Company Registration In India can be done in various forms and can get confusing sometimes. The most confusing question that pops up in mind – whether I should incorporate a private limited company, an LLP (Limited Liability Partnership), or an OPC (One Person Company). Isn’t it? No worries! This article will clear your doubts and un-clutter your mind so that you can confidently go ahead and start taking action.
In this article, we will brief you about each form of business based on which you may dig deeper into the form of company you are interested in:
Different Types Of Company Registration
In the Indian legal system, the system allows various types of companies to exist under different Types of company registration in India and the following are :
Private Limited Company Registration :
A Private Limited Company Registration is a privately maintained small business existence, which is one of the highly recommended to start a business in India. The Companies Act 2013 governs Pvt. Ltd. company registration. While a minimum of 2 shareholders is required to start a private company, the limit of members is 200 Companies Act, 2013.
Limited Liability Partnership Registration :
LLP Registration is a type of partnership firm which is mostly preferred by the entrepreneur. It is the easiest form of business structure with the benefit of limited liability. LLP registration gives freedom to partners to form a partnership structure where the liability of each partner is limited to the amount they contribute to the business. Limited liability partnership firm registration means that if the partnership fails, creditors cannot ask for the partner’s personal property or income.
One-Person Company Registration :
A One-Person Company Registration is that has only one person as a member. OPC Registration was introduced to encourage individuals who are capable of starting their own business. As Per Section 2(62) of the Companies Act, 2013, One Person Company means a company that has only one person as a member. One Person Company is bringing the unstructured Proprietorship Business into the structured version of a private company. OPC is opening the path for sole proprietors and Start-Ups.
Partnership Firm Registration :
A Partnership Firm Registration enables a well-recognized business structure formed with the mutual consent of all the partners for a profitable purpose. The firm is managed, owned, and controlled by a set of people that are known as partners and have some shared capital in the firm. A partnership firm is done under the Partnership Act, 1932 with very little documentation and formalities.
Sole Proprietorship Registration :
A Sole Proprietorship Registration owned and managed by an individual. In a sole proprietorship business, there is no legal difference between the owner and the business. To put it in another way a sole proprietorship is not a legal entity, where an is responsible for clearing off the debts of the business. The sole proprietorship is a preferable and popular business form. It is simple and easy to form a nominal cost.
Section 8 Company Registration :
Registration of Section 8 Company under the Companies Act, 2013 as a Non-profit organization. As we all know NPO can be registered as Trust by executing a Trust deed or, As a society under the Registrar of Societies, or, As a non-profit company under Section 8 Company of the Companies Act, 2013.
Public Limited Company Registration :
Public Limited Company Registration in which companies enjoy all the rights of a corporate entity with limited liabilities and is an ideal choice for the small and medium scale enterprises who wish to raise equity capital from the general public. Just like other companies, Public Limited Company is also registered as per the rules and regulations of the Companies Act, 2013. It can be incorporated with a minimum number of three directors and has more stringent rules and regulations as compared to a Pvt. Ltd. Company.
US Company Registration :
The USA is infamously known for being a great business hub. It can enlarge your business and registering your company there would also be a key factor for the success of your business.
For starting a business in the USA, the first step is to start with the company registration process. There are a few steps that need for US company registration. The USA government has given few relaxations to foreign nationals who want to set up a business over there. A foreigner can set up or incorporate a company via online mode either as Inc or an LLC by following a simple procedure. Most foreign nationals are willing to set up a business in the USA, due to its foundational technology, infrastructure, and resources available in the country.
