Incorporation is the establishment of a new company. The corporation may be a company, a non-profit organization, a start-up, a micro small or medium scale business. MCA manages corporate affairs in India through the Companies Act, 1956, 2013 and other linked Acts, Bills, and Rules. The Ministry is mainly involved with the administration of the Companies Act 2013. Along with this it is also engaged in Companies Act 1956 and the Limited Liability Partnership Act, 2008.
Register a company now to get funding and tax advantages.
Registration service in India with 3simple steps
- Register your directors with the MCA i.e. Ministry of Corporate Affairs
- Get direction to pick the right company name
- Enlist your company’s constitution (MoA and AoA)
A Certificate of Incorporation with PAN and TAN can be obtained post-approval of the company registration process. You can formally open a current bank account with the Certificate of Incorporation and start your company operations.
Why there is need to register a company?
- Getting Loans on the name of the company to invest in a different company
- Separate legal entity is also there
- Liabilities of directors are limited, by which they will not liable personally for company affairs.
- Director of the Company can get tax benefits
- From the time of its establishment the company has the power to take, hold and dispose of the property.
- To build goodwill of your brand
- You can reach globally with company body structure
- To establish a platform to deal with great industries, suppliers, vendors, and customers.
- Company can claim to others with its own or can be sued by anyone, without the personal interest of Entrepreneur
- You can distinguish yourself from others by entering into the corporate environment.
- You can designate money from the general public to invest in Company
Types of Company structure
Private limited company
A private limited company is a separate entity. The liability of the members of a Private Limited Company is limited to the number of shares individually owned by them and the shares of the company cannot be publically traded.
Section 8 Company
Section 8 Company is listed under Section 8 of the Companies Act, 2013. It has been authorized for expanding commerce, art, science, education, research, social welfare, religion, etc protection of the environment if any, or other income is used for advertising only the objects of the company and no profit is paid to its members. Section 8 Company or Section 25 Company is a company registered under the Companies Act, 2013 for charitable or not-for-profit objectives.
One Person Company (OPC)
OPC is a separate legal entity from its members, gives limited liability security to its shareholders, has a flow of business and is simple to incorporate. One person company is similar to the private limited company but it only needs 1 single person.
Limited Liability Partnership
In the LLP partnership, every partner holds limited liabilities. It, hence, can exhibit components of partnerships and corporations. In an LLP, each partner is not accountable or responsible for another partner’s misconduct or carelessness.
Nidhi Company is a kind of Non-Banking Financial Company (NBFC). It is determined to borrow and give money to its members. It implants the habit of savings among its members and acts on the principle of mutual profit.
Eligibility to register in a company
Minimum 2 Person
A company can be enrolled in India, by at least 2 persons, who must act as the directors or shareholders of the company. The highest number of shareholders is 200 and the company can have up to 15 directors.
One director of the company needs to be a resident in India. A person is assumed to be resident if he or she stays in India for at least 182 days during the leading fiscal year irrespective of their citizenship.
Invest as per the necessity of your business, and there is no least capital requirement as such to be kept in the company. However, the government fee on company registration is measured on the capital
Unique Name of Company
The proposed name of the company must not match any existing company or LLP. Moreover, you must verify the trademark registry to ensure that the name does not same with any registered or applied trademark in India.
Online Business Registration
Registering a company offers many advantages. A registered company makes it genuine and enhances the authenticity of your business.
- Legal Identity or recognition of the company
- Numerous Tax Benefits
- Get investment or funding for your company
- Your liability as a person is limited
- Increase brand image and developed trust factor
- Protection from personal liability and shields from other risks and losses.
- Gets bank credits and good investment from regular investors with ease.
- Gives liability protection to preserve your company’s assets
- More comprehensive capital contribution and higher stability
Formulation of Company Name
Company Registration Process
Steps to obtain Company Registration
Company Registration in India will promote the progress of start-ups and give an extra edge over those who have not registered. The Ministry of Corporate Affairs oversees the company registration steps with rules and regulations framed in accordance with the law.
- Step 1: Application for Digital Signature Certificate
- Step 2: Apply for the Director Identification Number
- Step 3: Application for the name availability.
- Step 4: Filing of the Moa and AOA to enrol an in some companies like Private Limited Company
- Step 5: Apply for the PAN and TAN of the company
- Step 6: Issued certification of incorporation by ROC with PAN and TAN
- Step 7: Starting a current bank account on the company name
Documents Required for Company Registration
- Copy of PAN Card of directors
- 2 Passport size photograph of directors
- ID proof Aadhaar Card or Voter identity card of directors
- Copy of address proof rent agreement or property papers
- Electricity or Water bill of company place
- Landlord NOC
Importance of choose the right company structure
It is necessary to choose your company structure carefully as your Income Tax Returns will depend on it. While enrolling your enterprise, remember that every company structure has different levels of compliances that require to be met with. For example, a sole proprietor has to register only an income tax return. Though, a company has to register an income tax return along with annual returns with the registrar of companies.
A company’s books of accounts are to be mandatorily audited all year. Remaining by certain legal compliances needs spending money on auditors, accountants and tax filing experts. Hence, it is necessary to choose the right company structure when considering company registration. An entrepreneur must have a fair idea of the kind of legal compliances he or she is ready to deal with.
While some company structures are nearly investor-friendly than others, investors will always favor a verified and legal company structure.
How to choose a company structure while applying for company registration in India?
Let’s take a look at a few important questions all entrepreneurs must ask himself before he or she finally decides upon a company structure.
How many owners or partners will your company have?
If you are a single person who holds the whole initial investment needed for the company, a One Person Company will be ideal for you. On the other hand, if your company has 2or more owners and is actively looking for investment from other parties an LLP or Private Limited Company will suit you best.
Should your first investment determine your choice of company structure?
Yes if you need to contribute less initially, it will be wise to go in for a Sole Proprietor, or a HUF or a Partnership. But, if you are sure that you will be ready to improve the setup and compliance costs, you must opt for an OPC Company, LLP or a Private Limited Company.
Willing to have the whole liability of the company
Company structures like sole proprietor, HUF and partnership firm have unlimited liability. This implies, in case of any error in loans, the complete money will be recovered from the members or partners in the profit-sharing ratio. The risk to personal assets is large in these cases.
Whereas, Companies and LLPs have a limited liability limitation. This means that the liability of its members is limited to the amount of contribution made by them or the value of shares every member holds.
Income Tax Rates Applicable to companies
The income tax rates applicable to a sole proprietorship and a HUF are the regular slab rates. In a sole proprietorship, the company income is clubbed with the individual’s other income.
But in the case of different entities like partnership and company a tax rate of 30% is suitable.
Plans for getting money from investors
It is hard to get investments when your company structure is unregistered. Entities like LLP and Private Limited Company are trusted when it develops to investment. Make sure you pick the right structure, seek the help of authority so that you register under precise guidance.
Registration cost of a company
Registration that gives legal benefits to the company in respect of name approval, its field of operations, approval of its state of power and many more things are to be given by the concerned authority while applying for company registration. Many countries generally held of different rules and regulations for their corporate law services. Whether it is a Big or micro company, all entrepreneur requires to go over all step of company law services. Well, the steps and procedures under the company registration differ from 1 type of company to another. All companies comprehend their procedures and rules for company registration.
The Cost of different companies’ structure we offer are as follows:
- Private Limited Company-9,000/-
- Section 8 Registration-20,000/-
- OPC Private Limited Company-8,000/-
- Limited Liability Partnership-7,000/-
- Nidhi Company Registration-22,000/-
Comparison of company structures
The differentiation of the different company structures is important to choose the right entity for you. This table will help you to pick best.
|FEATURES||Private Limited Company||One Person Company||Limited Liability Partnership||Partnership Firm||Proprietorship Firm|
|Acts involved||Companies Act, 2013||Companies Act, 2013||Limited Liability Partnership Act, 2008||Indian Partnership Act, 1932||No specified Act|
|Separate Legal Entity||Yes||Yes||Yes||No||No|
|Number of members||2 – 200||1||2- unlimited||2-20||1|
|No.of Directors||2-5||1-15||2 to unlimited||Not applicable||Not applicable|
|Statutory Audit||Compulsory||Compulsory||Dependent||Not Compulsory||Not Compulsory|
|Foreign Direct Investment||Yes||No||Yes||No||No|
|Annual Filings||Income Tax Returns with the ROC||Income Tax Returns with the ROC||Filed with the ROC||Filed with the ROC||Filed with the ROC|
|Rate of tax||Moderate||Moderate||High||High||Low|
Why choose Us?
Frequently Asked Questions
If you still require help registering your company, don’t stress over it, and allow our team of authorities to guide you.
- Private Limited Company
- Public Company
- One Person Company
- Limited Liability Partnership
- Non-Profit Organizations (Section 25 Company)
Thus, the memorandum lays down the scope and powers of the company, and the articles govern the ways in which the objects of the company are to be carried out and can be framed and altered by the members.
In order to become the first Director in a new company the application id to be made through eForm SPICe along with prescribed documents.
To become the Director of an existing company an application is to be made in eForm DIR-3 along with the prescribed documents.
It is mandatory to apply for PAN and TAN along with SPICe (INC-32).
- Obtaining DSC and DIN for the purpose of proposed Directors of the Company
- For name approval minimum 1 and maximum 6 names are to be submitted to the Ministry of Corporate Affairs
- An application along with the necessary documents is to be submitted to the MCA for Company registration.
Private Limited Company can be formed through SPICe Form.
Step 2- Incorporate LLP: eForm 2 for incorporation of LLP
Step 3- LLP Agreement: Execution of LLP Agreement is mandatory and required to be filed with the registrar in eForm 3 within 30 days of incorporation of LLP.