Company Registration

What is Company Registration in India?

Starting their own company is a dream of many, but actually proceeding to start a company is a difficult process. It takes a lot of paperwork, legal hurdles and time to register a company. Also numerous other processes are involved in registering a company. But nowadays due to various schemes, relaxations and subsidies being offered by the government for all types of business registration, registering a company in India has become easy. Anyone can register a company online by himself or take help of any legal service provider or Chartered Accountant to get his company registered. Based on a person's choices, requirements and his eligibility, there are many types of companies which can be registered by individuals. Some companies like Startup Company, Section 8 Company, Limited Liability Partnership do not require much paperwork, whereas registration as Private Limited Company, Public Limited Company etc require detailed process, documentation and scrutiny. 

How many Types of Company Registration in India?

In India, there are 10 types of company registrations that businesses can opt for based on their requirements and objectives.

• Private Limited Company
• Startup India Registration 
• Limited Liability Partnership
• Section 8 Company 
• One Person Company
• Public Limited Company
• Indian Subsidiary Company
• Sole Proprietorship
• Nidhi Company
• Farmer Producer Company

#10.Private Limited Company 

A Private Limited Company registration is the most sought after and popular mode of business registration in India. A Private Limited Company is registered or incorporated under the Companies Act 2013. This method of registration provides certain benefits like separate legal entity status, limited liability of the owner, and protection of personal assets etc. It is operated and managed by its appointed directors and provides investors the opportunity to invest in its business. It is the best model for medium to large-scale businesses. private limited company registration is done by the Registrar of Companies (ROC) under MCA. Registration as a Private Limited Company increases authenticity and branding of a firm which helps in attracting investment from various avenues.

Private Limited Company registration is also given preference by startups and new businesses as it offers flexibility in operations, boosts credibility and has various other advantages like asset protection, higher chances of funding, brand visibility etc. It has a limited number of shareholders, and their liability is limited to the Company's obligations, thus protecting their assets if the business fails. This is why many startups prefer this incorporation or registration route when registering. These companies can raise capital by issuing shares. This makes them attractive for businesses seeking financial support.

What is the Private Limited Company Registration Fees?

Are you looking for Private Limited Company Registration Fees then here the details for you. The Pvt Ltd Company Registration cost start from ₹3500 to ₹10000 along with Government Fee ₹2500 and Professional Fee ₹1000.

#09.Limited Liability Partnership (LLP) Company 

Limited Liability Partnership registration or LLP registration is a corporate business agreement which offers the benefits of both a company as well as a partnership firm. It has characteristics of both business and partnership arrangements, and thus referred to as a hybrid arrangement.  An LLP is regarded as a separate legal entity and is solely accountable for the whole value of its assets. In the LLP model of business registration a partner's liability is restricted to the amount of money or capital that they have contributed to the LLP. Partners of an LLP are responsible only for their own conduct. A Limited Liability Partnership registration has a separate legal standing and existence. Limited Liability Partnership also has characteristics of perpetual succession just like a company. Limited Liability Partnership registration is regarded as an ideal business model for small and medium-sized enterprises due to its features of flexibility in operations and structures, as well as its ability to raise funding from venture capitalists. 

The concept of LLP Registration was first introduced in 2008 in India. The LLPs in India are governed by the Limited Liability Partnership Act, 2008 . Every LLP must have a minimum of two individuals designated as Partners and at least one of the partners must be an Indian resident. "LLP Agreement" is the name given to this partnership. There is no limit on having a maximum number of partners in a Limited Liability Partnership incorporation. The LLP agreement narrates the duties, responsibilities, and rights of authorized partners. It is their responsibility for overlooking that all clauses in the LLP Act, 2008 and in their LLP agreement are duly followed. Limited Liability Partnership incorporation is becoming a preferred form of company registration among entrepreneurs in India.

What is the LLP Registration Fees?

Are you looking for LLP Registration Fees then here the details for you. The LLP Registration cost start from ₹3500 to ₹10000 along with Government Fee ₹2500 and Professional Fee ₹1000.

#08.Section 8 Company 

When a Non Profit Organization or NGO wants to register as a company under the companies act 2013 it is called a Section 8 company. A section 8 company registration is done for special purposes like the promotion of education, social welfare, culture, fine arts, commerce, sports, literature or similar purposes. The main motive behind formation of these companies is to carry out non profit activities and promotion of charitable work. For these purposes first an NGO is registered, then a separate and exclusive license is granted to these NGOs to register them as section 8 companies by the government. Section 8 company registration comes under the Ministry of Corporate Affairs, whereas other NGOs who are either registered as trust or society are governed by the Registrar of Societies under state government.

Registering your NGO as a section 8 company has numerous advantages. It enjoys a good reputation and  greater credibility among donors, government agencies, and the general public. The company should be registered for charitable deeds. All incomes and profits must be used for welfare purposes as mentioned in the act. There is no minimum capital requirement for section 8 company registration. These companies have 100% tax exemption as their profits are used for charitable purposes. The members of Section 8 company have limited liability and are not responsible for the company's losses. Donation to Section 8 companies is exempted from tax under section 80G. Documents required and registration process to register Section 8 company is quite similar to private limited company registration.

What is Section 8 Company Registration Fees?

Are you looking for Section 8 Company Registration Fees then here the details for you. The Section 8 Company Registration cost start from ₹3500 to ₹10000 along with Government Fee ₹2500 and Professional Fee ₹1000.

#07.Public Limited Company 

A Public Limited Company registration is done by the Companies Act of 2013. A minimum of seven members and a capital of rupees five lakhs are needed to start a public limited company. Registering a public limited company in India is the best option for business owners planning large-scale expansion of their business. A public limited company has all the benefits and rights of a corporate body and the added  benefit of limited liability. To establish a Public Limited Company, companies must adhere to numerous government rules. Under the companies act, rules and regulations given for public limited company registration are strict compared to other forms of incorporation. These companies are allowed to issue shares to the general public, as they are allowed to float IPOs and selling and buying of shares is permitted in the open market.

A public limited company offers many of the benefits of a private limited company with features like simple transferability and share ownership. A public limited company has greater investment and expansion potential than other forms of companies and is a preferred destination of investors. It is required to disclose its financial information to the public regularly. It also has wide compliance requirements when compared to other companies. The regulatory requirements are also manifold. The registration process and document requirement of a public limited company is similar to private company registration. Benefits of Public Limited Company Registration include easy share transfer, enhanced borrowing capacity, separate legal identity, listing and trading on stock exchanges, increased financing, limited liability, better growth prospects and favourable tax rates.

What is Public Limited Company Registration Fees?

Are you looking for Public Limited Company Registration Fees then here the details for you. The Public Limited Company Registration cost start from ₹13000 to ₹50000 along with Government Fee ₹8000 and Professional Fee ₹5000.

#06.One Person Company (OPC) 

A One person Company registration or OPC registration is a company registration which is opted by a single person. A single person registers and manages this type of company. OPC registration has all the characteristics of a company like perpetual succession, limited liability and a separate legal entity. The Companies Act, 2013 brought the concept of One Person Company registration. Before the enactment of the Companies Act, 2013, a single person was not allowed to register a company. If an individual wanted to start his business, he only had the option of a sole proprietorship as there is a requirement of minimum two directors and two members to establish a Private Limited Company. For a Public Company, a minimum of 3 Directors and a minimum of 7 Members are required.

Now as per the Section 2(62) of the Company’s Act 2013, a company can be registered with just 1 Director and 1 member. The director and member both are the same person. Thus, one person company registration means a company owned and operated by a single individual. An OPC has the features of a company and the benefits of a sole proprietorship. For a one person company, the compliance requirements are also relaxed and lesser compared to a private limited company. This format is suitable for small businesses. An OPC has mostly all the benefits offered typically in Private Limited Company Registration. The OPC registration process is also similar to Private Limited Company and other companies.

What is the One Person Company (OPC) Registration Fees?

Are you looking for One Person Company Registration Fees then here the details for you. The One Person Company Registration cost start from ₹3000 to ₹10000 along with Government Fee ₹2000 and Professional Fee ₹1000.

#05.Nidhi Company 

Nidhi Company is a type of Non-Banking Financial Company or NBFC. Nidhi company registration is done as a public company and must have “Nidhi Limited” suffixed at the end of its name. It is formed according to Section 406 of the Companies Act of 2013. It is registered to allow borrowing and lending money to its members. It promotes the habit of saving among its members and works on the principle of mutual benefit. They are also known as Benefit funds, Mutual benefits and Mutual Benefit Funds firms. The Ministry of Corporate Affairs is in charge of these organizations and issues instructions and directions regarding deposit accepting norms.These companies are a preferred choice of registration in the southern part of the country.

It is not necessary for a Nidhi Company to receive a license from the Reserve Bank of India (RBI), hence it is easy to register. The main activity of a nidhi company is borrowing and lending money which is carried out between the members . A Nidhi Company cannot deal with insurance, chit funds, leasing finance or securities business. It is strictly prohibited from accepting deposits from or lending funds to, any other persons other than its members. Registration process and document requirement of Nidhi Company Registration is similar to other forms of company registration. A minimum of seven persons are required to register a Nidhi Company. 

What is the Cost of Nidhi Company Registration?

Are you looking for Nidhi Company Registration Fees then here the details for you. The Nidhi Company Registration cost start from ₹13000 to ₹50000 along with Government Fee ₹8000 and Professional Fee ₹5000.

#04.Farmer Producer Company 

A Producer Company registration or a Farmer Producer Company registration is done jointly by a registered organization of farmers with the primary purpose to improve their standard of living and ensure good incomes and profitability. Section 465(1) of the Companies Act, 2013 provides that the provisions related to a Producer Company under the Part IXA of the Companies Act, 1956 shall continue to apply to farmer producer companies. Thus, under the Company Act 2013, a Farmer Producer Company registration is done by 10 individuals (or more) or 2 institutions (or more) or by a combination of both (10 individuals and 2 institutions) having their business objective specified as per the act. A farmer producer company is a hybrid between private limited companies and cooperative societies, registered under the Act. The main objective of the producer company is to promote the formation of co-operative business as companies and facilitate the conversion of existing co-operative business into companies.

The main objectives of a producer company should be related to production, harvesting, procurement, pooling, handling, grading, marketing, selling, processing, preserving, distilling, drying, canning, brewing, export, insurance and packaging of the produce of its Members. Other objectives of a producer company are manufacture, supply or sale of equipment or machinery, providing education, consultancy and technical services, training, research and development services, Generation, transmission, and distribution of power, welfare measures and provision of credit facilities mainly to its members. The primary produce includes the products of farmers or agriculturists like farming, plantation, floriculture, horticulture, pisciculture, viticulture, animal husbandry, dairy, beekeeping, handlooms, handicraft, cottage industries or any other primary produce that is notified from time to time by the central government.

What is the Cost of Farmer Producer Company (FPC) Registration?

Are you looking for Farmer Producer Company Registration Fees then here the details for you. The Farmer Producer Company Registration cost start from ₹13000 to ₹50000 along with Government Fee ₹8000 and Professional Fee ₹5000.

#03.Indian Subsidiary Company 

A subsidiary company is a company whose majority of the control is in the hands of another company. The company that holds and controls Indian subsidiary company registration is called a Holding or Parent Company. The parent/holding company owns a majority of stake or shares in the subsidiary company registration. It exercises control over the subsidiary company as the major shareholder. The company in which the holding company owns 100% share capital is termed as a wholly-owned subsidiary. The subsidiary company is acquired or established by the parent/holding company. As per Section 2 (87) of the Companies Act 2013, a subsidiary company or subsidiary means a company in which the holding company:

(i) controls the number of the Board of Directors; or
(ii) controls more than 50 percent of the share capital

Either with itself or together with one or more of its subsidiary companiesx1

As per section 2(46) of the Company Act 2013, a holding company is a company having more than 50% shareholding in another company. An Indian subsidiary company can be defined as a company whose more than 50% shares are owned by some foreign company. It is mandatory for subsidiary companies to comply with Indian laws. Setting up or acquiring a subsidiary company has many benefits like entry into the Indian market, benefits of Foreign Direct Investment(FDI), property acquisition in India, separate legal standing and diversification apart from other benefits associated with company incorporation. Some compliances and tax obligations unique to only subsidiary companies are to be followed.

What is the Indian Subsidiary Company Registration Fees?

Are you looking for Indian Subsidiary Company Registration Fees then here the details for you. The Indian Subsidiary Company Registration cost start from ₹13000 to ₹50000 along with Government Fee ₹8000 and Professional Fee ₹5000.

#02.Sole Proprietorship Company 

A sole proprietorship registration is a preferred form of business for small businesses. It is among the most preferred business models in India. A sole proprietorship is a business that is opened and run by a single person. The sole proprietorship registration mostly suits individuals who wish to start a business with less investment. It does not require any formal registration as such. A sole proprietorship business can be started from the comfort home or on a premise with only a small capital in hand. The business’s control is completely in the hands of the owner who starts and invests in the business. He takes all the losses and enjoys all the profits of his business. He may appoint persons for running the business, but the ownership is in his own hands. Small Businesses like retail stores, grocery stores, beauty parlours, boutiques, etc. are often registered as a sole proprietorship firm. Small traders and manufacturers can also register their business as a sole proprietorship firm. A sole proprietor needs to file annual ITR and GST returns.

#01.Startup India Registration

Startup India is a flagship project of the Government of India. It was launched in 2016 by the prime minister with a view to create a robust and strong ecosystem of startups in India. The primary focus of startup India registration is on nurturing and fostering innovation in various fields, promoting entrepreneurship among the youth in the country, driving sustainable economic growth and generating large scale employment for all sections of society. The scheme is designed to build an ecosystem for startups, offering various benefits such as online, easy and quick registration, funding support, tax exemptions, labour and environmental exemptions. It also offers access to a vast network of investors, mentors and fellow entrepreneurs. The Startup Company Registration process is under the regulatory control of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry. Companies registered with DPIIT as a Start Up entity get many benefits from the government and also from the corporate world. The scheme has multiple provisions for concessions, benefits and incentives making it an attractive arrangement for wannabe entrepreneurs.

India has become the 3rd largest ecosystem for startups in the world and latest data informs that there are well over 1 lakh DPIIT recognized startups across 700 districts in India. Companies working in sectors like Educational Technology, Financial Technology, Artificial Intelligence, Cybersecurity, Cloud Services, Healthcare, Agriculture and related fields, Defence, Blockchain, Internet of Things, Food Business Aggregators, Logistics, Information Technology Services, Drone Technology, Designing, E-Commerce, Telecom etc. are typically considered as Startups. Benefits of Startup India registration include access to 10,000 crore Startup India corpus, reduction in patent registration fees, fast processing of IPR applications, 90-day exit window in case of bankruptcy, freedom from labour inspections for the first 5 years, self-certification for labour and environmental laws and freedom from paying capital gains tax for the first 3 years. Startup India Registration Process is done through Startup India and DPIIT website. A business must be already registered before applying for registration as a startup. Eligibility criteria to get Startup India registration includes that annual turnover limit should not exceed INR 100 crores, startup should not be more than 10 years old and startup should be an originally formed entity. 

What is Startup India Registration Fees?

Are you looking for Startup India Registration Fees then here the details for you. The Startup India Registration cost start from ₹3000 to ₹25000 along with Government Fee ₹ Nil and Professional Fee ₹ Nil.

Which Documents are Required for the Register of a Company?

Just like any other government procedure, to register a company, a certain set of documents are needed to be uploaded with the application form. For the LLP Registration two sets of documents one for LLP and the other set of partners documents is required.

Below is a list of necessary documents required for company registration in India:

• Aadhar card.
• PAN card.
• Copy of Driving license.
• Copy of Passport. 
• Copy of latest Telephone bill.
• Copy of latest Electricity bill. 
• Director Identification Number of all directors.
• Digital Signature Certificate of all directors.
• Documents of the Company.
• Rent agreement if the office premises is rented property. 
• No Objection Certificate to use the premises from the landlord
• Latest electricity bill of the office address.
• Latest telephone bill of the office address. 
• Copy of the Certificate of Incorporation of a company issued by the Registrar of Companies (RoC).

What is Company Registration Eligibility?

To register a company in India, certain eligibility criteria have to be fulfilled. Common eligibility criteria to register a company is as follows:

• A minimum of two shareholders.
• Two Directors. 
• Minimum Authorized Capital in case of some companies like Limited Liability Partnership. 
• Minimum one director should be an Indian citizen. 
• A distinct and unique proposed name of the company/OPC/LLP
• Memorandum of Association of company 
• Office for verification and official communication. 

What is Company Registration Benefits?

Different types of company registration offer different benefits but some common benefits and main advantages are given below:

• Limited liability
• Increased Fundraising Opportunity
• Facility of Perpetual Existence
• Confidentiality and Privacy
• Credibility and Trust
• Ease of Ownership Transfer
• Cost-Effective
• Good Management Control
• Separate Legal Entity Status
• Minimal Compliance in case of some companies like LLP
• Lower Incorporation Cost in case of LLP
• No Minimum Capital Requirement: 
• Perpetual Succession

What is Company Registration Process in India?

Company registration is now made completely online. Anyone having knowledge of eligibility and documents can register himself. Below is the step-by-step procedure to get registration of a company in India:

• Step 1: Get a Digital Signature Certificate or DSC for online application filing on the Ministry of Corporate Affairs or MCA portal. It can be fetched from government-authorized certifying authorities
• Step 2: After getting DSC, get your Director Identification Number (DIN).  Apply for DIN using the SPICe form.
• Step 3: After the DIN is allotted ,apply for Registration on the MCA Portal and submit the SPICe+ form on the portal, which is the form to register a company. 
• Step 4: Now proceed with name reservation. Search the MCA portal for the name of your choice and submit two proposed names. 
• Step 5: Proceed with completing Part-B of the SPICe+ form, attach the required documents and sign all forms with DSC and submit online. The following particulars are to be filled in part B:
  1. Subscribers and Directors details
  2. Capital details
  3. Full address of office
  4. Selection of State or Union Territory for calculating Stamp duty
  5. Move application for getting company PAN and TAN
  6. Declaration and certificate by practicing CA/CS or CMA.

• Step 6: Preparation and Submission of Incorporation Forms (SPICe+ MOA and AOA)
• Step 7: After successful submission of all the documents and SPICe+ form by the applicant, the ROC verifies the submitted application and documents. After verification, the ROC issues the Incorporation certificate for the company. Normally you can get your Private Limited Company Registration in 7-10 days.

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