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POEM Guidance For Companies Not Engaged in Active Business Outside India

by Sanjeev Archak Sanjeev Archak No Comments

Previously we discussed the parameters of determining a company to be considered as engaged in “active business outside India” and the POEM guidance associated with it. Today we talk about the guidelines for those companies that are not engaged in active business outside India.

POEM Guidance for companies not engaged in active business outside India

For companies not engaged in active business outside India, a two-stage process for the determination of Place of Effective Management is provided as follows:

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5 Reasons to Register a Private Limited Company in India

by Sanjeev Archak Sanjeev Archak No Comments

Previously we spoke about the fundamental differences between a Pvt Ltd company and an LLP and the factors one needs to take before choosing the right entity for your business. Today we go 2in depth about the important reasons why one should register a Private Limited Company in India.

The most popular choice of corporate legal entity in the country, a private limited company is registered under the governance of the Companies Act, 2013 and the Companies Incorporation Rules, 2014. A minimum of 2 directors and 2 shareholders are needed to register a company under a private limited entity. A corporate legal entity can be a shareholder only while a natural person can be both a shareholder and a director. Read more

What is Better for a Startup – LLP or Pvt Ltd

by Sanjeev Archak Sanjeev Archak No Comments

The first legal step towards starting a new startup venture is choosing the right entity for registering their business. Be it a Private Limited Company or a Limited Liability Partnership (LLP). Founders often find themselves stuck at making this kind of decisions as the right choice would determine the nature of the ownership and the management process. It would further set the tone of the various compliances that needs to be followed, be it LLP or Pvt Ltd.

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