Set up a company in India

I have some business ideas to which I want to give shape. usually I do not trust outsiders, so decided to form the company with my brother.
Before doing that I need to form a company. different people have different opinions on the nature of company to be formed. Some adviced a LLP - limited liability company and some suggested a Private limited company.

I am still confused... Anyways below is what i learnt from - http://www.mukeshraj.com/how-to-open-company-in-india.html


How to setup a company in India


Steps to be taken to get incorporated a private limited company:-

•Apply for DIN (Director Identification Number) Documents Required: Identity and Address proof and one passport size photo of the proposed directors.[information required about directors are Name, Father's Name, Date of Birth, Nationality, Present Residential address, Permanent Residential address]

•Apply for Digital Signature Documents Required: Identity and address proof of the any one proposed director

•Apply for the availability of the name (Suggest 3-4 name for the new company)

•Drafting of Memorandum and Article of association

•Pay Stamp Duty on Memorandum and Articles of Association (Now you can pay stamp duty online electronically also)

•File the documents for Company Registration (Form 1, Form 18, Form 32, Power of attorney)

•Get the Registration Certificate through email and speed post.


Additional Steps to be taken for formation of a Public Limited Company

Consent of Directors to act as such in Form No.29.

•Arrange for payment of application and allotment money by Directors on shares taken or agreed to be taken.

•File the statement in lieu of prospectus with ROC in schedule-iv of the Companies Act.

•File a declaration in Form-20 duly signed by one of the Director.

•Obtain the Certificate of Commencement of Business.



Other Requirements of the private limited company:

•There should be at least to directors of the company.

•The two directors will be the subscriber of the memorandum and they subscribe the minimum capital.

•Minimum capital for a private company is INR 1,00,000/-

•Registration fee is depending upon the authorized capital of the company. It should be equal or more than the subscribed capital of the company.

•Regarding non-resident interest in the company Foreign Exchange management Act is controlled all the issue. You can invest up to 100% depending upon the type of industry.


Tax related benefits - LLP or Private ltd company?


The key difference that affects the view of many start-up businesses is the tax treatment of the owners (members). In a traditional LTD the Directors (who are also usually the sole shareholders in a start-up company) are treated as employees of their own company. This means that their salary is subject to personal Income Tax and National Insurance and employers’ NI contributions. Profits left in the company (not withdrawn as salary) are subject to the (lower) Corporation Tax rate.



The members of an LLP pay Income Tax as self-employed persons, so there is no employers’ NI to pay. On the other hand, ALL the profits of the company are regarded as the members’ income and are subject to Income Tax.

So the balance of tax advantage depends on how much profit the company might make and how much the owners pay themselves.

 
Can any one guide me further