Would you like to start/incorporate a company? Or have you already incorporated it? If yes, have you ever thought about what a company is? Well, a company is a separate legal enterprise formed under the rules and regulations of the Companies Act of 2013 & it has a legal existence separate from the individuals who own, manage & operate its functions.
As per the Companies Act, 2013 various types of company registration in India. It’s overwhelming to choose the right type of company registration.
- Private Limited Registration
- Limited Liability Partnership Registration
- One Person Company Registration
- Section 8 Company Registration
- Public Limited Company Registration
Now let us discuss company registration, its benefits, process & documentation required for the different types of company registration in India:
Types of Company Registration in India-
What is Private Limited Company Registration?
A private limited company is a company that is privately organised for small businesses and whose articles of association restrict the right of transferability of shares and prevent the public from subscribing to them.
Benefits of private limited company registration
- Separate Legal Entity
- No Minimum Capital Requirement
- Perpetual Existence
- Ownership Transferable
- Enhanced Value in Market
Why Register a Private Limited Company in India?
The existence of a private limited company is not ruled to the death of its members and shareholders. Company owners experience abundant opportunities. They can also expand their business by merging with other firms. They have lower corporate tax rates to pay.
Documents Required for Private Limited Registration
In the Case of Indian Nationals)
- Pan Card and Aadhar (Directors)
- Identity Proof of Both Directors-(Voter ID /Passport/ Driving License)
- Passport Size Photos ( Latest Photos of Both Directors)
- Business Address Proof ( Latest Electricity Bill/Telephone Bill of the Registered Office)
- NOC from the Owner (We Will Provide)
- Residence Proof of Both Directors – (Latest Bank Statement/ Telephone or Mobile Bill/ Electricity or Gas Bill).
(In Case of Foreign Nationals)
- Passport Copy (Mandatory)
- ID Proof (Any) – Driving License/voter ID/ (Issued by the Govt of a Foreign Country)
- Address Proof – Latest Bank Statement/ Latest Telephone or Mobile Bill/ Latest Energy Bill. (Issued by the Govt of a Foreign Country and Should Not Be Older Than 30 Days)
- Passport Size Photographs
Note: the above-mentioned documents at points 1, 2 & 3 must be notarized by the public notary in a foreign national’s country.
Private Limited Company Registration Process
Step 1- Obtain the Digital Signature
Step 2 -Application for name availability
Step 3 -Filing form INC-32 (Spice +), Agile Pro
Step 4 -Submission of E-Moa & E-Aoa
Step 5- Roc Issues a Certificate of Incorporation, Pan No, & Tan No.
Now Your Company Is Incorporated.
What is Limited Liability Partnership (LLP)Registration?
LLP is a corporate entity in which the liability of the partners against all financial losses incurred by the company is separate from that of the company. LLP has complete freedom to conduct its business.
Benefits of Limited Liability Partnership Company Registration
- Ease of Formation
- There Is No Minimum Capital Requirement
- Fewer Compliances
- Registration Cost Is Low
- Easy Ownership Transferability
Why Register a Limited Liability Partnership Company in India?
Limited liability partnership is that the partners are not personally liable and cannot be forced to pay business debts or obligations with personal property or assets except in the case of fraud. No mandatory audit. Immediate legal recognition. Partners cannot be legally sued.
Documents for Limited Liability Partnerships Registration
- Pan Card (Both Partners)
- Aadhar Card (Both Partners)
- Identity Proof of Both Partners-(Voter ID /Passport/ Driving License)
- Passport Size Photos ( Latest Photos of Both Partners)
- Business Address Proof ( Latest Electricity Bill/Telephone Bill of the Registered Office)
- NOC from the Owner
- Residence Proof of Both Partners – (Latest Bank Statement/ Telephone or Mobile Bill/ Electricity or Gas Bill)
Limited Liability Partnership Registration Process
Step 1- Obtain the Digital Signature
Step 2 -Application for Name Availability
Step 3 -Submission of Fillip Form
Step 4- ROC Issues a Certificate of Incorporation, Pan No, & Tan No.
Step 5- Filing of LLP Agreement in Form 3 Within 30 Days of Filing Form Fillip with MCA
What is One Person Company (OPC) Registration?
One person company is a company that can be incorporated with a single person only. Having a minimum 1 shareholder, 1 director, and 1 nominee.
Note: Only a natural person who is a resident Indian citizen or NRI is eligible to incorporate a One Person Company Registration.
A resident in India means a person who stayed in India for at least 182 days during the immediately preceding calendar year.
Benefits of OPC Company Registration
- Limited Liability
- Continuous Existence
- Secures Personal Wealth
- It Requires a Nominee to Continue the Business Existence
- Few Legal Compliances Required
Why Register a One Person Company in India?
One Person Company allows sole proprietorship. Requires less legal compliance. It has a separate legal entity. Personal wealth is secured. Doesn’t require setting any minimum capital requirement. It requires a nominee to continue the presence of the business. It enjoys the same privileges as a private limited company.
Documents Required for Incorporating OPC Registration
- Pan Card (Both Director and Nominee)
- Identity Proof Both Director and Nominee -(Aadhar Card/voter ID /Passport/ Driving License)
- Residence Proof of Both Directors & Nominee– (Latest Bank Statement/ Telephone or Mobile Bill/ Electricity or Gas Bill)
- Passport Size Photos ( Latest Photos of Both Director and Nominee )
- Aadhar Card
- Business Address Proof ( Latest Electricity Bill/Telephone Bill of the Registered Office)
- NOC from the Owner
One Person Company Registration Process
Step 1- Obtain the Digital Signature
Step 2- Application for Name Availability
Step 3- Filing form Inc-2
Attached Signed Inc-3 Form, which is to Be Self-attested by the nominee.
Step 4- Submission of MOA and AOA (Attached Signed Inc-3 Form, Which Is to Be Self-Attested by the Nominee)
Step 5- Roc Issues a Certificate of Incorporation, Pan No, & Tan No.
What is Section 8 Company Registration (NGO) in India?
NGO established under section 8 is an independent non-profit organization, generally for promoting education, social welfare, religion, research, science, art, and culture and raising concerns regarding socio-environmental issues.
Benefits of Section 8 company registration
- Easy to Formulate
- Much Easier Compliance
- No Minimum Capital Is Required
- Easy Government Funding Is Available
- It Allows More Tax savings
Why Register a Section 8 Company in India?
Section 8 Company is a separate legal entity. It allows more tax savings and much easier compliance. Easy to formulate. Protection from personal liability.
Documents Required for Section 8 Company Registration (NGO Registration)
- Pan Card and Aadhar (Directors)
- Identity Proof of Both Directors-(Voter ID /Passport/ Driving License)
- Passport Size Photos (Latest Photos of Both Directors)
- Business Address Proof (Latest Electricity Bill/Telephone Bill of the Registered Office)
- Annual Income Estimate
- NOC from the Owner (We Will Provide)
- Residence Proof of Both Directors – (Latest Bank Statement/ Telephone or Mobile Bill/ Electricity or Gas Bill).
Section 8 Company Registration Process
Step 1- Obtain the Digital Signature
Step 2 -Application for Name Availability
Step 3 -Submission of Spice+ Form
Step 4- Apply for Tan & Pan of the Company
Step 5- ROC Issues a Certificate of Incorporation, License, Pan No, & Tan No.
What is Public Limited Company Registration in India?
A public limited company is an entity which is best for the business structure in which the corporation can offer its shares to the general public and its shares can further be listed on a public stock exchange. By purchasing shares, shareholders are entitled to enjoy profit margins to a certain extent and bear losses. These forms of business structures are considered by the types of companies that mostly have large-scale infrastructure plans. A minimum three directors & seven shareholders or members are required for a public limited company.
Benefits of public limited company registration
- Shares Can Be Transferred Easily
- Borrowing Capacity Increased
- Separate Legal Entity
- Shares Can Be Listed on a Stock Exchange
- Unlimited Growth & Expansion Opportunities
- Unlimited Fundraising
Why Register a Public Limited Company in India?
Public limited companies give the ability to raise capital and gain brand awareness and customer trust. It is its separate legal entity. Tax efficiency. It is likely to be listed after the IPO.
Documents Required for Public Limited Company Registration
- Pan Card and Aadhar (Directors)
- Identity Proof of all directors-(Voter ID /Passport/ Driving License)
- Passport Size Photos (Latest Photos of directors)
- Business Address Proof (Latest Electricity Bill/Telephone Bill of the Registered Office)
- Rent Contract ( If Rent)
- NOC from the Owner (We Will Provide)
- Residence Proof of all Directors – (Latest Bank Statement/ Telephone or Mobile Bill/ Electricity or Gas Bill).
Public Limited Company Registration Process
Step 1- Obtain the Digital Signature
Step 2 -Application for Name Availability
Step 3 -Submission of Relevant Forms –Spice Part B, Spice Moa, Spice Aoa, Inc. 9 Agile Pro
Step 4- Apply for Tan & Pan of the Company
Step 5- ROC Issues a Certificate of Incorporation, Pan No, & Tan No.
