students: Students over and above the age of 18 can form any type of company in India.
Employees: Employees are generally not allowed by their employers to form a company and be a director. They may hold shares but cannot take position as director. If you want to open a company, then check your employment agreement and you may also seek permission from the respective employer.
# Person with criminal background: Though they are not barred to form a company, however, they need to give various declarations to the ROC.
How to raise funding in a LLP Limited Liability Partnership Company?
Build a plan and a working business model: Gone are those days when you can get funding on the basis of an idea.Now, is the time, that you should test your own idea, reach a MVP and then build a strong future plan.
Reach investors and sign the term sheets: In this step, you must reach different investors and explain them your model, future plans and how they can earn if they invest into your business.
Prepare Documents: Once you sign the term sheet, next and final step is to prepare documents like Shareholder agreement etc.
Mandatory Compliances after LLP Limited Liability Partnership Company Registration
BM : Every private company needs to call minimum 4 board meeting as per the Companies Act, 2013.
Filings : A company needs to file MGT 14 from time to time. Also, needs to prepare some statutory registers.
Annual : This is most important where annual filing needs to be completed within time.
How to choose Company name for LLP Limited Liability Partnership Company Registration?