Online Company Registration is the procedure of Incorporation of a new company. Online firm registration in India can be done for a startup, businesses with higher growth aspirations, a micro or medium business or a non-profit organization.
Online Company Registration is the procedure of Incorporation of a new company. Online firm registration in India can be done for a startup, businesses with higher growth aspirations, a micro or medium business or a non-profit organization. Company incorporation is regulated by Ministry of Corporate Affairs (MCA) in India through Companies Act 2013. It is essential as well as beneficial to register a company before starting any business.
Choosing the appropriate structure of online company registration is crucial for a business. Prior to initiating any kind of Company Registration Process, you must have the clear vision about the right structure of company registration.
There are seven main types of online company registration India:
The kind of business structure is the easiest form of company registration in India. One person manages sole ownership which is a sole proprietor. If anyone looking to have full control of their business, this option serves ideal.
One Person Company (OPC)
This kind of business form is recently introduced in the year 2013. As name suggest, one-person company is the best way to start a company if there is only one business owner or promoter. It enables a sole proprietor to carry on his work & still be part of the corporate structure.
Limited Liability Partnership (LLP)
In this business structure there will be minimum two partners and no limitation on the maximum number of partners in LLP Registration. In Limited Liability Partnership, the liabilities of partners are only limited only to their agreed contribution.
Private Limited Company
In the Private Limited Company Registration, there will be minimum of 2 members and a maximum of 200 members. This kind of Company Registration is a separate legal entity with an advantage of limited liability for its shareholders. In this firm each individual is termed as an employee of the company.
Public Limited Company
Presence of at least 7 Shareholders are required along with 3 directors in Public Limited Company Registration. This kind of company registration has a separate legal existence & the liability of its members are limited to shares they hold.
If you decide to have partners in your business, then partnership firm registration is best for you. You need a partnership deed which is an agreement between the partners, which will contain all the duties & obligations between the partners and how profit will be shared.
You can select what business structure best fit with your business and accordingly register your business.
How to Choose The Best Suited Business Structure?
The three critical factors to taking care while choosing to incorporate a company in India are:
Taxation: The kind of business structure will impact in the matter of taxation. The business owner who needs to utilise a corporate structure to take advantage of corporate tax rates should go with C Corporation or S corporation business structure. The business legal structure holds mandate effects on the tax amount you pay. A sole business owner can enjoy the tax benefits by claiming on a personal tax return whereas a trust does not need to pay income tax on profits.
Risk: A business is always risky & business owners should consider opting for a business framework capable of securing their personal & valuable assets from the business responsibilities. A corporation or LLC can detach the personal assets of the owner from the business litigation & creditors.
Complexity: LLCs and corporations need detailed record keeping and adherence to a comprehensive list of needs to control Limited Liability protection.
Control: The level of controlling the business will directly impacts the company registration structure. For example, if you are the business owner and want to manage the company as an individual, then you should be ready to stay as a sole trader and choose your business structure according to that.
Complexity and cost of legal structure: There are numerous legal structures, and each has an ideal set of complications, process, and cost. The kind of company registration will be decide these factors.
Benefits of Company Registration/Incorporation
How to Register a Company in India?
Online company registration in India is now a simple 4-step process. Here is what you will need to acquire:
Documents Required for Company Registration
In India, online company registration cannot be done without proper proof of identity and proof of address.
The company registration procedure in India is a legal process that all business owners require to abide by.