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Rajesh (Manager)     20 September 2011

Diff between firm and company

Dear Sir,
I am planning to register one chits .We are 4 partners and planning to invest upto 8 lakhs. Please let me know if we want to register this as FIRM under Partnership Act or COMPANY under company act 1956?
 What is the difference between them ?

If i want to register my chits under Company Act 1956, what is the procedure? What are the steps?
Pls help me.


 3 Replies

Abid Hussain (Member)     20 September 2011

Dear Sir,

As per your querries it is to say that firstly you apply for name proposal under the Companies Act'1956 and then after the name is selected apply formally under the Act with a maximum Authorised Capital .

There are a lot of paper works required to be fulfilled. Just do it systematically and you will be registered.

Remember for registration under Companies Act paper work must be clear.

Atul D Suryavanshi (Attorney - JC Law Firm)     31 October 2011

Dear Rajesh,

You came across two old options and you ingored or missed third very important option i.e. LLP (Limited Liability Partnership).

If you are about to chose your working option as COMPANY, I would like to suggest yout to go for LLP. It very much cost effective, easy, Time saving and most improtantly TAX SAVING.

LLP is works under the Ministry of Corporate Affairs (MCA) as the companies works and its status is quivalent to Pvt. Ltd. Co. 

For more information, clarification and incorporation, we would like to assist you.



Atul Suryavanshi


  JC Law Firm

Email: atul@justacausa.in

Mobile - 09923552956

harpreetdhanvi (Legal Officer)     02 January 2012

LLP's are a very good option for small group of enterprenues

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