Sole Proprietorship and OPC Business Registration Structure in India

Setup of every small to big company is an overwhelming task which needs manpower and effective utilization of resources. While making a company registration, several things need to be taken into consideration. The company registration in India is an entangled pressure process that gives a sense of accomplishment.  

 

Legalization of your company:


As per government laws, the company registration services step-by-step guidance for different types of companies is provided. Some legal paperwork’s, license and certificates are also required based on the type of company registered, owner’s liability, tax code, sale permit, etc.  

 

Selecting the business model:


The first and foremost thing is to understand the business entity and evaluate the structure; it defines the business characteristic, business law, and current situation. Since every business works differently and has a different structure, several considerations are there to provide a clear idea about the operation:

  • Making decisions
  • Liabilities involved
  • Profit and Loss share
  • Tax profits

As per the company registration in India, detailed below are the structure for sole proprietorship and one person company registration. Although these two terms sound common, but there are a few differences which make a vast difference in legal terms. 

Sole Proprietor: 
It is a prevalent and common way of business startup. It is owned and carried by an individual, where no separate registration service is needed. Here an individual is represented as a business.
Under a sole proprietorship firm, an entrepreneur (sole individual has unlimited liability and needs a PAN license under Shop & Establishment Act, registered address and capital. After the implementation of GST for the smooth functioning of a business,
GST registration is required if the turnover exceeds Rs. 20 lakhs. A GST number is provided in 3-4 days through GST portal once the application is submitted. A verified bank detail, photo, and Aadhar card copy are required.

Under Sole proprietorship, one can also get registered under the MSME act as SME (Small and Medium Enterprise) by filling an application electronically or by taking help of the outsourcing professionals. 

One Person Company: 

Many Individuals choose to have of a small enterprise to deal in providing services and sale of goods in the form of a Company where it has a limited liability to the extent of its un-paid share capital in a Company. In such type of organization one single person can control the entire affairs of the Company and its Board of. Such type of company is incorporated online under the provisions of the Companies Act, 2013 as a Private Company.

Although it isn’t compulsory to register as an SME, it is highly beneficial, especially at the time of taking a loan for the business. The Government runs various schemes for SMEs where loans are provided at the concessional rate of interest. Such business is limited only to the residents of India and Indian citizens. Some common examples of OPC are for those who are involved in agriculture, forestry or those who are artisans etc. If a company earns more than 2 crores, it has to get registered as a Private limited company, about which we will discuss in detail in our next article.  
Being an OPC, it offers a distinct identity with minimal compliances.  

The primary difference between Sole Proprietorship firm and OPC:

  • No registration required to start a sole proprietorship, whereas, incorporation is mandatory for an OPC. 
  • A sole proprietorship is controlled by a single individual and is taxed as an individual under the Income Tax provisions, whereas under OPC is also controlled by a single individual, and 30% profit as tax rate + cess and surcharge is levied as taxation.  

Importance of hiring an expert for company registration services:

Other than sole proprietorship and one Person Company, there are several more types of the company like the limited liability partnership firm, Private limited company, and public limited company. Since the identification of your company is essential for registration, starting from scratch your company could be best defined and registered by the experts. It offers ease in operation, saves time and efforts. As the compliance service provider, experts like https://legaljini.com/ have complete knowledge of required documents and procurement that helps in company growth. They help in making proper business plans, certificate, and documentation at affordable and reliable rates.  

For a stress-free and proficient service, the professionals help in quickly setting your company.  

Comments

Post a Comment

Popular posts from this blog

Trademark Registration Process in India

Image
In India, the trademark registration process involves protecting the mark of a person or a company, that is, the logo, name, mark, word or phrase used to represent the products or services of the public. Trademark registration protects the owner's legal rights against unauthorized use or infringement by a third party. However, the trademark registration process is complex and has complexities. From filing a trademark registration application to issuing a trademark certificate through the Registrar's Office. LegalJini is the leader in Trademark Registration offering a variety of trademark services in Mumbai . The trademark registration process in India includes the following steps: Trademark Search: Before filing a trademark application, it is important to conduct an online trademark search to ensure that the mark of the existing registered trademark is not infringed and that it meets all of the valid trademark guidelines in India. T
Read more

All about Company Registration in India

Image
If you are planning to start a business in India, the first and foremost step is to establish a legal entity in India by registering your business in accordance with the applicable provisions of the Companies Act, 2013 Legaljini offer company registration  services , company formation, Company Secretarial Services, private limited company and public limited company registration As a startup, you have various options to include your business, such as Seoul Proprietorship, Partnership Firm, One Person Company, Limited Liability Partnership, Private Limited Company and Public Limited Company. You must register your business before starting any business. The first step is to decide what type of business you want to choose for your business in the different types of business structures available in India. Private Limited Company is the most popular type of business. The company registration process is online and registration of a private limited company requires at least two
Read more

Best Legal Process Outsourcing Companies in India

Image
Legal Process Outsourcing (LPO) is a lesser-known idea among the non-lawful network. Whenever any individual hears the term LPO, their psyche promptly attracts parallel to the better-known idea of BPO. Pictures of call focus loaded up with adolescents chattering endlessly on the telephone in American intonation moves quickly over. We all know that every business needs everyday just as occasion-based legitimate help from in-house group or law offices. Therefore, Legaljini is the best   Legal Process Outsourcing Companies in India   which has group of attorneys that can prompt and help you under outsourcing model for different issues like issue of notices, legal research, drafting of contracts etc. So, for these kind of issues the best option is to choose Legaljini.
Read more