What is the Applicability of Corporate Social Responsibility for Private Limited Company?

Corporate Social Responsibility is mostly the concept of Trusteeship. Corporate Social Responsibility is needed for all companies from private Limited company to limited companies. For the development of the stakeholders, the Corporate Social Responsibility plays a vital role. When an entrepreneur had taken fund from the public, it should be returned back in the same condition as taken from them to run their business.

Companies who have a net worth of 500 crore or more and a turnover of 1000 crore or more and the net profit of 5 crore or more are those companies who come under the applicability of Corporate Social Responsibility law. If the amount to be spend for Corporate Social Responsibility does not outdo Rs. 50 lakhs, in that case there is no requirement for the formation of Corporate Social Responsibility and the function of such committee can be held by the board of the company.

The motive of Corporate Social Responsibility is to secure of some activity for the society. Eradicating poverty, hunger, availability of clean drinking water, special education for children, promoting gender equality, women empowerment, setting up of old age home, proper sanitation are some of the policies which fall under the Corporate Social Responsibility.

How is (OPC)One Person Company different from Sole Proprietorship?

The conception of One Person Company permits a single person to run a company limited by shares. In case of sole Proprietorship body, there is no difference between owner and the business. It is run and owned by one individual. In case of One person Company, the owner and the business are observed as two different organization whereas in case of Sole Proprietorship the owner and the business are characterized as a single organization.

The owner’s liability is limited to his or her investment in the company in a One Person Company (OPC). The liability is unlimited in the case of Sole proprietorship. If there is a loss in the organization then the owner is liable for all the loss. A OPC is registered as a Private Limited Company hence tax has to paid under the Income Tax Act based for private companies. In the situation of tax payment for a Sole proprietorship, the tax is based on an individual’s income, as the income generated by the company is treated as the owner’s income.

On the death of a member of the One Person Company, a nominee can be allocated to run the company, who should be a Indian Citizen an a resident of India. In the case of Sole Proprietorship, with the death of the owner, the business ends there. However, ownership can be passed only with the Will of the owner, if he had executed such Will.

What is the Limited Liability Partnership?

Limited Liability Partnership is a combination of both partnership and corporation. Limited Liability Partnership is a corporate business form which provide the benefits of limited liability to the partners at less compliance costs. LLP protects the owners from financial liability. There is a flexibility of partnership in Limited Liability Partnership. There is no requirement of Minimum Capital Contribution in LLP.  There is less restrictions and compliance imposed on a LLP by the Government as compared to the restrictions imposed on a Company.

The Limited Liability Partnership can continue its existence even if there are changes in partners. LLP is capable of going into contracts and holding property in its own name. A LLP can incorporate minimum 2 number of partners. There is no maximum limit on the number of partners of LLP. There should be a minimum of two designated partners among the partners who shall be individuals, and any one of them should be a resident in India. The cost to form a LLP is low as compared to form a public or private limited company. The deference to be followed by the LLP is also low. Only two statements need to be filed annually, one is the Annual Return and a Statement of Accounts and Solvency.

What are the Documents Required for Private Limited Company Registration?

Company Documents Required

  • Registered office address proof (Phone Bill, Electricity bill, the gas bill that should not be older than 2 months)
  • Name of the company chosen
  • Percentage of shareholding between subscribers
  • Mobile number and e-mail id of directors
  • Qualification and place of birth of directors
  • The activity of the company
  • Share Capital- Authorized and Paid up.

Director’s Documents Required

  • Copy of Voter Id card/ Driving License/Passport (self-attested)
  • Copy of Pan Card (self- attested)
  • Copy of address proof (Electricity bill, phone bill, a bank statement that should not be older than 2 months)
  • Photographs of Director’s

What are the Documents Required For OPC (One Person Private Limited Company) Registration ?

List of Required Documents:

  1. ID proof of the company director: Any one of the following documents:
  • Voter ID
  • Passport
  • Driving License
  • PAN card
  • Aadhar Card

2. Address proof: Any one of the following documents:

  • Bank Statement
  • Utility Bill (Any Type)

3. Photographs: 3 passport sized photographs are required.

4. DIN details: Any future director of any type of company has to get a Director Identification Number.

5. DIR 2 form: It’s the consent to act as the director of a One Person Private Limited Company.

6. Digital Signature Certificate: DSC to authenticate the documents that will submit online.

7. Address proof of the office: Following are the documents required of a One Person Private Limited Company:

  • Property Registry Documents
  • Rent agreement.