In India, there are more than 1000 companies that are formed but not registered. And as of the government in India has mandatory the registration process. So, every company must get registered today itself. There are different types of company registration India has. The benefit of company registration is to get legal certification to run smoothly. You can easily do online company registration without any hassle. The easy formation, process, and documentation.
So, In this article, we will be focusing on the types of company registration in India and their features.
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Types of Companies in India & Registration
The mca has introduces many companies and mandated their registration for their smooth running. There are various types of company registration that are :
- Private Limited Company
- Section 8 Company
- Limited Liability Partnership
- Sole proprietorship
- One Person Company
- Nidhi Company
- Public Limited Company
- Partnership Firm Registration
These are the main company registrations that are mandatory for businessperson, companies, and especially a startup. Now in the following paragraphs, we will have a little overview of all the companies which help you in picking the right one according to your requirements.
Private Limited Company
A private limited company is a company that is personally held for small businesses. The liability of the members of a Private Limited Company is limited to the number of shares individually held by them. Shares of Private Limited Company cannot be publically purchased.
Feature in registering private limited company :
- Members– A minimum number of 2 members are needed and the highest number of 200 members can start a company as per the requirements of the Companies Act 2013.
- Index of members– A private company has a right over the public company as they don’t have to retain an index of its members whereas the public company is expected to keep an index of its members.
- Exemptions regarding directors– When it comes to directors, a private company requires to have only 2 directors. With the presence of 2 directors, a private company can come into action. Also, the private company must not select independent directors. The highest number of companies that a person may be selected as a director is 20 in the case of a private company.
- Paid-up capital– There is no requirement to maintain minimum capital of company. You can even start your company with lowest amount as you wish.
- Name– All the private companies must use the word private limited after its name. For example, Deepesh Automobile India Pvt. Ltd, Marriott Hotels India Pvt. Ltd etc.
Limited Liability Partnership ( LLP Company)
This company concept was first founded under the Limited Liability Partnership Act, 2008. An LLP is a composite form of entity which has the features of both, a partnership firm and a Company. The individual assets of partners are not put at risk as the most liability of every partner is defined by his share capital in the entity.
It is a more selected company model for the investors over as they have much higher credibility.
Feature of registering LLP Company :
- Sperate Legal Entity-A separate legal entity from their Members.
- Limited Liabilities of Member-They have the advantage of limited liability for their Members. That is all members are not responsible for other misconducts.
- LLP Agreement-Any agreement (“LLP Agreement”) among the Members supervising the process of the LLP is a private document means confidential to the Members.
- Partners in LLP -At least 2 Partners (18 years and above age) are ” Designated Members”
- Capital Requirement – There is No Capital Requirement for the formation of LLP.
One Person Company ( OPC Registration)
One Person Company (OPC) is the newest in the different types of companies registration in India. It was started under the Companies Act 2013, in support of entrepreneurs who hold the ability to operate a business single handedly, yet strongly. The least paid-up capital of shares in a one-person company can be lowest. Government has waived off the minimum capital requirement criteria.
This new interest to the different types of companies in India was a welcome change as it allowed a single person to take command of the company affairs while other kinds of companies needed a minimum of 2 individuals to function as members in any company.
It is extremely beneficial for owners of small businesses who do not require partners.