As an entrepreneur, you decided to form and run a company now the first step in deciding the structure of the company and the start of the process of Company Registration in India, the majority of entrepreneur has a dilemma as for how to choose between Pvt Ltd vs OPC vs proprietorship vs LLP, in this article, we discuss the best company registration option, in this article we find out how to register a company in India
Types of Companies that can be registered
Registering a company in India is now a simple 4-step process. Here is what you’ll need to acquire:
i. Apply for Name in RUN (Reserve Unique name form)
ii. Apply for Digital Signature
iii. Apply for Company Registration in Form SPICE
iv. Get Certificate of Incorporation and PAN & TAN of the company
| Private Limited Company | Limited Liability Partnership | One Person Company | Partnership Firm | Sole Proprietorship | |
|---|---|---|---|---|---|
| Recommended For | Start-ups and growing companies | Professional services firms | Home businesses | Sole promoters | Small traders and manufacturers |
| Ease of Accommodating Investment | Very easy to accommodate | Possible, but unlikely | Possible, but severely unlikely | Almost impossible | Impossible |
| Limited Liability Protection | Yes | Yes | Yes | No | No |
| Tax Advantages | Taxed at 30% +Cess and Income tax Exemption for Startups | Taxed at 22% + Cess | Taxed at 22% +Cess and Income tax Exemption for Startups | Taxed at 30%+ Cess | Based on Current Slab rates |
| Perpetual Existence | Yes | Yes | Yes | No | No |
| Statutory Compliances | Nominal | Nominal | Nominal | Minimal | Minimal |
The word ‘company’ is derived from the Latin word (Com=with or together; panis =bread), and it originally referred to an association of persons who took their meals together, Nowadays, the business matters have become more complicated and cannot be discussed at festive gatherings. Therefore, the company’s form of organization has assumed greater importance.
DIN Number or Director Identification Number is a unique 8 digit number that is required for any existing or proposed Director of a Company.
DIN number is issued as per section 153 of the Companies Act click on the above link to know more about DIN
Government has removed the criteria of having a minimum authorized capital, this implies that a private limited company or one person company can be formed with a capital of Rs.10 or more, to know more click on the link above
Private Limited Company Registration is the best corporate structure available for a startup which intends to raise fund form investors or wants easy transfer of shares click on the link above to know more about it
Selecting company name is the first process for initiating private company registration process, click on the above link to know how to check the company name and why RoC (Registrar of Companies) rejects the name
E-Commerce Business in India is a booming industry, if you intend to start an E-Commerce Business, click on the link above to know the full details
MoA refers to Memorandum of Association, AoA refers to Articles of Association, understanding this very critical for all entrepreneurs as this documents would be the base under which the company is formed, click on the link above to understand the process
For Company Registration the directors need to submit their KYC ( Know your Customer) Norms, that is Proof of Identity, Address Proof, Residential Proof, click on the above link to know the full documents required for company registration
Company formation involves a series of steps and procedures to complied, a detailed guide is provided in the link mentioned above
Private Limited Company Registration ( PLC Registration) cost depends on the authorized capital and the state in which in its registered as Stamp Duty wary from State to state, for detailed pricing click on the link provided above
Foreign Company Registration requires a complete understanding of FDI policy in India , RBI approvals and other related approval, click on the above link to understand the full process.
LLP ACT 2008 governs the process of registration and, which lays down the procedure for registering and managing a company and its affairs, Ministry of corporate affairs through www.mca.gov.in which is its E-Portal manages the compliance under the companies act and all company formation related formalities must have done through this e portal
This structure is most suited for entrepreneurs who do not want to raise capital from investors this is suitable for small scall business
The minimum number of partners to incorporate an LLP is 2. Maximum partners to restricted to 200 Partners
There should be minimum two designated partners who shall be individuals, and at least one of them should be resident in India.
If you want to start your business with Limited Liability Partnership, then you must get it registered under the Limited liability Partnership Act, 2008.
Steps Involved In LLP Registration
Step1: Obtain DSC & Apply for the name in LLP Form 1
Step2: Post name approval, Apply for LLP Form 2
Step3: Drafting LLP Agreement and submit in LLP Form 3 & 4(Form use for LLP Registration)
Step4: PAN and TAN Application after obtaining a certificate of incorporation
Now that you have understood the Steps involved, we will get into the intricate details of about LLP Registration and its procedures
LLP Formation involves a series of steps and procedures to complied, a detailed guide is provided in the link mentioned above
LLP cost depends on the authorized capital contributed in the limited liability partnership and for detailed pricing click on the link provided above
To Register a proprietor business an entrepreneur can register under GST or apply for MSME registration (Udyog Aadhar)
GST Registration is applicable only when you cross an annual turnover of Rs.20 Lakhs, per annum for providing service or trading in goods or even for manufacturing for complete registration process check our blog
GST refers to Goods and Service Tax, registration under GST is mandatory for sole proprietors to open a current account as the majority of banks insist on GST registration for opening Sole proprietor account, click on the above link to under the process of GST Registration
GST Registration starts from Rs.1200/- for a detailed complete guide on the pricing click on the link above.
In case of any help or assistance for Company registration in India or company registration in Chennai or Company registration in Bangalore contact Virtual auditor support team on +91 9176044244/ 9513939333 mail us support@virtualauditor.in, our team will guide through the entire process and help you comply