Compliance

  Limited Liability partnership

Limited Liability Partnership Members' liability in these companies is limited to the nominal share number stated in the Memorandum of Association. The shareholder cannot be found accountable or required to pay more than the amount of money he or she spent in the firm. Limited Liability Partnership The members' responsibility of a private limited partnership limited by guarantee is limited to the amount of liability each member undertakes in the Memorandum of Association. As a result, members of a Private Limited Company Limited by Guarantee cannot be found liable for a sum in excess of the amount of guarantee performed by the partner in the Association Memorandum. Furthermore, the shareholder's guarantee in a Limited by Guarantee corporation can be obtained only in the event of the company's dissolution. When a Corporation Limited by Contract is a going concern, the members' guarantee cannot be revoked.

  Proprietorship

specific laws. Under sole proprietorship’s, the compliance’s are minimal and easy to fulfil. Sole Proprietorship means a business carried on by one person. The decision making and management of the business is in the hands of a single person. A permit or license issued by local authorities in compliance with the Shop and Establishment Act. The Certificate of Practice, which is issued by the Institute of Chartered Accountants of India, is a certification issued by registering authorities. The Central Government or a State Government Authority/Department, for example, issues the registration/licensing document in the name of the patented concern. Banks may also recognize the IEC (Importer Exporter Code) given to a proprietary concern by the DGFT office as an identification document for opening a bank account, among other things.

  Partnership

A General Partnership is a type of corporate structure in which two or more people administer and run a company in compliance with the terms and goals outlined in the Partnership Deed. Since the partners have unrestricted responsibility, which means they are collectively responsible for the business's obligations. "Partnership" is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Persons who have entered into partnership with one another are called individually."partners" and collectively "a firm", and the name under which their business is carried on is called the "firm-name. The relation of partnership arises from contract and not from status; and, in particular, the members of a Hindu undivided family carrying on a family business as. such, or a Burmese Buddhist husband and wife carrying on business as such are not partners in such business.

  Private Limited Company

As the name suggests, a private limited company is a privately-held business entity. It is held by private stakeholders. The liability arrangement in a private limited company is that of a limited partnership, wherein the liability of a shareholder extends only up to the number of shares held by them. The shareholders cannot be held liable beyond the value of the shares. The governing body for such a company is the Ministry of Corporate Affairs (MCA). Section 2 (68) of the Companies Act, 2013 defines a private company as: “A Company having a minimum paid-up share capital as may be prescribed, and which by its articles,— (i) restricts the right to transfer its shares; (ii) except in case of One Person Company, limits the number of its members to two hundred; (iii) prohibits any invitation to the public to subscribe for any securities of the company.”

Section 11: Comments on the commencement of Business which clearly states that before starting to function the company has to file with ROC a statement that minimum paid-up capital (one lakh for the Private company) has been brought in while Section 73 prohibits Pvt Ltd company to take any unsecured loans or deposits from relatives of Directors.

  Foreign Subsidiary-

A company where 50% or more of its equity shares are owned by a foreign company is a foreign subsidiary company. The foreign company in such case is called the holding company or the parent company.Compliance's are based on the company that is incorporated. Hence, it is necessary to understand what complaisance are supposed to be met according to the type of the company, the operations of the industry, annual turnover, number of employees, etc.Foreign subsidiary companies are mandatory required to maintain compliance according to the Income Tax Act, Companies Act, Transfer pricing guidelines, and FEMA guidelines.The foreign subsidiary compliance includes income tax filing with the income tax department, annual return with the ministry of corporate affairs, and other filings with the authorities like the Reserve Bank of India or the securities and exchange board of India (SEBI).All the companies even foreign subsidiaries will have to comply with other Indian tax regulations like the TDS, GST regulation, PF regulation, ESI regulations, and others. The compliance requirement for a foreign subsidiary company would differ based on the industry, state of incorporation, number of employees, and sales turnover.Foreign Direct Investment of up to 100% is allowed into an Indian private limited company and limited company for most of the sector. The amount of FDI in India has increased manifold over the last few years due to a booming economy and welcoming environment for foreign investors.