Company Registration In India | Documents Required | Fees | Types
Company Registration In India can be done in various forms and can get confusing sometimes. The most confusing question that pops up in mind – whether I should incorporate a private limited company, an LLP (Limited Liability Partnership), or an OPC (One Person Company). Isn’t it? No worries! This article will clear your doubts and un-clutter your mind so that you can confidently go ahead and start taking action.
In this article, we will brief you about each form of business based on which you may dig deeper into the form of company you are interested in:
Different Types Of Company Registration
In the Indian legal system, the system allows various types of companies to exist under different Types of company registration in India and the following are :
Private Limited Company Registration :
A Private Limited Company Registration is a privately maintained small business existence, which is one of the highly recommended to start a business in India. The Companies Act 2013 governs Pvt. Ltd. company registration. While a minimum of 2 shareholders is required to start a private company, the limit of members is 200 Companies Act, 2013.
Limited Liability Partnership Registration :
LLP Registration is a type of partnership firm which is mostly preferred by the entrepreneur. It is the easiest form of business structure with the benefit of limited liability. LLP registration gives freedom to partners to form a partnership structure where the liability of each partner is limited to the amount they contribute to the business. Limited liability partnership firm registration means that if the partnership fails, creditors cannot ask for the partner’s personal property or income.
One-Person Company Registration :
A One-Person Company Registration is that has only one person as a member. OPC Registration was introduced to encourage individuals who are capable of starting their own business. As Per Section 2(62) of the Companies Act, 2013, One Person Company means a company that has only one person as a member. One Person Company is bringing the unstructured Proprietorship Business into the structured version of a private company. OPC is opening the path for sole proprietors and Start-Ups.
Partnership Firm Registration :
A Partnership Firm Registration enables a well-recognized business structure formed with the mutual consent of all the partners for a profitable purpose. The firm is managed, owned, and controlled by a set of people that are known as partners and have some shared capital in the firm. A partnership firm is done under the Partnership Act, 1932 with very little documentation and formalities.
Sole Proprietorship Registration :
A Sole Proprietorship Registration is owned and managed by an individual. In a sole proprietorship business, there is no legal difference between the owner and the business. To put it in another way a sole proprietorship is not a legal entity, where an is responsible for clearing off the debts of the business. The sole proprietorship is a preferable and popular business form. It is simple and easy to form a nominal cost.
Section 8 Company Registration :
Registration of Section 8 Company under the Companies Act, 2013 as a Non-profit organization. As we all know NPO can be registered as Trust by executing a Trust deed or, As a society under the Registrar of Societies, or, As a non-profit company under Section 8 Company of the Companies Act, 2013.
Public Limited Company Registration :
Public Limited Company Registration in which companies enjoy all the rights of a corporate entity with limited liabilities and is an ideal choice for the small and medium scale enterprises who wish to raise equity capital from the general public. Just like other companies, Public Limited Company is also registered as per the rules and regulations of the Companies Act, 2013. It can be incorporated with a minimum number of three directors and has more stringent rules and regulations as compared to a Pvt. Ltd. Company.
US Company Registration :
The USA is infamously known for being a great business hub. It can enlarge your business and registering your company there would also be a key factor for the success of your business.
For starting a business in the USA, the first step is to start with the company registration process. There are a few steps that need for US company registration. The USA government has given few relaxations to foreign nationals who want to set up a business over there. A foreigner can set up or incorporate a company via online mode either as Inc or an LLC by following a simple procedure. Most foreign nationals are willing to set up a business in the USA, due to its foundational technology, infrastructure, and resources available in the country.
FAQ – Frequently Asked Questions
What are the rules for picking a name for a private limited company?
The registrar of companies (RoC) across India expects applicants to follow a few naming guidelines. Some of them are subjective, which means that approval can depend on the opinion of the officer handling your application. However, the more closely you follow the rules listed below, the better your chances of approval. First, however, do ensure that your name is available.
How much time is needed for setting up a private limited company in India?
If you have all the documents in order, it will take no longer than 15 days. However, this is dependent on the workload of the registrar.
Do I need to be physically present during this process?
No, new company registration is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.
What documents are required to complete the process?
All directors must provide identity and address proof, as well as a copy of the PAN card (for Indian nationals) and passport (for foreign nationals). No-objection certificate must be submitted by the owner of the registered office premises.
Does a private limited company have continuous existence?
Yes, so long as the annual compliances are met, the private limited company will continue to exist. If you do not comply with the requirements, it will go dormant, until it is struck off the register altogether.
Is it necessary to have a company’s books audited?
Yes, a private limited company must hire an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs of rupees and even lead to the blacklisting of directors.
What are articles of association and memorandum of association?
These documents contain the rules, vision, and mission of your organization, and define, among other things, the exact business and the roles and responsibilities of shareholders and directors.
What is the minimum capital needed to form a private limited company?
There is no minimum capital required for starting a private limited company.
Can the limited liability partnership (LLP) be converted to a private limited company?
No, one cannot convert an LLP into a private limited company as it is not an MCA. The LLP Act, 2008, and the Companies Act, 2013, both don’t have any provisions on the conversion of the LLP is a private limited company. However, if one wants to expand their business they can register a new private limited company with the same name. The LLP company needs to just issue a no-objection certificate.
If there are no partners available, then can one register their family members in the company?
Yes, it is good to register a family member as a partner. At a later stage, one can change this or transfer shares of the directors.