In India, there are primarily four types of companies that can be registered:
- Sole Proprietorship
- Partnership Firm
- Limited Liability Partnership (LLP)
- Private Limited Company (PLC)
The registration process for each of these types of companies is different. Here is a brief overview of the process for each type:Sole Proprietorship: A sole proprietorship is the simplest form of business registration in India. It does not require any formal registration with the Registrar of Companies (ROC). However, you may need to obtain licenses and permits from the local government authorities depending upon the nature of your business.
A partnership firm can be registered either under the Partnership Act, 1932 or the Limited Liability Partnership Act, 2008. The registration process involves obtaining a Partnership Deed and registering it with the Registrar of Firms. Once the Partnership Deed is registered, the partners can apply for a PAN card and open a bank account in the name of the partnership firm.
Limited Liability Partnership (LLP):
To register an LLP, you need to first obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN) for all the partners. Once this is done, you need to file an application for the name approval of the LLP with the ROC. After name approval, you need to file the incorporation documents, including the LLP Agreement, with the ROC to complete the registration process.
Private Limited Company (PLC)
In India, a Private Limited Company (PLC) is a type of company that is privately held and has limited liability. This means that the liability of the company’s shareholders is limited to the amount of money they have invested in the company and they are not personally liable for the company’s debts or losses beyond that amount.
For Private Limited Company Registration in India, you need to follow these steps:
- Obtain a Digital Signature Certificate (DSC) for the proposed directors of the company.
- Obtain a Director Identification Number (DIN) for the proposed directors of the company.
- Reserve a unique name for the company through the Ministry of Corporate Affairs (MCA) website.
- File the incorporation documents, including the Memorandum of Association (MoA) and Articles of Association (AoA), with the Registrar of Companies (RoC).
- Obtain the Certificate of Incorporation from the RoC.
After incorporation, a Private Limited Company must comply with various legal and regulatory requirements, including the maintenance of statutory registers, holding of annual general meetings, filing of annual returns and financial statements, and payment of taxes.
PLCs are popular among entrepreneurs and investors as they offer limited liability protection to shareholders and provide a separate legal entity that can own assets, enter into contracts, and sue or be sued in its own name.