Home Business & Management How to register a company in india

How to register a company in india

If you are willing to register a startup or a new company in India then you need the proper knowledge of company structure and understand how to register it with the government.

Register a company indicates the operation of how to create an entity for your business in a world and it would be significant to know before starting any project or business, how to register yourself in a company, and what kind of different steps should be taken and how?

However to operate any business, you must have permission and licenses to create the plan.

What’s in it for me

  1. Sole Proprietorship
  2. General Partnership
  3. Limited Liability Partnership
  4. Private Limited Company
  5. Public Limited Company
  6. How to register a company in India
  7. Conclusion
  8. Faq

Sole proprietorship

The sole proprietorship is a business owned by one person most local business is a sole proprietorship. The sole proprietorship is easy to establish because it requires less paperwork than other forms of business ownership.

let’s talk about the advantage of a sole proprietorship.

Advantages

Sole proprietors really are not required to report anything to anyone besides filing the tax returns. for most sole proprietors the way is an advantage in the satisfaction of working for yourself.

So the sole proprietors make their own decisions and have full creative control over everything.

As a sole proprietor, you get to keep all the after-tax profile if the business does greeting but the business does not make any money you don’t get paid the Federal government does not recognize the company as a tax saver so all of the profit goes to the owner where it’s treated as personal income

Disadvantages

In a sole proprietorship, the owner has limited liability so any legal damages or deaths attained by the business are the owner’s personal responsibility.

Hence sole proprietor has the steps of making all the major decisions solving all the major problems.

They are sometimes tied down by the company so taking time off can be impossible.

Running a business as a sole proprietor can be complicated because it often requires expertise in accounting Marketing, Information Technology, business law, and a lot of other fields because sole proprietorship depends on single owners they have fewer financial resources.

sole proprietors get none of the employee perks like vacation time, sick leave and health insurance unless they pay it themselves

Partnership

A partnership is similar to a sole proprietorship but Unlike the sole proprietorship, a partnership is owned by two or more people.

Register a company in india

Advantages

Stabilizing of partnership is easy you and your partner basically just say you are in business together and apply for the necessary business license.

So the main reason to start a partnership is to increase the amount of money you have to open and operate the business of financial advantage in partnership is the opportunity to share the cost.

Because partners share the cost for rent utilities, staff and everything as income tax is straight -4 for partnership profit is split between the owners in each owner thread their portion as personal income putting together.

The skills and experience of two or more professionals can help your business grow much faster than operating as a sole proprietor by forming are partners.

You increase the chances that your business will last because new partners can enter the business to replace the one who entire or pass away

Disadvantages

All the owners in a partnership phase the same unlimited liability as sole proprietors.

When you have more people in charge the chances of everyone bumping heard goes up opposed to a sole proprietor because there is only one person in charge issue with expansion session and termination can destroy partnership if the owners don’t have clear plans and expectation

LLP

LLP is basically a partnership firm it is registered with MCA (Ministry of Corporate Affairs) and it has limited liability.

So Limited liabilities mean your liability is restricted or limited to what is contributed in the company or the firm which are LLP

Advantages

The registration cost is low
Also,There is no limit for partners in LLP

Disadvantages

Public disclosure is the main disadvantage of LLP.
Profit cannot be retained in the same way as a company limited by shares

Private limited company

A private limited company is also registered with MCA 8 also have limited liability but it has directors and shareholders and it has restriction I want to transfer shares to the public

Advantages

Limited liability
Free and easy transferability of shares

Disadvantages

Registration proceeds
Division of ownership

Public Limited Company

A public limited company is one that can be owned by any member of the general public through the use of the stock market, In general, the most well-known and famous companies in the world are public limited companies

Advantages

Raising capital by the general public
Growth and expansion opportunities

Disadvantages

Higher levels of transparency required
ownership and control issue

Also readHow to protect your business

Online company registration

How to register a company in India?

Firstly, enrolling in a company, not an easy task many different e-forms should be completed.

Secondly, a lot of time will be required in this process and it quite is tough for doing the whole process. Nowadays, many facilities are very useful such as the internet, online registration, etc.

So many digital technologies are discovered and the use of digital tools to communicate on the internet, digital devices, smart devices, and other technologies.

MCA (Ministry of Corporate Affairs) made the business registration process a lot easier.

Ministry of Corporate Affairs is an Indian Government Ministry. It plays an important role in the regulation of Indian businesses in business and services with the help of MCA, for registering in a company only INC.29 form is required to be filled.

Hence this is an online process which is a very easy and less time-consuming task, there is no need for any agent it can be my own.

Register a company

INC.29 form required

  • Company name
  • Direction Identification Number (DIN)
  • Incorporation Application

All merged in one certificate

These all the detail that required in this process should be done online in seven days.

Firstly, for completion of the process we have to made DSC (Digital Signature Certificate) through www.mca.gov.in.

Digital Signature Certificate or DSC or Digital signature is being approved by various government agencies. Hence it is now a legal requirement in various applications.

For doing digital signature we always required DSC because it is mainly used for electronic work purposes. Half of the work of registration completed after submitting DSC then only two days time more required for the completion of whole work.

But DSC is not provided by all the agencies there are different categories of DSC that promote this certificate. For instance, in India, there are eight agencies that provide DSC.

Documents required for registering a company and for filling the rest of INC. 29 form

  • Personal and Occupational details
  • Educational qualification
  • Photo
  • PAN number
  • Passport number
  • Email address
  • Notarized rental agreement
  • Proof of Identity (Voter ID/ Aadhaar card)
  • Also, Proof of Address (Bank/ Electricity/ Telephone/ Mobile bill)

So Attached documents should be in a form of Memorandum of Association (MOA) and Article of Association (AOA).

Memorandum of Association (MOA)

The Memorandum of Association (MOA) is a legal document that was organized in the production and registration of a registered liability company to explain its relationship with the shareholders.

Last, after these all formalities INC 29 form is filled.

So In all the process of registering in a company we can use MCA official website there will be no need for CA without the help of any agent we can easily register in a company.

Hence this process is very easy and can be done online because of digital electronic work.

However, it will be beneficial to register in a private limited company in this external funding should be raised easily.

There is a minimum of two directors and shareholders are required but a maximum of 15 directors and 50 shareholders needed.

Conclusion

This is the whole essential procedure needed steps for registering in a company that can be done alone without any help easily and also take less time.

FAQ

Do you need to register a business?

yes you have to register the business as a legal entity if you are running it as a corporation, partnership, limited liability company or also as a sole proprietorship

What document required for register a business ?

Personal and Occupational details
Educational qualification
Photo
PAN number
Passport number
Email address
Notarized rental agreement
Proof of Identity (Voter ID/ Aadhaar card)
Also, Proof of Address (Bank/ Electricity/ Telephone/ Mobile bill)

What are the types of companies ?

Sole Proprietorship
General Partnership
Limited Liability Partnership
Private Limited Company
Public Limited Company

What is the advantage of private limited company ?

Limited liability
Free and easy transferability of shares

What are the diadvantage of General Partnership ?

All the owners in a partnership phase the same unlimited liability as sole proprietors.
So when you have more people in-charge the chances of everyone bumping heard goes up as opposed to a sole proprietor. Still, there is only one person in charge issue with expansion session, and termination can destroy partnership if the owners don’t have clear plans and expectations.

Hi I’m Gurpreet singh, Engineer turned Digital Marketer | Entrepreneur |Mechanical Engineer|Visit gurpreetchawla.in

Gurpreet Chawla
Hi I’m Gurpreet singh, Engineer turned Digital Marketer | Entrepreneur |Mechanical Engineer|Visit gurpreetchawla.in
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