A corporation is an organization that usually consists of a group of individuals with the major objective to earn profit. The business works in various ways and sets several objectives according to which the company operates and functions.
Separate legal entity – The existence of the corporation is different from its owners.
Limited liability – The business has a limited liability. The owners of the company are liable to the company only up to the amount invested by them.
Easy transfer of shares- The shares can be easily transferred in case of a corporation
A C Corporation is a type of corporation that contains all types of features of a corporation. The business owners of a C Corporation receive profits and are taxed individually.
S Corporation is the type of corporation that contains 100 shareholders and the rules regarding taxes are also different in the case of S Corporation. The profits and losses are shared in an equal ratio by the shareholders.
The objective of a non-profit corporation is the welfare of individuals and the under privileged members of the society.
There are several steps involved in company registration process and the first and the most significant of the steps is to acquire a Digital Signature Certificate (DSC), and Director Identification Number (DIN) for signing and verification of documents.
The next step in the public limited company registration process is to obtain a name for the company. The applicant must apply for name approval by filling an e-Form and ensure the name’s availability. The company can recommend two names along with the prescribed fees of Rs 1000.
Both the MOA and AOA are essential documents that must be submitted to the registrar.
After the newly incorporated Company receives a certificate of Incorporation, the last step is to acquire PAN and TAN.
At this step, the applicant must fill an application in Form SPICE 32 for the incorporation of a Public company along with presenting all the essential documents requested by the registrar.
The company must create a bank account. A current account will be created in the company name before the company starts its business activities.
A business entity is defined as an organization that is established by one or a group of individuals to undertake various business activities.
LLC is a type of company in which the owners are not liable for the debts and liabilities of the company. Limited Liability Companies are hybrid entities and it is a combination of a sole proprietorship and partnership.
Following are the steps to follow for limited liability company registration process –
More flexible
Limited Liability Company (LLC) showcases more flexibility as compared to a corporation.
Tax saving opportunities
Limited Liability companies turn out to be more tax saving as compared a corporation. It involves in activities that saves a lot of tax.
Ownership
A Limited Liability company is owned by two or more individuals whereas a corporation is fully owned by its shareholders.
The individuals form a company by taking into consideration several factors, advantages and features. The comparison of companies is done well in advance and the company that would serve more benefits is chosen.