Company Registration
COMPANY REGISTRATION
Generally all Companies which form various new business activities which are popular for this period. Those achievements of the company are as a result of new creations and developments. Recently the Companies Act of 2013, which gave an idea about the classification of the companies based on the nature and the number of the members. For every company’s successful existence, the registration is the only answer for the achievement of the company’s growth. So before going to start your business, it is a mandatory thing to register your company based on the nature which is governed by the Companies Act of 2013. In this article we have clearly dealt with the types and the nature of the company.
Le Intelligensia, a legal firm, we do all the specific types of company registrations. Our legal support team will guide you to solve for your queries regarding the Registration process.
COMPANY REGISTRATIONS
As per the Section 2(20) of the Companies Act of 2013, which defines the definition of the company. It means a company is incorporated under the companies act and it must be registered on the nature and the type of the company. It is very important to know about the different types of company before you are going to enter into the company registration.
The registration which grants the overall benefit to the company and supports the growth. The governmental schemes which are provided only to the registered companies.
TYPES OF THE COMPANY
Generally the Companies are classified into the size, number of the members, liabilities of the company, capital, and controls. The companies are differentiated into certain various types.
Those are :
- Private limited company
- Public limited company
- One person company (OPC)
- Sole Proprietorship
- Limited Liability Partnership
- Partnership Firm
Before initiating your are entering in the company business, Don’t forget to register your company under the suitable company registration under the Companies Act of 2013.
01 - Private Limited Company
A private limited company is run by the private person for the small or medium size business entity. The private limited company does not offer any shares to the open markets or to the public and also limits the liability of the Shareholders.
Basically the private company is owned by one individual who is only responsible for all the assets for the business operation in the company. He can manage all the directors and shareholders of the company and have a separate legal structure from others. The size of the business may be small or medium.
Eligibility criteria:
- Minimum 2 Shareholders and maximum 200 shareholders
- Minimum 2 Directors
- Minimum 1 lakh of paid-up share capital
- Office space in India
The Registered Private limited company should be identified by the suffix “ Pvt Ltd” after the company name. Eg: JK roadway Pvt. Ltd. and Nixcorn Pvt. Ltd.
02 - Public Limited Company
A Public Limited Company is a separate legal entity with the public at large as shareholders. For doing business to an outsized extent, the finest preference would be a Public Limited Company. The public limited companies in India are solely permitted to trade on the stock exchanges and congregate enormous capital from public investors. Thus the Public Limited Company is listed on a stock exchange.
Eligibility criteria:
- Minimum of three Directors and Maximum of fifty Directors.
- A minimum of 7 shareholders is required.
- Minimum 5 Lakhs of share capital.
It has limited liability and also offers shares to the public through the national stock exchange. It provides huge benefits to the people compared to the Private Limited Company.
03 - One Person Company
A One Person Company has just one member, who started the company and all the rights and decisions are associated with him.. A one-person company is classified as a private limited company under Section 3 of the Companies Act, even though there is only one person involved in the business. Moreover, an OPC is covered by all clauses pertaining to a private limited company, unless an independent clause specifically states otherwise.
BENEFITS
- It provides all the advantages of a private limited company, including perpetual succession, protection of personal assets from business liabilities, and status as a distinct legal entity.
- One Person Company's primary goal was to promote entrepreneurship and the corporatization of microbusinesses.
- Minimum 5 Lakhs of share capital.
04 - Sole Proprietorship
A sole proprietorship stands as the most common and traditional form of business, not only in India but globally. A Single owner can perform all the activities in the company. The presence of directors or shareholders is not permitted; the business is solely owned by one person.
The proprietor bears exclusive responsibility for both profits and losses within the firm. Sole Proprietorships are privately owned entities, maintaining confidentiality about company details. Unlike publicly traded firms, they are not obligated to disclose information publicly.
05 - Limited Liability Partnership
A limited liability partnership is an upgraded form of partnership firm the LLP which has as a feature of limited liability from a private limited company and flexibility from a partnership firm.
Who Preferred LLP?
The LLP is preferred by Professionals, and micro and small businesses which are family-owned or closely held.
Eligibility criteria
- At least 2 partners are required
- At least 2 designated partners are required
- Office location should be within the territory of India
- No minimum paid up capital but each partner needs to contribute the capital of LLP.
A limited Liability partnership offers the benefit of “limited liability” to its owners and at the same time, it requires very minimal maintenance.
06 - Partnership Firm
Partnership Firm registration in Chennai, the business arises when two or more people come together to carry out a business to achieve their common business goals.
Indian Partnership Act of 1932 defines a partnership as “the relationship between two or more persons who have agreed to share in the profits of a business conducted by all of them or any of them on behalf of/acting for all”.
BENEFITS
- Partnership firms are flexible to operate.
- The partners of the firm equally share the profit and losses of the business.
Conclusion
A company should be more flexible to adapt to run our business. In the nature of our business, we need to select the suitable company to run our business whether it may be the private, public, sole proprietorship, OPC, LLP and partnership. For every company the registration grants the protection for your company and supports your business. It is more important to consider the causal factors before institution your company business.
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