STRUCTURE YOUR BUSINESS

LIMITED LIABILITY STRUCTURES

Limited Liability Partnership (LLP)

» Minimum 2 Designated Partners;
» Minimum 1 Resident Designated Partner;
» Minimum 2 Partners;
» Capital Contribution - Can be started with Rs. 5,000/- Capital.

One Person Company (OPC)

» Minimum 1 Director and Shareholder, being a resident;
» Minimum 1 Nominee;
» No minimum Authorised Capital requirement;
» No minimum paid up capital requirement. However, minimum 1 share is required to be subscribed by 1 subscriber.

Private Limited Company

» Minimum 2 Directors;
» Out of 2 Directors, minimum 1 Resident Director;
» Minimum 2 shareholders / subscribers;
» No minimum Authorised Capital requirement;
» No minimum paid up capital requirement. However, minimum 1 share is required to be subscribed by 2 subscribers/shareholders.

Public Limited Company

» Minimum 3 Directors;
» Out of 3 Directors, Minimum 1 Resident Director;
» Minimum 7 shareholders / subscribers;
» No minimum Authorised Capital requirement;
» No Minimum paid up capital requirement. However, minimum 1 share is required to be subscribed by 7 subscribers (shareholders).

SPECIAL ENTITY STRUCTURES

Section 8 Company

» Not for Profit Company;
» Minimum 2 Directors - Minimum 1 Resident Director;
No minimum Authorised Capital requirement;
» No minimum paid up capital requirement. However, minimum 1 share is required to be subscribed by 2 subscribers;
Benefits under Section 12A & Section 80G of Income Tax Act.

Nidhi Limited Company

» Can accept deposits and lend money to its members only;
» Granted exemption by RBI for complying with the core provisions of NBFC;
» Needs to ensure that it has minimum 200 members within a year of formation;
» Formed with a minimum of Rs. 5 Lac Equity Share Capital.

Producer Company Limited

» Members are primarily the producers like farmers, milk producers, fishermen, weavers, rural artisans, craftsmen, etc;
» Mainly Opted by Farmer Producer Members;
» Can avail tax benefits - 100% tax free income from agricultural produce;
» Named as Producer Company Limited. However, they are always subject to Private Limited Company provisions;
» Financial Support from NABARD & support from the Small Farmer Agribusiness Consortium (SFAC);
» Minimum 5 Directors required. 10 Farmer Producer Members or 2 or more Producer Institutions or combination of both.

RBI REGISTERED

Non Banking Financial Company (NBFC)

» Registered under the Companies Act, 2013 with a minimum net owned fund of Rs. 200 Lakhs;
» Need to obtain a license to operate as a NBFC from the Reserve Bank of India (RBI);
» Majorly engaged in the business of loans and advances, deposits, investment funds, chit funds, acquisition of shares/stocks/debentures/bonds/securities issued by Government or local authority or other marketable securities of a like nature, insurance business, hire-purchase, leasing.

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