Company Registration in Indiaby Ananya Nair Accounting and Legal Services
Company registration process means forming a company after following the rules and regulations along with few guidelines that have been mentioned under the companies Act 1956, 2013 & other allied acts, bills and rules. There could be registration for various types of business models like start up, MSME or non-profit organization. But registering your company under the right business structure is quite significant. Only choosing the right business model can help you to successfully fulfill all your business requirements. In India it’s mandatory for you to register your company before you start your business. Following types of businesses are available in India –
Limited Liability Partnership (LLP) – Such type of companies are perfect for service based businesses or in case your business has a low investment requirement.
Private Limited Company – Your business should go for private limited company registration if your business has a high turnover.
One Person Company (OPC) – It’s a good way to start your company if there is a single owner or promoter of the respective business.
Public Limited Company (PLC) – PLC is a type of company that also suits well with a business with high turnover.
Choosing the right business:
It’s quite important for you to choose the right business structure before you apply for your company registration in India. Make sure about few factors that play very significant roles in determining the type of business you should go with:
Make sure about the number of members your business could have, or you’re the single person who will take the entire control of the business. A one person company would be perfect for your business where you’ll conduct the entire business process at your own. In case other members will join your business and made the required investment for the same then registering for a LLP or private limited company could be the best solution for your business.
Check with your initial budget for business. If you’re not willing to invest more at the beginning of your business then going for a sole proprietorship or partnership business could be the right choice for you. On the other hand if investment is not an issue for you then you could easily go with One Person Company, Limited Liability Partnership or Private Limited Company.
Another part for determining the type of business depends on the type of risk you’re willing to take as a business owner. Different categories of businesses have different liabilities. Sole proprietorship, partnership etc. have unlimited liability. If under any condition such businesses face any financial challenge then the owner would be accountable to compensate the financial losses. Personal belongings are also at high risk in such case. But for LLP there is limited liability. Here liabilities of the members are restricted.
Considering the above factors you must choose the right business model before you go for registration.
What are the documents required for company registration process in India?
Below are the documents that you should submit while registering your company in India:
·Identity proof of director/shareholder of the company
·Proof of registered office in India
·Address proof of director/shareholder of the company
·Signed incorporation documents
·Memorandum of Association (MOA) and Articles of Association (AOA)
Benefits of registering a company in India:
Separate Legal Entity – Any company would come with the operation of law and could be end with the power of law. Many owners will come and many will go, but the company will stay there forever.
Limited Liability Protection – In few companies like Limited Liability Partnership (LLP), One Person Company (OPC) limited liability protection is there. In case of any financial damage the owners will not be personally responsible towards the loss of business. This facility can motivate the company owners to take the risk in business without fear of losing everything.
Legal identity to your business – Registering your business under the right company can offer you the proper legal identity to your business.
Tax benefits – A registered company is more likely to get the tax benefits than any non-registered company.
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Created on Jan 22nd 2020 08:16. Viewed 164 times.