Insurance
To Insure is to protect and indemnify. It doesn’t mean prevention of loss.
Insurance acts like a protector from any unexpected situation which might affect normal lifestyle or well-being. It can be classified mainly in two types.
-
- Life Insurance – Term Insurance
- General Insurance – Examples
- Marine Insurance
- Property Insurance
- Commercial Insurance
WAYS TO START BUSINESS IN INDIA:
| Features | Sole Properties | Partnership | Limited Liability Partnership (LLP) | Private Limited Company |
| Starting up | No registration required | Registration is optional | Mandatory Registration | Mandatory Registration |
| Business Name | No approval required. Should not infringe trademark or copyright | No approval required. Should not infringe trademark or copyright | ROC Approval required prior to incorporation | ROC Approval required prior to incorporation |
| Separate Legal Status | Not a legal entity | Not a separate legal entity | Separate legal entity | separate legal entity |
| Foreign Nationals – As Partners /Directors | Not allowed | Not allowed | Allowed. Min 1 resident partner needed | Allowed subject to certain rules |
| Persons | One | Min: 2,Max : 20 | Min: 2,Max : No Limit | Min: 2,Max : 200 |
| Repatriation | Not allowed | Not allowed | Not allowed | Allowed |
| Charter Document- Registration Document | GST Registration,
Udyam Registration |
Partnership Deed | LLP Agreement | Memorandum of Association (MOA) AND Articles of Association (AOA) |
| Validity | Till death of owner | Dissolved on death of a partner. Can be dissolved at the will of all partners or even one partner can give notice for dissolving. | Perpetual Succession | Perpetual Succession |
| Registering Authority | None | Registrar of Firms | Registrar of Limited Liability Partnerships, MCA | Registrar of Companies, MCA |
| Compliance Requirements | Low | Low | Moderate | High |
| Income Tax Rates | Individual rates | 30% | 30% | 25% – Different Rates Applicable based on exemptions |
| Liability | Unlimited Personal Property is also covered |
Unlimited Personal Property is also covered |
Limited upto contribution LLP (except in case of Fraud) |
Limited upto extent of shares hold (except in case of Fraud) |
| Capacity to Sue | Individual level | As a Firm (in case of registered firms).Individually/Collectively (in case of not registered firms) | As a Firm | As a Company |
| Market Reputation | Low | Low | Moderate | High |
| winding up/Dissolution | Easy | Easy | Prescribed process to be followed | Prescribed process to be followed |
Other start up ways: Hindu Undivided Firm (HUF), Foreign Company, Public Ltd. Company, etc