How to register Company in India
In India, starting up a business with right business entity structure for your business is as important task due to pros and cons of every structure. The right structure of your business allows you to work smoothly and efficiently to achieve your desired goal and targets. Before we learn which business structure you should choose, let’s have a look on all option available to get your business register.
What are the types of business structure in India?
- Proprietorship Concern: – This is owned by one person having fully control on finance, decision making and all matters of business. Most famous form of business entity in India, around 65 percent of business running under this structure. Easy to start business and Easy exit.
- One Person Company Famously know as OPC: – Youngest in all structure, introduce in 2013 by Companies Act, 2013. Company owned by one person yet having taste of corporate.
- Partnership Firm:- More than one person enter into oral or written agreement to achieve their common goal. All matters of firm jointly discussed between themselves.
- Limited Liability Partnership famously know as LLP: – LLP is favorite since its first introduce in 2007. This structure allowed limited liability of partner with out loosing power of decision making and all important matter.
- Private Limited Company: – A company is separate legal entity in the eyes of Laws. Shareholders (maximum 200 shareholder) are the owner of company and directors having control over decision making of company. Directors considered as the employees of company.
- Public Limited Company: – Public limited company is like a private limited company but this company is publicly held company (no limit of shareholder of the company).
How to choose business entity structure in India?
While choosing right structure one should consider following :-
- Applicable tax rate on business entity
- Investment requirement of business
- Number to promoters
- Compliance to be made
What is the company registration process in India?
New rules has been applicable from 23rd February 2020 for registration of company in India. Web based form has been launch and early pdf based form has been withdrawn. New form divided into two parts Part A and Part B of Spice + form.
Procedure as per new guideline for registration of company
- Digital Signature
- Name Approval
- Application for incorporation of company
- Allotment of DIN, PAN, TAN, Incorporation Certificate, GST, ESI and EPF
- Opening of bank account of company