Difference between the registered company and unregistered company with respect to their nature, legal rights and duties

Difference between the registered company and unregistered company with respect to their legal rights and duties 

Point of Difference	Registered Company	Unregistered Company
Legal Status	Separate legal entity, incorporated under the Companies Act.	Not a separate entity, exists only through its members (proprietor/partners).
Liability	Limited liability of shareholders.	Unlimited liability (personal assets of members can be used to pay debts).
Perpetual Succession	Exists permanently irrespective of death/exit of members.	Dissolves if members die, withdraw, or dissolve agreement.
Ownership Transfer	Shares can be transferred (with restrictions in a private company).	Difficult transfer; often requires dissolution or new agreement.
Legal Recognition	Can sue/be sued in its own name; can own property.	Cannot sue/be sued in its own name; property is in members’ names.
Taxation	Taxed as a separate legal entity.	Taxed in the hands of proprietor/partners.
Compliance	Must follow strict compliances (ROC filings, audits, meetings, etc.).	Minimal compliance requirements.
Credibility	High credibility with banks, investors, government.	Lower credibility; relies mainly on personal reputation.
Fundraising	Can raise funds via shares, debentures, institutional loans.	Limited fundraising options; mostly personal funds/loans.

Job Security	More stable; company continues even if owners change or die.	Less secure; business may close if the owner dies or decides to stop.
Employment Rights	Employment contracts are enforceable; employees can sue the company (not just the owner).	Employees can sue only the proprietor/partners personally, which may be harder.
Salary Payment	Higher chances of regular payment due to organized structure and compliance.	Salary depends directly on owner’s finances; risk of delay or non-payment is higher.
Provident Fund, ESI & Benefits	More likely to provide PF, ESI, gratuity, and statutory benefits (due to legal compliance requirements).	Often avoids or skips statutory benefits; employees may lose social security coverage.
Career Growth	Structured hierarchy, promotions, and training programs.	Limited growth opportunities; depends on the owner’s personal decision.
Credibility of Experience	Experience certificate from a registered company carries more weight with future employers.	Experience from an unregistered firm may have less recognition.
Legal Protection	Employees can approach labor courts, company law tribunals, etc., if rights are violated.	Limited legal protection; remedies are slower since claims are against individuals, not a corporate entity.
Work Culture & Policies	HR policies, code of conduct, leave rules, and grievance mechanisms usually exist.	Informal setup; rules and policies depend on the owner’s discretion.
Perks & Facilities	More likely to get health insurance, bonuses, allowances, etc.	Usually no formal perks; only salary is given.

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 The major factor behind the rising divorces in today's scenario is the misrepresentation of the "EGO" with "SELF-RESPECT". The words like 'I' ,'me' and 'mine' works like cherry on top. If the parties sit together and discuss out with a lawyer or a counsellor they would find that there are no legitimate reason behind their feud. 

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The effect of pandemic just economic or has affected the personal lives too?

Has the pandemic only affected us economically or has it created a ruckus in the lives of the people as well? is a question that pops into majority of our minds.

Even though there were gossips about this virus here and there in the month of December 2019, but the influence and terror of this was felt in the month of March 2020.

Here one can draw a similarity between corona virus and the Gabbar Singh of Sholay who used to make his appearance on auspicious days. This villain made his entry in the beginning of New Year, since then has been ruling over us.

The outcome  has resulted in temporary shutting down of many small scale and large scale industries, factories, retail shops, offices, schools, colleges, courts, even the street vendors, etc… who used to earn on a daily bases. All the public and private transportation came to halt. It has left many people temporarily unemployed and others permanently.

It would be unfair to quote only the damages while there were few good things that happened in the environment parallel to this lockdown.

It seemed like as a result of lockdown the nature went into a factory set up mode. There was a drastic change in the environment whether it’s in reference to the quality of river water, or it’s the climatic change. Whether it’s the improved quality of air we breathe or the appearance of life in the nature that were once considered to have been extinct.

In personal terms the lockdown has resulted in the erasing the distance between the family members.  Now the dining table is no more just a furniture that has been placed somewhere in the corner of the room, it has now turned out to be a conference table where serious discussions take place. It has turned out to be a place where old memories are refreshed and are expressed as stories to the young generations with a tagline “yeh toh humaarein zamaane ki baatein hai, tum log kya jaano tab ki life kaisi thi”.

Same table also became a witness and a platform for all those emerging chefs who used to visit kitchen only to see what was been cooked.

At some places the same has turned out to be a reason for stress, fights, sorrow and agony.

There is an increase in the level of financial instability resulting in family disputes and suicides. Pressure from financial institutions to avail regular EMIs, threatening the borrowers to take legal actions against them. Landlords putting forth the demands of advance payments and forcing the poor or the helpless tenant to search for a place to hide and protect himself during the pandemic.

Daily wagers and laborers who used to earn on a day to day basis are today on the streets without food, money and shelter.

In between all these we should not forget of doctors and medical staffs who are fighting for us at the frontier and helping to save our lives as we as of those who are affected by this virus.

Being a citizen of this country and beyond that being born as a human being it’s our duty and responsibility to show humanity towards our fellow human beings and the poor animals.

Yes, it’s true that sitting at home and restricted movements make us frustrated and less tolerant.

But we all can fight this situation as a one by staying at home, and helping those in need as per our ability and capacity. Not every problem but definitely a few can be resolved by Mediating and spending time with the family.

Good and bad both are within our reach and now it’s upon us which one are we going to choose.

Who knows, a few minutes of heart to heart conversation of today can turn of to be a strong pillar for tomorrow’s happy family!

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Preface

Justice is well-served when a wrongdoer gets punished for his wrongful conducts. 

On the contrary when an innocent is made the victim of an injustice, it opens doors for wrongdoer to continue his wrongful act in a more optimistic manner. 

Here I would like to quote one of the well-recognized lines by American- British novelist Raymond Chandler:

 "The law isn't justice. It's a very imperfect mechanism. If you press exactly the right buttons and are also lucky, justice may show up in the answer. A mechanism is all the law was ever intended to be."

Law is never in-just with anyone, but like the famous movie lines states" the lady of justice has her eyes blind folded" relieves on evidence and facts in order to render justice. at times in the process of rendering justice on the basis of the evidence and facts pleaded and presented before her, she quotes judgement in the favor of the wrongdoer. 

Some times the same wrong happens due to bizarre circumstances such as, economic backwardness, lack of legal aid and at times due to the lack of  general awareness. 

What is their in someones fate cannot be altered by any human but as a legal practitioner and a counselor we can provide the aggrieved with shield. a shield that will protect him/her from any further legal damages that they might incur in the future. 

The essence behind this blog is to share insightful fundamental knowledge about most recognized and important legal terminologies. 

The blog will also focus on various categories also to provide legal help to all those suffering from one or more legal problems, these includes:

- Family disputes
- Matrimonial Disputes
- Criminal Matters
- Money Suit
- Wills and Affidavits
- Many more, mostly related to Disputes

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