In India you can start a business by registering different constructions according to your type of business and your requirements. Choosing the right business structure is very important to achieve your goals. According to the Companies Act 201, a company is one which is covered by the rules and procedures specified in the Act itself. Therefore, any company that is to be legally identified must register in accordance with the procedure already laid down by the MCA or the Ministry of Corporate Affairs.
Types of Business Registration
The types of business registration in India are:
1.Private limited company: This is most suitable for entrepreneurs who are planning to raise funds like private limited company – IT, e-commerce, manufacturing etc. It’s easy to raise funds. Limited liability on shareholders
2.Liability Partnership – Most suitable for business, construction and family owned business. It has difficulty raising funds. Also it has Limited liability on partners.
3.One Person Company: only 1 founder required. It can’t raise funds. The terms of converting to private company are strict. This composition is not recommend to anyone. There is Limited liability on the founder.
4.Partnership firm – Unlimited liability on partners. Recommended for short term projects
5.Proprietorship firm – The simplest formation. Recommend if you are just experimenting. You cannot have partners
6.Non-Governmental Organization (NGO) – Not just for profit
7.Trust – It is convenient for educational institutions.
8.Public Limited Company – Large companies.
Private limited company registration
A private limited company registration offers limited liability and legal protection to its shareholders. A private limited company in India is located somewhere between a widely paid and widely owned public company. It can register with at least two people. An individual can be both a director and a shareholder in a private limited company registration in Coimbatore.
The liability of the members of a private limited company (PLC) is limited to the number of shares they hold. A private limited company in India can start operations after obtaining a certificate of operation. A PLC can accommodate within 15 working days.
Public limited company registration
Public limited companies are companies whose shares are trade in the stock market or issue fix deposits. For public limited company registration, the company must have a minimum of 3 directors, 7 shareholders and a maximum of 50 directors and will need Rs 5 lakh of paid up capital. A public limited company has all the advantages of a private limited company and the capacity of a large number of members, ease of transfer of shareholding and greater transparency.
Limited Liability Partnership registration
The Limited Liability Partnership (LLP) in India was formed January 2009, which gave it immediate success with startups and business services. Limited Liability Partnership Registration in Coimbatore combines the benefits of a limited liability company partnership. The LLP was introduced to provide a business which is easy to maintain. Also it helps owners provide limited liability. The limited liability partnership the partners can protect from other’s wrongdoing.
One Person Company registration
One Person Company (OPC) has launched as a sole proprietorship refinement. In OPC registration, the sole promoter acquires all the rights over the company. It restricts his / her liability to their contribution to the enterprise. Therefore, stated that the person will be the sole shareholder and director. Also, there may be no opportunity for the employee to contribute to stock options. In addition, if an OPC company has an average turnover of Rs. 2 crore or paid up fund received or Rs. Lakh 50 lakh and above, it has to be converted into a private limited company within six months.
Partnership company registration
Partnership, in common parlance, suggests that two or more people come together to perform a specific task. In the corporate structure of India, the Indian Partnership Act (1932) (hereinafter referred to as the Act), defines a partnership as “a relationship between two or more persons who have agreed to the profits of the business run by all or any of them. They act for all.” Businesses have barriers to ability, capital and skill to run a business at any given time.
Any pay firm that falls into the category of small or medium scale business can win under the partnership, as there is limit legal compliance. It is not mandatory to register a partnership as a pay firm under the Act, but registering a pay register gives the partnership legal recognition and in the event of a dispute between the partners, there are several advantages to settling a claim against a third party. The partnership firm registration in Coimbatore is under a partnership deed, which must written document that is duly sign by all partners.
Benefits of business registration
There are several benefits for the business registration.
Separate legal entity: Before law, the company registration in Hyderabad is separate from the owners of the company, that means that the company exists by the rule of law and can end with the power of law. Not related to the lives of company owners. Owners may exit, but the company lasts forever.
Free transfer of ownership: In case of ownership, there is no choice to transfer all the documents that are related to the business and occupation to another person. But in the case of a company it is easy to transfer the shares of the company, and the person who owns the shares is the real owner of that company.
Transfer of shares happens by simultaneous transfer of share deed and payment to another person. However there is a slight restriction on the transfer of shares of a private limited company.
Company Limited Liability: Owners have unlimited liability in every business type (except LLP). In the event that there is any damage to the business, the owners there are also liable to pay damages to an outsider of the business Registration in Trichy from personal property. But in the case of the company there is no such rule. The amount that the company is responsible for to outsiders can receive from the company, which means that no one can claim their money from the shareholders or the director of the company.