Kind of business structures can be made in India

Kind of business structures for setting up an entity in India 

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www.carajput.com; Business structure in India

The most important thing to do when beginning your own company is to comply with the legal requirements to ensure the safe functioning of your business enterprise. Registration of a corporation is the first step in the process that gives you legal permission to operate a business. It requires compliance with a set of regulations set out in the Companies Act.

Company incorporation is the primary method that all company owners need to conduct. The Companies Act 2013 sets out the various forms of companies that can be established in India.

So before you move on to the company registration process, take a look at the various types of companies in India that you can register.

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1) One Person Company

One Person Company is the new entrant to various types of companies registered in India. It was implemented under the Companies Act 2013 for the benefit of entrepreneurs who have the capacity to operate a company on their own but successfully. The minimum paid-up capital of the shares in the OPC shall be INR 1 Lakh.

List of following details or documents are required for the One Person Company Registration

FOR THE REGISTERED OFFICE

  • Copy of Latest bank statement or mobile bill or phone or gas bill. or electricity
  • Copy of Notarized Rental Agreement.
  • Copy of NOC from the property owner.
  • Copy Sale Deed/Property Deed in English (for the owned property).

List of below documents required to Submitted by OPC member

  • Copy of PAN Card or passport (Foreign Nationals and NRIs).
  • Copy of Aadhar Card/ Voter’s ID/Passport/Driver’s License.
  • Copy of current Bank Statement or Telephone or Mobile Bill or Electricity or Gas Bill.
  • Copy of passport-sized photo.
  • Copy of Specimen autograph or impression.

This latest addition to the various kind of companies in India was a welcome change in India, as it allowed a single individual to take over the affairs of the company, while other types of companies needed at least two persons to serve as representatives of any company.

It is very useful for small businesses that do not need partners. Much in the same way, One Person Company is considered to be a separate legal body from its members. Shareholders here have limited liability rights and this type of business is easy to incorporate.

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2) Sole Proprietorship

Sole Proprietorship is a kind of company registration in which a single individual controls the entire business management. The Proprietorship and the owner shall be regarded as one identity and shall bear himself the benefit or loss made therein.

List of below documents required for Sole Proprietorship

  • KYC documents of the Bank.
  • Utility Bill of the business place.
  • A license issued through the Shops and Establishment Act.
  • Income Tax Returns of the Proprietor.
  • Any 2 of the documents could be submitted for the Bank Account opening with the Identity and Address Proof of the proprietor.

The Business in Proprietorship is registered only on behalf of one single Individual. All accounting shall be conducted on the owner’s account for income tax and GST compliance purposes under the pan no of the owner. In this scenario, the owner must bear unlimited business liability.

(3) Partnership

This is one of the different types of firms where company deals and transactions are done by partners. The legal partnership agreement specifically specifies the obligations, positions, and number of shares withheld by the two parties.

List of following details or documents are required for the partnership firm Registration

  • The date when each partner joined the corporation.
  • The complete names in full & addresses of the partners.
  • The place or principal place of business of the corporation.
  • The names of any other places where the partnership carries on the entity
  • The duration of the partnership and other details as below
    • Proof of ownership or rent/lease of the location of the business.
    • PAN Card copy of partners.
    • Aadhaar Card/ Voter identity card Copy.
    • required a Statement in Form 1 with the prescribed fees.
    • Notarized True Copy of the Partnership Deed declaring:
    • Name of the firm.
    • The nature of the business of the corporation.
  • The Statement should be signed by all the partners of the corporation and need to be verified by affidavit in a specified manner.
  • As specified in the agreement, the gains or losses sustained by the company are split among the partners.

(4) Limited Liability Partnership (LLP)

The Limited Liability Partnership includes a minimum of 2 partners. It is also a recently launched corporate business arrangement that incorporates the words ‘Company’ and ‘partnership firm.’ The LLP is a distinct legal entity that distinguishes among relationships and personal & business properties.

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List of following details or documents are required for the LLP Registration

Documents required by Limited Liability Partnership:

  • Proof of the address of the registered office: proof must be given during registration or within 30 days of its incorporation. A tenancy contract or No Objection Letter from the landlord must be sent to the registered office for leasing.
  • The liability of the partners shall be determined by the number of their share capital. Compared to Sole Proprietorship and Partnership, the Limited Liability Partnership is more trustworthy among its investors. This is due to the proper maintenance of incorporation documents, financial records, and tax records.

Below Documents required from the partners of Limited Liability Partnership:

  • Copy of Current bank statement, phone bill, telephone bill, or gas bill must be submitted as proof of residence by the Partners.
  • Copy of Partners must also have a photo of their plan background passport size.
  • Copy of PAN card or ID Partner proof.
  • Copy of Address proofs of partners, such as Voter ID, Passport, Driver’s License, or Aadhar Card. Proof of identities, such as a driving license, bank statement, residence card, or any government-issued identification card that contains an address, is necessary for all foreign nationals who wish to register as a partner in the Limited Liability Partnership.
  • Copy of Passport is required for NRIs. and foreign nationals.

(5) Private limited company

A Private Limited Company is a privately owned company registered for small companies. According to the requirements of the Companies Act 2013, a minimum of 2 members and a maximum of 200 members may be members of a corporation. In this type of business, there is a group of shareholders, and the total capital is composed of shares owned by each member.

Below details and documents required for Private Limited Company Registration

  • Aadhaar Card/ Voter Id card copy of directors.
  • Rent agreement copy (for the rented property).
  • PAN Card copy of directors.
  • Scan copy Property papers (for the owned property).
  • Attached Landlord NOC.
  • Copy of Electricity/ Water bill (Business Place).
  • Copy of Passport size photo of directors.

In a private limited company, the liability of the shareholders is limited to the number of shares owned by the members. Company assets and personal assets shall be handled separately. Shares of a private limited company can be sold or transferred to persons who in turn, become shareholders of the company. Shares, however, cannot be publicly traded. Private Limited Company could be further listed as:

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(a) Company limited by shares

It is the most general type of a private limited company. Here the liability of the shareholders is limited by a memorandum to the amount, if any, not paid on the shares owned by themselves.

(b) Company Limited By Guarantee

In this form of a private limited company, the liability of the shareholders is limited by the memoranda to the amount that the members may contribute to the company’s assets in the event of bankruptcy.

(c) Unrestricted Business

There is no limit to the liability of the members in this type of company. This ensures that in the case of a loss if the assets of the corporation fall short of paying off the creditors, the private assets of the owners are then consumed for debt relief. The risk factor here is exceptionally high.

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6) Section 8 Company

This form of company registration is a non-profit organization (NPO). The purpose of the NPO is primarily to promote the arts, trade, and different aspects of social welfare in the form of education, charity, religion, and environmental protection, to name but a few. Any income, if produced, shall be used here for the achievement of the aforementioned purpose. Dividends shall also not be charged to their shareholders.

List of following details or documents are required for the Section 8 Company registration

For the Registered Office

  • Copy of Latest bank statement or mobile bill or phone or gas bill. or electricity
  • Copy of Notarized Rental Agreement.
  • Copy of NOC from the property owner.
  • Copy Sale Deed/Property Deed in English (for the owned property).

Below details and documents required for Section 8 Company limited registration

  • Copy of Aadhaar Card/ Voter Id card copy of directors.
  • Copy of Rent agreement copy (for the rented property).
  • Copy of PAN Card copy of directors.
  • Copy of Property papers (for the owned property).
  • Copy of Attached Landlord NOC.
  • Copy of Electricity/ Water bill (Business Place).
  • Copy of Passport size photo of directors.

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7) Public Limited Company

Public Limited Company shares can be owned by the general public. The company must have three directors and a minimum of seven shareholders. There is no limit on the number of shares in the Public Limited Company.

Below details and documents required For Public Limited Registration

  • Aadhaar Card/ Voter Id card copy of directors.
  • Rent agreement copy (for the rented property).
  • Attached Landlord NOC.
  • Copy of Electricity/ Water bill (Business Place).
  • Copy of Passport size photo of directors.
  • PAN Card copy of directors.
  • Scan copy Property papers (for the owned property).

The shares are listed on the stock exchange and can be freely exchanged. These corporations are owned by their founders. Companies in this group need a ROC certificate before beginning their business operations.

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In India, no enterprise registration can be considered as a company unless it is registered with the company registrar under the Companies Act 2013. Only after incorporation does a corporation become a distinct legal entity from its owners.

Business registration is therefore an important and vital step in realising your dream of being a prosperous entrepreneur. Use this information and get started!

What is Process Private Limited Company Registration in Delhi?

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www.carajput.com; Company Structure

  • We must apply to the DSC for the Private Limited Company Registration in Delhi.
  • The next step must apply for the DIN for the Private Limited Company Registration in Delhi.
  • Next step we must apply for approval by the ROC of the Pvt Limited Company Registration in Delhi.
  • Next step we must apply for registration with the latest SPICe Plus forms for registration of a Pvt limited company in Delhi.
  • Get the Registration Certificate (COI) after completion of the registration process of the company.

Here seem to be a couple more posts relevant to business registration for the purpose of brushing up your knowledge:

Also, read the below-mentioned link for a better understanding

Everything Know about company fresh start scheme,2020

Process of Company Registration in India

Know about Companies act, 2013

Requirement pf PAN for company Incorporation for foreign nationals

Mandatory compliance of Private Limited Company

Business Setup in India

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)