It requires a minimum capital of Rs.500000/- and includes 7 DSC’s , 3 DIN’s, MOA&AOA, PAN, TAN and certificate of Incorporation. Advantage of owning a public limited company is better access to capital, Shareholders are able to buy and sell their shares if they are quoted on the stock exchange.
LLP is a form of business operation which combines the features of a Partnership and a body corporate and on the other hand Partnership refers to an agreement wherein 2 or more persons agree to carry on a business and share profits and loses mutually. Advantage is that the partners are not liable personally and cannot be forced to pay a business debt or liability with personal property or assets. Their personal assets would be shielded from all business liability and includes 2 DSC’s , 2 DIN’s, LLP Agreement, PAN, TAN and certificate of Incorporation.
Simplest form of conducting business as minimum legal cost to start a business and no corporate tax is payable.
It is simple and easy to set up as no forms or agreements are to be filed accept the partnership deed which is document containing the basic details of the business. It has a simple operating structure and the partners have the flexibility to operate according to their needs.
The eligibility for the section 8 company registration is that the object must be charitable or to promote arts, science, commerce etc. It shall intend to apply all its profit in promoting the objectives and assures the prohibition of dividend to any of its members. Section 8 company is a non profit organisation that is why they are exempted from some provisions of the income tax. They avail the benefits under section 80 G of the Income Tax Act, 1961. They are also required to pay less stamp duty as compared to other organizations.
