Know About Complete Process of Company Registration

Registering your firm establishes it as a distinct entity with a legal existence. The Ministry of Corporate Affairs (MCA) oversees the business registration process in India. 

There are a few specified steps for company registration by which one can register their company easily without any trouble. But before registering a company, one must know about the types of company registration available in India.

Let us know about the details of company registration from the below-discussed points

The decision to register your company online under the correct business system is critical. Choosing the right business system for your organisation is just as important as any other business-related decision. The right company structure will enable your company to run smoothly and reach your objectives. Every firm in India is required to register as part of the legal system.

However, to make your business registration procedure as simple as possible, we've compiled a comprehensive list of company registrations and associated application processes.

Types Of Company Registration

In India, there are seven different forms of business registrations –

1. Private Limited Company
2. Public Limited Company
3. One-Person Company
4. Limited Liability Partnership
5. Section 8 Company
6. Nidhi Company
7. Producer Company

Private Limited Company

Private limited company registration is a great option if you want to run your business as a private corporation. To protect their investments, owners usually bear liability responsibilities equally. The shares of a private limited business, unlike those of public corporations, are not eligible for public trading or transfer.

According to the Companies Act, 2013, a corporation must fulfill the following criteria to get incorporated as a private limited company:

• A minimum of two and a maximum of fifteen directors are required (However one may exceed the limit of fifteen, after passing a Special Resolution in the general meeting.)
• One of the directors must be a citizen of India.
• It should have at least two members and the maximum limit is two hundred members.
• A minimum of one registered office address in India is required.

Required Documents For Private Company Registration

The following are the necessary documents for a Private Limited Company registration:

• All company directors' PAN cards
• Bills ( not older than 2 months )
• All directors' passport-size picture IDs
• Directors Aadhar card/Voter Id card
• Bank Statement/ Electricity bill/Telephone bill as proof of residential address.
• Letter of authorization from the landowners

Public Limited Company

Unlike private limited corporations, public limited companies allow the entire public to own shares. It was formed in accordance with business legislation and is freely traded on stock market systems. Before engaging in any commercial operations, these sorts of businesses need to apply for the ROC certification.

Required Documents

The documents that are required for the registration of a public limited company are the same as the documents required for the registration of a private limited company.

One-Person Company

One Person Company registration (OPC) is a relatively new concept in India. This is the type of registration that most small enterprises or startups conduct by a single person. The owners are protected from responsibility under this registration, thus no partnerships are required.

It's simple to maintain, manage, and run because only one person is in charge of all aspects of the firm. It's a hybrid of a sole proprietorship and a private limited company.

Required Documents For OPC

• For foreigners, PAN stands for Passport.
• Photocopy of ID evidence Bank statements, or bills (not older than two months)
• The specimen's signature

The following documents are requested by the registration office:

• Bills or bank statements
• A property owner's NOC for rental agreements
• Property deed copy (in case of own properties)

Limited Liability Partnership

In India, the limited liability partnership (LLP) is a relatively new business organisation. It has its own legal personality, allowing entrepreneurs to separate their personal and business assets while simultaneously limiting their liabilities. The number of shares in the corporation determines each partner's liability in an LLP.

In order to create an LLP, the following conditions must be met:

• At least one of the designated partners must be an Indian citizen.
• There must be at least two designated partners, with no restriction on the overall number.

Section 8 Company

Section 8 companies, sometimes known as non-profit organisations (NGOs), are dedicated to charitable causes. The mission is to promote the arts, science, literature, education, charity giving, and environmental conservation through the arts, science, literature, and education. Furthermore, whatever revenues they produce are used to further these objectives, and members do not get dividends.

The following are the requirements for registering as a Section 8 Company:

• There must be at least two stockholders.
• Two directors are necessary, and they can be stockholders as well. A minimum of 1 director must be an Indian national.
• There are no financial constraints.
• It is necessary to have a registered office address in India.

Nidhi Company

Non-banking financial firms are referred to as Nidhi Companies. The registration of a Nidhi Company allows it to lend and borrow from its members.

Nidhi Companies, based in India, were founded to encourage members to save money and practise thrift. A Nidhi Company obtains all of its funds from its members.

As a consequence, forming the Nidhi Company is straightforward. Because they are public companies, Nidhi Limited should be at the end of the name.

It's also worth noting that the Reserve Bank of India regulates the Nidhi Companies.

Producer Company

A producer company is a corporation that focuses on agricultural operations. A producer corporation can be formed by ten or more persons, each of whom is a producer. The following are the primary activities with which a producing firm is involved:

• Procurement
• Production
• Harvesting
• Grading
• Pooling
• Handling
• Export,
• Marketing
• Selling

Procedure Details Of Company Registration

• Approval of Company Name

The application for a name reservation is the first step in forming a company. For applying for name reservation SPICE Part A is required to be filed. When applying for a name reservation, make sure that the suggested name does not sound similar to any existing businesses. Furthermore, the suggested name should not have any trademarks reserved. The MCA portal may be used to see if a company's name is available.

• Digital Signature Certificate Application

The second step in the company registration procedure is to apply for a Digital Signature Certificate (DSC). A digital signature certificate (DSC) is a legally enforceable document used to validate data. Electronic documents are frequently signed with a digital signature certificate. As a consequence, apply for a Digital Signature Certificate from a certifying body that is registered.

• Registration On The MCA Portal

The SPICe+ form must be completed and submitted on the MCA website in order to apply for business registration. The firm's director must first register on the MCA website in order to fill out the SPICe+ form and attach the required documentation. He or she can log in after registering and have access to MCA online features such as filling e-forms and seeing public records.

• Certificate of Incorporation

The MCA and ROC will evaluate the application when the preceding processes have been completed. If no issues are discovered, the application will be granted an incorporation certificate. The certificate of incorporation is a legal document that establishes the legal status of the corporation.

• Opening Of Business Account

After fulfilling the above necessary requirements, one needs to open a business account for the incorporation of the company.

Conclusion

Online Legal India assists you with all aspects of business registration and even offers you an online company registration solution for your convenience. CA/CS professionals are available to assist you with your company registration issues for a little fee.

You can immediately contact the professionals by filling out a small application form on our website, and our staff will contact you shortly after receiving your information. They will investigate your issue and guide you through the whole business registration procedure. Online Legal India is available to assist you in any situation.