Company Registration In India

Company Registration In India

How to Register a Business in India?

Assessing your business under the ideal business structure is a significant choice.

Assessing your business under the ideal business structure is a significant choice. Determine the advantages and disadvantages of the various business arrangements.

 

Why is it important to select the ideal business structure?

The way to decide on a business structure whilst implementing for business registration in India?

The way to Register a business in India?

Picking the proper business structure for your company is as vital as any other business-related action. The ideal business structure will enable your business to operate effectively and fulfill your necessary business aims. In India, each company must enroll themselves as part of the required legal compliance. Before we know how to enroll a business, let us attempt to understand the forms of company structures in India.

 

 

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Which are the kinds of company structures in India?

Let us attempt to understand the kinds of company structures available in India. Here's a list of a few of them:

It is possible to select what company structure is suitable for your company needs finest and accordingly enroll your enterprise. Here's a comparative collection of the favorite small business structures in India.

BASIS

Proprietorship

Partnership

LLP

Private limited company

One Person Company (OPC)

Registration

Not Compulsory

Optional under partnership act 1932

Registered under MCA

Registered under MCA

Can be registered under MCA and Companies Act 2013

Annual Statutory Meetings

No requirements to conduct annual statutory meetings.

No requirements to conduct annual statutory meetings.

No requirements to conduct annual statutory meetings.

Board and General Meetings must be conducted periodically.

No requirements to conduct annual statutory meetings.

Legal status of entity

Not considered as a separate legal entity

Not considered as a separate legal entity

Considered to have a separate legal entity

Considered to have a separate legal entity

Separate legal entity

Members liability

Unlimited liability

Unlimited liability

Liability of its members is limited

Limited to the extent of share capital

Limited to the extent of share capita

Minimum number of member

Sole Proprietorship

At least 2 persons

At least 2 persons

At least 2 persons

Minimum number of 1 person

Maximum number of members

Maximum 1 person

Banking Sector – 10

No restriction

200

Maximum 2 person

Taxation

Taxed as an individual

Tax rate is 30% on the company’s profit

Tax rate is 30% on profits plus cess and surcharge

Tax rate is 30% on profits plus cess and surcharge

Tax rate is 30% on profits plus cess and surcharge

Existence or Survivability

Existence of a Proprietorship business is dependent on the Proprietor.

Existence of a Partnership business is dependent on the Partners. Could be up for dissolution due to death of a Partner.

Existence of a LLP is not dependent on the Partners. Could be dissolved only voluntarily or by an Order of the Company Law Board.

Existence of a Private Limited Company is not dependent on the Directors or Shareholders. Could be dissolved only voluntarily or by Regulatory Authorities.

Existence of a One Person Company is not dependent on the Director or Nominee Director. Could be dissolved only voluntarily or by Regulatory Authorities.

Foreign ownership

Not allowed

Not allowed

Allowed by permission from RBI

Allowed

Allowed if one is the director and other is the nominee. Both the director and the nominee cannot be foreign citizens

Transferability

Not allowed

Not allowed

Can be transferred

Can be transferred

Allowed to 1 person only

Annual filings

Income tax returns with the registrar of the company

Income tax return is filed with the registrar of the company

Filed with the registrar of the company

Filed with the registrar of the company

Filed with the registrar of the company

CorpSeed Registration Cost

Rs.3000/-

Rs.2500/-

Rs.4500/-

Rs.5,000/-

Rs.5,000/-

 

Why is it important to select the ideal business structure?

 

It's essential to pick your enterprise structure attentively as your Income Tax Returns will rely upon it. While registering your business, keep in mind that every business structure has distinct levels of compliances which will need to be fulfilled. By way of instance, a sole proprietor must document just a sales tax return. An organization's books of accounts must be mandatorily audited each year. After by those authorized compliances requires spending cash on auditors, accountants and tax filing experts. Therefore, it's crucial to pick the ideal company structure when thinking about business registration. An entrepreneur needs a crystal clear idea of the kind of this legal compliances he/she's ready to manage.

Some company structures are comparatively investor-friendly than many others, investors will always favor a legal and recognized company structure. By way of instance, an investor might hesitate to provide money to a single proprietor. On the flip side, if a fantastic business idea is backed with a recognized legal arrangement (such as LLP, Company, etc) the shareholders will probably be comfortable making an investment.

 

The way to select a business structure whilst applying for business registration in India?

Let us take a look at a few essential questions every entrepreneur should ask himself until he/she decide in the time of a company structure.

 

Exactly how many owners/partners will your company have?

If you're single person who possesses the entire initial investment necessary for the business, a one person Company would be well suited for you.

 

If your first investment ascertain your choice of company structure?

  • The answer to this question is Yes, if you want to spend less initially, it would be smart to opt for a Sole Proprietor, or even a HUF or even a Partnership. However, If You're Certain that You'll Be able to Recoup the installation and compliance costs, you Can Choose a one Person Company, LLP or a Private Limited Company
  • Willingness to keep the whole liability of the business enterprise.
  • Business structures such as proprietor, HUF have unlimited liability. This implies in circumstance of any default loans, the whole money will be retrieved from the partners or members in profit sharing ratio.
  • Business structures such as LLP, Private limited company structure, the accountability of its members is limited to the quantity of contribution made by the worth of stocks each member retains.
  • In the event of a sole proprietorship, the company earnings is clubbed with the person's other income.

 

Strategies of earning money from shareholders.

As stated before, it's tricky to have investments as soon as your enterprise structure is unregistered. Ensure that you opt for the best structure, seek assistance from a specialist so you register under appropriate advice.

 

How to Register a Business in India?

 

  • Registering a business in India is presently a straightforward 4-step procedure. Here's What you will need to obtain:
  • A  Digital Signature Certificate(DSC)
  • A Director Identification Number (DIN)
  • Registration on the MCA Portal or New user registration
  • Certificate of Incorporation

 

With this, we've covered the fundamentals of how to register a business. In case you still need help enrolling your business, do not worry over it, and allow our team of specialists to guide you. Call us at 9999008018 or email us at info@corpseed.com to get free consulting on company registration in india.


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If you want to have full control over your business with limited liabilities, then OPC is the best choice to start with. But ensure that you convert your business structure (within six months) to the private limited company after crossing an average turnover of 2 crores over three consecutive years or has a paid-up capital of over 50 lakhs.

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