If you want to start a business in India, then it is essential to pick the right company structure as per your business requirements and related activities. The right business structure will allow your enterprise to operate efficiently and meet business-related targets. If anyone wants to establish a new company, then it is mandatory to get a company registration certificate by following all the guidelines suggested by the Ministry of Corporate Affairs (MCA). Currently, as per the MCA, India has made company registration very easy and straightforward in just a matter of few days, and you can register your company from any part of India without going to any Government Office. Scroll down to check more information regarding Company registration in India.
Following is the list of different business structure in India:
- One Person Company (OPC): This business structure was introduced in 2013, and it is the best way to start a company if there is only one director. It also enables a sole-proprietor to carry on his work and sill be part of the corporate framework.
- Private Limited Company: It is the most popular business structure than others. It has directors and shareholders; each individual is regarded as a company's employee. Private limited Company Registration is most famous registration than any other company registration in India.
- Limited Liability Partnership or LLP: It is a separate legal entity, and the liabilities of partners are limited to their agreed contribution.
- Public Limited Company: Public Limited Company has a separate legal existence, and the liability of the company's member is limited to shares they hold.
While starting a new business, it is essential to choose the right business structure as per your requirements and your Income Tax Returns will depend on what kind of business structure you choose. Always remember that each business structure has a different level of compliances that need to be met. It is compulsory to audit the company's account books every year. An entrepreneur must know all kinds of legal compliance he or she is willing to deal with it. Some of the business structures are invested-friendly than others, and they always prefer a recognized and legal business structure.
Following is the list of benefits that you can avail after registering a company:
- Limited Liability.
- Separate Legal Identity.
- Easy Creation.
- Funds.
- Tax Benefits.
- Perform Internationally.
- Existence& Tangibility.
Following are all the essential documents required at the time of company registration through SPICe+ Form in India:
- The Articles of Association.
- Memorandum of Association.
- Declaration by Directors and Subscriber.
- Address proof of registered office.
- Copy of Electricity or Telephone bills of two months.
- If there is an outer country body than certificate of incorporation of outer body corporate.
- Subscribers and Nominees address proof and ID proof.
- If applicable, the Director's interest from other entities.
- Nominee’s assent
- Applicants address proof and ID proof.
- The Declarations of unregistered companies.
- If required, any other documents.
For AGILE-PRO:
- Address proof of registered office.
- Appointment of Authorized signatory for GSTIN
- A copy of the resolution is passed by the Board of Directors.
- Acceptance letter
- Managing Committee
- For opening a bank account identity, pro For opening a bank account addresses, proof of authorized signatory For opening a bank account address proof of authorized signatory.
- For EPFO, specimen signature of authorized signatory.
Documents used as Address proof:
Submit the copies of Voter Card, Passport, Aadhar Card, Electricity Bill, Ration Card, Driving license, and Telephone bill.
Declaration:
The declaration in form INC-9 is auto-generated electronically in PDF format for the subscribers and directors of the Company Registration in India. Company accountant, Charted Accountants will provide a recommendation along with certification which will be presented by the applicant.
Requirements like DIN allotment, incorporation, name reservation, issue of TAN, PAN, EPFO, ESIC, Profession TAX, bank account opening and applicant can obtain the GST from SPICe + form with the help from SPICe+.
Part A:
For new companies, only Name Reservation is necessary.
Part B:
- Incorporation certificate of the company.
- DIN Application.
- Application of PAN.
- Application of TAN.
- Application of GSTIN.
- Registration of EPFO.
- Registration of ESIC.
- Opening of Company Bank Account.
- Registration of Profession Tax for Maharashtra only.
Central governments, Ministries such as the Ministry of Labor, Ministry of Finance, Ministry of Corporate Affairs and Department of Revenue has provided services in SPICe+ form. The new SPICe+ form saves time and makes the company registration process easy. The other forms necessary to be filled with SPICe+ form are SPICe+ AoA, SPICe+ MoA and AGILE-PRO:
- Under MCA services, click "SPICe+."
- Then choose ‘New Application;
- Fill in the application number with approved name.
- Click ‘type of company;
- Then click ‘class of company;
- Then choose 'category of the company;
- After that 'sub-category of company.'
- Then the applicant has to mention the 'Main division of activity of the company.'
- After that, details of the approved name have to be checked in 'Auto-check' in accordance with name administrating rules.
- Submit the part-A form for reservation of the name.
- Part-B has different sections for ‘check form’. The details necessary are:
- Address of the registered office.
- Details of directors and subscribers.
- Details of company resources.
- PAN and TAN card for tax registrations.
- Before submitting re-check the form for any mistakes. Confirmation will occur on-screen on successful submission.
- After successful submission, the applicant has to download Part-B of the form in PDF format to attach with DSC and other required forms. On the MCA portal, all the forms linked to SPICe+ must be uploaded. Then a service request number will be generated for payment to the incorporation of the private limited company.
- After payment, private limited company registration is completed.
Conclusion
The governing authority of private limited companies is the Companies Act 2013. The private limited company is somewhere between a partnership and public owned company. To start a private limited company in India, the minimum of two shareholders are required, and the maximum limit is of 200 members. All private limited companies must use "Pvt. Ltd." in the name of the company. There is no minimum capital required for private limited company registration. It is an easy process for small business owners.