Is Company Registration is mandatory for a business structure?

Yes, Company registration is mandatory for each and every business structure. Company is not just like an entity, it is a big dream of every entrepreneur. An entrepreneur is a source of the formation of company. An entrepreneur who invested his hard earned money and his liabilities for making the company of his own. He only acts as a main source of the economic support of the company. A start-up organization shall be providing his name as an identical entity through the company registration process. Company registration is not an easy process. It is huge process and it maintains more and more rules and regulations given by the Ministry of Corporate Affairs (MCA). It is controlled by the Government of India. Now a days, company registration process can made easily by the advancement in Companies Act, 2013. It is the amendment act of Companies Act, 1956. The 2013 Act contain more and more appreciative concept for young entrepreneur like One Person Company. It will bring the country’s economic growth in world’s economic trade.  According to me, the company registration is made easy with Solubilis Corporate Services. Why because it is the best corporate service provider in India and providing a genuine and honest services while compared to others.

How to make a company

company registration

Company is essentially defines as a legal entity which consist of at least one member as a director. The business structure which contains the director or directors, member or members, nominee director or person which is eligible to register as a company. Company has classified into many times according to its holding members, number of directors, and annual turnover of the company. The most widely used company structures in India are One Person Company, Private limited Company, Public Limited Company, Section 8 company types. The most widely used business structures in India are Sole proprietorship, partnership, LLP (Limited Liability Partnership), Corporation and Cooperative. An entrepreneur may have a huge level of confusion in his stating stage of the business. What company structure has to choose, and set the economic strategy as per the requirement?. First, you can decide the business structure you want to set your business. It may be a solo or partnership. According to that the entrepreneur has to fix the members and initial capital amount. There are five basic business structures are available in MCA.

Sole proprietorship

company registration

It is the more basic and easiest business structure to develop for the start-up business. The entrepreneur will going to select this business structure for easy establishment. In this structure no one is needed for any purposes. The entrepreneur, who is the director, proprietor and owner of the business. All the credits and debts are going to the owner only. The profits of the entity are going to the owner of the entity. As well the owner only responsible for any losses, debts, etc. The economic source of this business structure is only managed by the owner of the entity. The liabilities of the entity fully depend on the owner and he is only responsible for that. It needs any formal procedure to start. But like all the business structure, it must have the business licenses and permit licenses and essential documents to start the entity as sole proprietorship. The owner or proprietor is only responsible for all the decision making process of the entity. The decision may go well or as well as gone wrong sometimes.

Partnership firm

company registration

Partnership firm is like a sole proprietorship firm. But only the difference is the ownership of the business shared. The partnership firm is the single business and its liability of the business only shared by the two or more persons. The each and every partner must be contribute all the actions and reactions of the company like initial capital, liability, profits, man power, laboring cost, losses and debts. In this form you will get a more and more benefits over the sole proprietorship. The personal liability and asset of the partner must be affected severely if any loses occurs. The decision making capacity also enlarged and may have more chances to reduce the defeat in business. In this format, you have to put one partnership agreement for the easy going processes. It is not a mandatory thing, but it is preferable. In future, any partner may have exit from the partnership. As the whole, the partnership firm is more and more beneficial than the sole proprietorship.

Limited Liability Partnership (LLP)

company registration

As the name itself, we can understand it process. This is like a partnership firm. An individual person can be an owner and add two or more persons as his partner. The partner may be owner of any other corporation or LLC. The liabilities of the partners can be limited. The personal assets of the each person’s cannot be affected in this form. The LLC is a hybrid business structure and it have more and more features than the previous type of entities. The liability and contribution of the partners can be limited in corporation, tax benefits and operational flexibility. The owner of an LLP is defined as a member and the two or more persons as the partners. The profits and losses of every partner may be included in their personal tax returns. From this everyone can easily equal their taxes like the partnership firm.


company registration

This type of business structures is not suitable for startup level businesses. Why because it is costly one. It is most preferable for large companies who carried the various employees in it. It is well suggested for well established companies. It is also known as C Corporation and it is separate and independent entity while compared to other form of entities. It is owned by the shareholders. The shareholders are legally liable for all the profits and losses of corporations. This business structure is more complex business structure while compared to other forms in their legal requirements, tax benefits and administrative costs. This type of business structure is rarely used in our country.


company registration

Cooperative business structures are mostly used in service basis. It a business or organization operated and owned by the users who utilize the particular services. The services like art, agriculture, retail business and health care institutions. The profits created by the cooperative can be divided among the members, who use and own the services. That why the members are called as the users-owners. The board of directors and officers can be elected by the cooperative members. The directors and officers have the right to operate a cooperative business. The person can be eligible for a member by buying the shares of the services. But the amount of shares not affects the voting rights of the members.

From the above words, you can clearly observe the types of business structures and need of Company registration. We Solubilis are the leading corporate service provider in all the major cities in India and providing you the best company registration process.  Visit here and have the wonderful registration process from Company registration to ISO Certification. For more clarification about Company registration in Bangalore, Kindly visit our site and have the wonderful team members to assist you in a right way to reach your goal. Feel free to make a call and get amazing services from us. Thanks for reading!!!

Leave a Reply