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.
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
A Copy of Notarized Rental Agreement.
Copy of NOC from the property owner.
The 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).
A 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.
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.
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.
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.
Complete names in full & addresses of the partners.
The place or principal place of business of the corporation.
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.
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.
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.
A Copy of Partners must also have a photo of their plan background passport size.
The 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.
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
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:
www.carajput.com; Company Structure
(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.
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 in case 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
A Copy of Notarized Rental Agreement.
Copy of NOC from the property owner.
One 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.
A Copy of Rent agreement copy (for the rented property).
one Copy of PAN Card copy of directors.
The Copy of Property papers (for the owned property).
Copy of Attached Landlord NOC.
In Copy of Electricity/ Water bill (Business Place).
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.
Scancopy 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.
No enterprise registration can be considered as a company in India, 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?
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.
Very 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:
Frequently Asked Question On business structures for setting up an entity
Q.: What Is the Minimum Director Requirement for a One-Person Company Incorporation?
The minimum number of directors for a one-person company is one (1), with an additional requirement of one member and nominee.
Q.: What is the minimum capital requirement for registration in India for private limited companies?
The company Act 2013 specifically requires all private limited companies, before they actually start business, to maintain a minimum paid-up capital of Rs1 lakh.
Q.: What is the best way to start a new business?
There are different types of enterprises in India such as sole proprietor, partnership companies, cooperative companies, companies, etc. The choice of the appropriate organizational structure for every particular company will depend on factors such as ownership, capital availability, scale of businesses, etc.
Q.: How and where do I request registration for an online company in India?
The application must be submitted on-line along with the required documents on the department portal as prescribed. You will receive the email from the department if there is any discrepancy or approval.
Q.: What exactly is SPICe+ Form?
SPICe stands for Simplified proforma for incorporating a company electronically, and it serves as an application form for company registration in accordance with the Ministry of Corporate Affairs’ guidelines (MCA). SPICe+ is an updated version of the SPICe form that was implemented on February 15, 2020.
Q.: What the required documents are for incorporate the company?
Significant documents required for company registration include directors’ Pan Card and Aadhar card, passport size photos, conveyance deed or rent agreement, energy bills, and so on, in addition to the prescribed documents, which can be prepared with the assistance of a professional.
Q.: Can a person residing outside of India become a director of a private limited company?
Yes, a person resident outside India/ NRI or Foreign National may become a Director in a Private Limited Company, but at least one Director on the Board must be an Indian Resident.
Q.: Is it Possible for me to incorporate Company by Myself?
Yes, you can complete all of the company’s documentation on your own, but it is recommended that you seek professional assistance because verification from a chartered accountant or company secretary is required to certify that all of the required compliances have been met.
Q.: Is registering a company mandatory in India?
Yes, before beginning business activities, you must have your company registered with the Registrar of Companies. To take advantage of the advantages associated with various types of businesses, you must ensure that the proper company registration procedures are followed.
Q.: How does a Pvt Ltd company operate?
Every private limited company operates in a unique and distinct manner. However, the promoters, who have the final say on how the organisation operates, are the final deciding authority. A private limited company operates solely at the discretion of its owner. Because the company’s shareholding power is concentrated in a few hands, decision making is quick and smooth, unlike in a public limited company.
Q.: How long does registration in India take for a company?
Once the documents are submitted and the application fee is paid, it usually takes 7-10 days to receive the company’s incorporation certificate.
No, for registration of companies in India, physical presence is not required. You can register a company online in a much more easy and simple way.
Q.: What is the procedure for verifying a company’s registration number?
Registration of a company is also referred to as Company Identification No. (CIN), assigned to each company in accordance with the 2013 Act, regardless of size and format. With the help of the following steps, you can check online your company register details:
Go to the site of MCA.
Drop the menu bar of Services of MCA .
Company services.
Search for CIN.
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