Company Registration
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 a 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 centrally 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.
Why you should get your company registered?
- Getting Loans on the name of the company to invest in a different company.
- The benefit of your company being a “Separate legal entity” is also there.
- Liabilities of directors are limited, by which they will not be personally liable for company affairs.
- Director of the Company can get tax benefits.
- From the time of it’s establishment the company has the power to take, hold and dispose of the property.
- To build goodwill of your brand.
- You can have a global reach with your company.
- To establish a platform to deal with different kinds of “Industries, suppliers, vendors, and customers”.
- You can make a claim through your company, regarding any legal matter such as “Trademark infringement” and your company can also be sued by anyone, but your personal interests won’t be affected.
- You can distinguish yourself from others by entering into the corporate environment.You can designate money from the general public to invest in your 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 publicly 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, for the protection of the environment, if there is any form of income, then it can only be used for advertising the objects of the company and no profit can be paid to it’s members. Both “Section 8 Company and Section 25 Company” are different forms of a company, which are registered under the Companies Act, 2013 for charitable or not-for-profit objectives.
One Person Company (OPC)
OPC stands as a separate legal entity from it’s members, offers limited liability to it’s shareholders, has a flow of business and is simple to incorporate. One person company is similar to a “Private limited company” but it only needs one single person.
Limited Liability Partnership
In the LLP partnership, every partner holds limited liabilities. It, hence, exhibits components of partnerships and corporations. In an LLP, each partner is not accountable or responsible for another partner’s misconduct or carelessness.
NBFC Company
Nidhi Company is a kind of Non-Banking Financial Company (NBFC). It is determined to borrow and give money to it’s members. It implants the habit of savings among it’s 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 allowed is 200 and the company can have up to 15 directors.
Resident Director
One director of the company needs to be a resident of India. A person is assumed to be a resident if he or she stays in India for at least 182 days during the leading fiscal year, irrespective of their citizenship.
Capital Requirement
Invest as per the necessity of your business, and there is no minimum capital requirement as such to be kept in the company. However, the government fee on company registration is measured on the capital amount.
Unique Name of Company
The proposed name of the company must not be similar or identical to an existing “company’s name or LLP’s name”. Moreover, you must verify with the trademark registry to ensure that your chosen name for the company is also neither similar nor identical to any registered or applied trademark in India.