Emmanual@123 (IT) 10 February 2015

It startup registration advice.

Hello all,

I work in an IT MNC & I was planning to start an IT company from last 2 years.

Now I have completed most of my home works & done with the Ideas & operations etc..

I am confused in one place, REGISTRATION!!!

Should I start it up as a Proprietorship, PVT LTD Company, or an OPC?

As per my business plan, major business area will be taking contracts/tenders from companies, gvt etc.. And I am starting up with limited fund & resources. Once get a grip in the market will expand further.

So can any one suggest which will be a better registration form for me at this current situation.

Thanks in advance,

Emmanual

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8 Replies

Jayashree Hariharan (Advocate) 10 February 2015

basically the type of registration depends upon the constitution, number of members, etc. in a company. only if you decide on that you can be clear about how to register it, whether as a proprietorship, et al.

Ritika singh (trainee) 10 February 2015

try OPC ...its a good way to be run the show and also have limited liability . you may like to read the BARE ACT of companies act ,2013 to understand the legal compliances of an OPC.

Advocate Ravinder (Advocate/Attorney) 10 February 2015

If only one member is there, One member company (private limited) will be suitable. If there are two or more members, private limited company will be suitable. Both are private limited companies only, the only difference is number of members.

Emmanual@123 (IT) 11 February 2015

Thanks everyone for your advise..

Currently I am thinking about 15-25 Employees & as I mentioned in my initial post major business area will be inviting contracts from other companies. So If I start it as an OPC or Proprietorship will it put any kind of negative impact on the credibility?

Also I have seen that OPC can be converted to PVT LTD only after completing 3 years.

Dr J C Vashista (Advocate) 11 February 2015

What do you mean by OPC? What are the rules governing OPC? Please explain for further comments.

Proprietorship firm is sole ownership with unlimited liability whereas private limited has the responsibility with a limit.

Contact, engage and consult a local lawyer.

T. Kalaiselvan, Advocate (Advocate) 12 February 2015

You take the help of a local consultant before taking any decision on this matter. If it is a sole proprietorship company, what is the need for private limited company?

Advocate Ravinder (Advocate/Attorney) 12 February 2015

When you are proposing for 15-25 employees, private limited company will be suitable. I cant understand how will you start proprietorship company/OPC with 15-25 people. Your query is confusing.

Emmanual@123 (IT) 13 February 2015

Hello all,

When I say 15-25 people, I am talking about employees, not share holders or directors. Again, The reason I was thinking about OPC (One Person Company) is I can get it done with one director, shareholder & star the company. And in case if I want to start it as a PVT LTD I can get 2 Directors. I have no issues with that. I heard that PVT LTD has lot of formalities to do, so at this point of time which one would be better for me, PVT LTD, OPC or prop considering the fact that I am new to business, what ever I have right now, all those are in my mind and papers. I don't know how its going to work in real world. I am not able to take a decision on that & need advise from you guys..

Also my other question here is If I start my company as an OPC or Proprietorship will it impact credibility of the company. As my major business area will be taking tender & contracts from other companies.