There is no limits requiring mandatory company based on capital contribution or sales turnover . An business with any amount of capital or turnover can be managed as a partnership or proprietorship or private limited company or limited liability partnership . The companies act 2013 needs mandatory company registration for certain partnerships.
Mandatory Registration Requirement
Partnership firm or association having more than 100 persons for any company must required to registered as a business. As per section 464(1) of the companies act 2013, partnership or association containing 100 persons or more than. They shall be created for the plan of carrying on any business that has for its objects the addition to earn by the individual members or partnership or by the association thereof. Unless it is registered as a company.
Limited Liability Partnership (LLP)
The rules needs mandatory company registration. It does not need to relate for those businesses manage as a Limited Liability Partnership (LLP). One of the important benefits of LLPs is allowed to have unlimited partners. It is not applicable for LLP. An LLP can have any amount of sales capital or turnover.
Hindu Undivided Family
(HUF) is one of the business entity in India which includes of persons lineally descendant from a common ancestor containing their unmarried daughters and wives. The persons in a Hindu Undivided Family (HUF) are joint in worship, food and estate.
The needs of convert a company does not arise for association of partnership. It is created by the professionals who are managed by special acts. Professional governed by special act contains lawyers, company secretaries, cost accountants, chartered accounts and others.
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