Company Registration in India:
Registering a company in India is an important step in incorporating an entity. And registering it in under the right business structure is even more important for its existence. Therefore choosing the right business module is an essential decision in the whole process of Company Registration as it will allow you to have efficiently operating entity and help in meeting the set targets of the enterprise. It is legally mandatory for any company to register itself. And to understand the New Company Registration procedure it is important to have the basic knowledge of types of companies and their registration process in India before starting your own enterprise.
Types of Company Registration in India:
In India the different companies that can be registered under the mandated provisions are-
- One Person Company– It is the best business module if there is only one owner. The owner can be a part of other corporate framework and still be the owner of the company. It is totally new form of business in India.
- Sole-Proprietorship Firm– It is a type of company where there is only one proprietor or sole owner. He/ she might employ people under them. Such a firm does not have separate legal identity of its own which means it is not distinguishable from its owner.
- Partnership Firm– It is a type of entity which has to be registered under the Partnership Act, 1932. It has minimum of two partners and maximum of 20 partners coming together to incorporate it. It has to be registered with the Registrar of Partnerships.
- Section 8 Company– A Section 8 Company is form under the said section of the Companies Act, 2013. It is a popular form of Non- Profit Organization or NGO Registration in India.
- Private Limited Company– It is ideal for the business entities having huge turnovers. It has separate legal identity which makes it distinct from its owner or founders. It is consists of directors, management and shareholders.
- Public Limited Company– It is also ideal form for companies having a very high turnover. It is incorporated as per the Companies Act guidelines. The liability of the members of the company depends upon the number of shares held by them.
- Limited Liability Partnership-In, an LLP the liability of each partner is limited upon their contributed share. This is ideal for service oriented business or one that needs low investment.
Process of Company Registration in India:
All the above said types of enterprises undergo through the same basic steps of Company Registration. However, the nature of the company gives certain additional steps in its registration procedure. The basic steps of Company Registration are as follows:
- Acquiring a Digital Signature Certificate (DSC).
- Getting Director Identification Number (DIN).
- Applying for approval of a name.
- Getting New User Registration or registering in the Ministry of Corporate Affairs (MCA) portal.
- Getting the Certificate of Incorporation.
In addition to these common steps each and every type of entity requires certain more steps for their incorporation. These steps depend on the nature of the company to be incorporated.
Statutory Bodies involved in Company Registration in India:
- Registrar of Companies (ROC)
- Ministry of Corporate Affairs (MCA)
- Securities and Exchange Board of India (SEBI)
- Registrar of Partnership
- Reserve Bank of India (RBI)
- Company Law Board
- Ministry of Environment and Forest
Important regulatory statutes for Company Registration in India:
- The Partnership Act, 1932
- The Reserve Bank of India Act, 1934
- The Chartered Account Act, 1949
- Companies Fund Act, 1951
- The Companies Act, 1956
- The Monopolies and Restrictive Trade Practices Act, 1969
- The Chartered Secretaries Act, 1980
- The Environment Protection Act, 1986
- The Securities and Exchange Board of India Act, 1992
- The Companies Amendment Act, 2006
- The Companies Act, 2013
- The Companies (Amendment) Act, 2019