Overview
The choice of entity affects liability, taxation, compliance cost, the ability to raise funds and how ownership can change later. It is easier to choose well at the start than to restructure afterwards.
The firm assists entrepreneurs, promoters and investors in comparing the options — company, LLP, partnership, proprietorship, trust or society — and then with incorporation, initial registrations and early compliance. Where shareholders or partners are non-residents, foreign exchange regulations and India's foreign direct investment policy also need to be considered.
When it is typically needed
- Starting a business and deciding which entity to form
- Bringing in partners, investors or family members as owners
- Converting a partnership or proprietorship into an LLP or company
- Closing a dormant company or restructuring a group
Scope of work
Company incorporation
- Private limited companies
- Public limited companies
- One Person Companies (OPC)
- Section 8 companies
- Nidhi companies
Non-corporate set-up
- Proprietorships
- Partnership firms
- Limited Liability Partnerships (LLP)
- Associations of persons (AOP)
- Trusts and societies
Structuring advisory
- Entity selection
- Ownership planning
- Tax-efficient structuring within the law
- Business conversion advisory
Post-incorporation support
- ROC/MCA compliance
- Statutory records
- Board resolutions
- Initial registrations
Closure and restructuring
- Strike-off
- Business closure
- Conversion
- Restructuring support
Terms explained
For readers less familiar with Indian tax and regulatory terminology.
- MCA / ROC
- Ministry of Corporate Affairs and the Registrar of Companies — the authorities with which companies and LLPs are registered and file returns.
- OPC
- One Person Company — a company with a single member, available to eligible individuals.
- LLP
- Limited Liability Partnership — a body corporate with partners whose liability is limited, governed by the LLP Act, 2008.
- Section 8 company
- A company formed for charitable or not-for-profit objects that applies its income to those objects.
- Nidhi company
- A company formed to accept deposits from and lend to its members, subject to the Nidhi Rules, 2014.
Scope and limitations
- No single structure suits every business, and none produces a particular tax outcome in all circumstances. Recommendations depend on the facts and the law at the time.
- Registrations and approvals are granted by the relevant authorities.