To operate in India, businesses must first register themselves, according to different types of company registration in India, to fix their organizational structure. The amount of taxes and other compliances are often decided according to the company’s registration type of business entity. Alongside this, the types of company registration also help the business gain advantages in the Indian market and get further assistance from the local bodies. Curious about what are the types of company registration according to Indian law? Then, read more about the types of registration companies in India, their eligibility, and the process. It will also help you determine what type of company registration is good for your business.

Types of Company Registration in India

According to Indian law, multiple types of company registration are available for different types of companies. The company registration process is now seamless, and all types of company registration logos and registration numbers are easily available within two to three weeks of the application process. 

Partnership Company registration

Partnership company registration is a specific company registration of business where two or more partners have a particular ratio to share the profit and losses and jointly conduct the business activities. All partnership firms in India must register according to the Partnership Act of 1932. 

Documents needed

• A duly filled registration application form should be filled out and submitted to the District registrar with the following documents:
• The first thing you need for this company registration type of company is the company partnership deed. It is a type of agreement that clearly describes the takes, duties, liabilities, and responsibilities and shares details of each partner. The authorities should notarize the deed. 
• The company should have a registered name and a valid address.
• The address proof (land deed, sale deed, or rent agreement) should be submitted during the registration process.  
• Individual PAN cards, Identity and address proofs, and business PAN cards, alongside their company-related documents

Private limited company registration

Private limited companies must go for the prescribed type of company registration according to the Companies Act 2013. Private limited companies trade their shares privately to only selected people instead of training publicly through the stock exchange. The stakeholders only need to be liable for the unpaid subscribed capital. Such companies must have at least two shareholders and a minimum of one Indian or Resident Indian director. 

Documents required 

• Valid and legally approved company name
• DIN certificate issued to all present directors
• DSC certificate of each shareholder
• A valid address  proof like the rent agreement, NOC from the office premises owner or Property ownership deed
• Identity proof, PAN card, and passport-sized photos of each shareholder
• Memorandum and Articles of the Association

How to complete registration

Companies need to file the INC 32 or SPICe Plus through the MCA website and submit all the documents. Part A should be filled first. After 20 days or after getting the approval from ROC, part B should be filled. 

One-person company registration

 A company owned by a single individual who holds all the shares and is liable for all the profit must also register to operate in India. Such companies are usually registered similarly to Private Limited companies. 

Documents required

• Identity proof, address proof, and PAN card of the owner
• Nominee details and nominee consent form 
• PAN card and financial documents of the company
• DC and DIN of the owner

Registration

Like Private Limited Companies, registration is also done through the MCA website by filling out the SPICe Plus form. 

Limited Liability Partnership Company

Limited Liability Partnerships (LLCs) are registered in India as per the LLP Act 2008. LLP companies have multiple partners who are owners and shareholders, directors, and managers. The owners are more independent and can manage their assets as they want. Any LLP should have at least two partners, one of whom should be an Indian resident. The LLP should also have a valid address, PAN Card, and name. 

Documents needed

• Office address proof, company PAN card, LLP Agreement that is filed within 30 days of registration
• Identity proof, address proof, and PAN card of each partner
• DSC and DPIN of each partner

Procedure

For agitation, the company officials must fill out the FiLLiP form from the MCA website and wait to obtain the LLP registration certificate. 

Public Limited company registration

Are you an owner of a Public Limited company in India? The company registration type of business entity is also done under the Companies Act 2013. Public limited companies are jointly owned by multiple shareholders (at least seven individuals; one must be an Indian resident) who are liable according to the shares they own. The shares of Public limited companies are usually traded publicly through the registered stock exchange. They can be transferred easily at any time. 

Documents and Registration Process

To complete registration, officials must fill out the SPICe Plus form on the MCA website. First,the Part A should be filled in to get Company ROC; after getting ROPC, part B should be duly filled with the following documents-

• Valid address proof of the company
• DSC and DIN of all shareholders and directors
• Memorandum of association and articles of association
• Valid Identity and address proof of all shareholders alongside their PAN Card details
• Company PAN and other related details

Section 8 company registration

For non-profit organizations, a special type of registration of a limited company is prescribed under Section 8 of the Companies Act 2013. It can be owned by one individual or multiple shareholders. These companies can also be registered as private or public limited companies and are eligible for tax benefits after registration. 

Documents required for registration

• Form INC-12
• Declaration forms 14, 15
• e-AOA in Forms 13 and 14
• IT return details, board reports and audit reports for the last three years.
• Approval or NOC from the central or state regulatory authority
• Resolution copy
• Assets and liabilities of the shareholders

Conclusion

There are different methods available for registering companies in India. Company owners can decide on the process according to their company structure and business. Many organizations based in various parts of India, i.e., Rajasthan or other states, are actively assisting companies in India in registering and starting their business journey!

Registering your startup in India is now a simplified process. It is attributed to the Startup India scheme adopted by the government. Its creation in 2016 is one of the key components of the program to drive innovation and entrepreneurship and to create a fertile ground for startup development. With registration of your startup under the Startup India scheme, you will have at your disposal a range of benefits, including tax exemptions, simplified compliance and funding opportunities.

As per the Startup India rules, a startup refers to a firm working on developing, innovating, and improving products, processes, or services. It could be a Private Limited Company, Partnership Firm, or Limited Liability Partnership (LLP) as an entity option. For the company to be qualified for this scheme, it should not have exceeded revenue of Rs 100 crores in any of the previous financial years. And it should not be more than ten years old since its incorporation.

We are aware of the significance of registration of your startup at CompRegi and how that can make things a lot easier for you as an entrepreneur. Our team members with expertise in the procedure to register in startup India can indeed steer you through each step and make sure you are not distracted from the core task of building your business while our team handles the legal formalities.

Who Can Register a Startup in India

To be eligible for registered startups in India, an entity must meet the following criteria:

• For that purpose, we propose it to be incorporated as a Private Limited Company, Partnership or Limited Liability Partnership (LLP).
• The gross turnover of the company should not exceed Rs 100 Crores during any of the preceding financial years as determined by the accounts of the company.
• It must innovate, develop, or improve products, processes, or services or have a scalable business model with a high potential for employment generation or wealth creation.
• It must be not older than 10 years from the date of its issuance.

Eligibility Criteria for Startup India Registration

To be eligible to register your startup in India, an entity is required to fulfill certain criteria. Here is a detailed breakdown of the eligibility requirements for the Startup India Scheme:

• Age of the Applicant: The eligible candidate for the scheme must be any Indian citizen who is above 18 years of age.
• Age of the Firm: The company should be incorporated at most ten years from now.
• Type of Company: The company should have been enrolled as a Partnership Firm, Private Limited Company, or a Limited Liability Partnership (LLP).
• Annual Turnover: The company’s turnover should not be more than Rs. The company has been able to cut down its expenses and reduce the number of crores spent in any financial year since Incorporation.
• Original Entity: The original promoters should have established the company, not by rearranging or rebuilding an existing corporation.
• Innovative & Scalable: The startup should have a plan for the development or improvement of a product, process, or service. The business model of the startup should be scalable and high potential for creating wealth and jobs.

Companies working towards developing a new product or service can avail of benefits under the Startup India policy if they fulfill the following conditions:

• Concerned startups should work to develop, deploy or commercialize any product or service that is motivated by the current technology or intellectual property.
• Startups should target existing products and improve them or create new ones in order to add value to the customer or simplify workflow.
• Startups should focus only on fabricating a new product that can be both beneficial to the customers and the workflow.

For Registration and approvals, startups are required to obtain approval from the Department for Promotion of Industry and Internal Trade (DPIIT) based on the following criteria:

• A recommendation for an incubator from any post-graduation college.
• Recommendation from a nationally recognized incubator.
• A patent filed and published in the specific area of the product or service in the Indian Patent Office Journals.
• Registration with SEBI for startups that provide services related to funding and equity.
• Funding letter from the government or the state for any scheme that aims to promote innovation.

As far as partnership startups are concerned, these should be owned by women or persons belonging to the Scheduled Castes and Scheduled Tribes in the proportion of 51%. On top of that, they should not have skipped any credit payments.

Documents Required for Startup Registration in India

To know how to register for startup in India keep the following documents ready:

• The incorporation/registration certificate of your startup.
• Funding evidence, if available.
• Power of Attorney of the authorized representative of the company, LLP or partnership firm.
• Demonstration of concept like pitch deck/website link/video (for the startups in validation/ early traction/scaling stages)
• The information on patents and trademarks, if available.
• List of awards or certificates of recognition, if any, available.
• PAN Number

Steps to Register Your Startup With Startup India

Listed below is a step-by-step guide on how to register as a startup in India:

Step 1: Incorporate your Business

The first thing you should do in registration of your startup business is to register a startup as a Private Limited Company, Partnership Firm, or LLP. This will involve producing the necessary legal documents like the Memorandum and Articles of Association (MoA and AoA) and then submitting them to the Registrar of Companies (RoC).

Step 2: Register with Startup India

After your business is legally registered, you can go to the Startup India official website and choose the “Register” option. Fill in the requested information, for example your name, mobile number, and mail address, and then create a password. Upon completion of the registration by you, you will be sent a verification email.

Step 3: Get DPIIT Recognition

The next step after setting up Startup India profile is to obtain recognition from DPIIT. This recognition is paramount for startups to enjoy the tax breaks that come with the Startup India scheme. To obtain DPIIT recognition, log on to Startup India account and click on the ‘Get Recognized’ button. Submit a form with necessary details and attach the given documents.

Step 4: Recognition Application

Application in recognition stage requires you to enter details of your startup, including its name, incorporation date, sector, and a concise description of your product, process, or service. Besides this, you will also have to put down that the startup is eligible and the information is genuine and authentic.

Step 5: Submit the Documents for Registration

After completing the application form for recognition, you are required to attach the required documents mentioned above. All papers must be clear, readable, and in the stipulated layout.

Step 6: Recognition Number

After your application has been approved and documents submitted, a certificate number will be issued to you by the DPIIT. This unique recognition number, which is valid for ten years from the date of incorporation of your startup, is the only one that you will be given. This identification number would be a gateway to the scheme and you can access the benefits under the Startup India scheme.

Conclusion

Setting up a startup in India is not very complicated, but rather, it is a simple task. You just need the right team and necessary documents to handle or your legal matters. Our professional team at CompRegi can guide you in the whole process of setting up your startup in India. We are with you from the time you choose to include your business to when you obtain DPIIT recognition. Our team makes sure that each step is completed accurately and promptly so you can save on time and effort.

Registering A Private limited company in India feels very complicated to you, but don’t worry it has become one of the easiest things to do in 2024. After this article you will be able to register your company even if you are not from a legal background.

We will guide you everything here, which helps you to register your company  as fast &  early.

Read this article thoroughly, We have explained all the procedures here in a Step-by-Step format that fullfills all the legal compliances.

What is a Pvt Ltd Company?

A Private limited company commonly known as (Pvt Ltd company) is a business structure followed in India, where a group of people register their venture as a company in India to make their company as a private firm where more than two individuals hold their stake or share in the company and have limited liability of the organization.

Mostly we have seen, small & mid-sized businesses register this business structure.

Here are some of the following reasons:

1. To maintain the position of individuals in the company.
2. To reduce the liability of the company.
3. To operate the company independently.
4. Creates the separate legal identity of the business.
5. And, helps to maintain the security of the company.

Now in 2024 we can see most of the upcoming startups & private partnered businesses are registering their organization for Pvt ltd company.

Benefits of Registering a Company

There are Incredible benefits of registering your  Pvt ltd company in India:

Here are some of them

• It helps to limit the liability of an owner of a company.
• The company assets get protected from shareholders.
• It helps to Attract foreign investments from angel investors & private grouped firms.
• Easy to raise funds during initial days of the company.
• It increases the existence of the company even if the owner has died, the company will still run in future.

We have explained to you the several benefits of  registering a company. Now you need to know what registration process is involved to register your company as fast.

Pvt Ltd Company Registration Process in India

The registration of Pvt ltd company in India sounds more complicated but actually it’s very easy. You are thinking of how easy it is ?

So, let us tell you, there are 1000s of people who have not graduated from college but are still running the company & growing their businesses to new heights.

It’s clear, I think so. Anyone can register a Pvt ltd company, You just need to be running a proper business that has cash flow coming into the industry.

Pre-Registration Process:

Firstly there are some pre-registration procedures which you have to follow initially.

Follow the Steps:

1. Choose a Company Name: First, check if the name that you want to register for your company is available or not. You find it on the MCA website (Ministry of Corporate Affairs) & if you are facing any issues with this, you can consult a professional. And you must know the name you are registering must be unique and reflect your business goals.

2. Director and Shareholder Details: Second, decide your company’s shareholders or directors and submit their details like the name of the person, the address they are currently living in, and their digital signature certificates.

Registration Process:

Follow the registration process step-by-step.

1. Obtain Digital Signature Certificates (DSCs): All directors who are applying to be a member of the company, they need to submit DSC for online filing of documents.
2. Apply for Director Identification Number (DIN): Each director of the company must have a DIN, which is a unique identification number issued by the MCA to the board directors of  the organization. For DIN you can apple online at the MCA portal. 
3. SPICE+ Form Filing: SPICE+ (Simplified Proforma for Incorporating Company Electronically Plus) is the online form used for company incorporation. It includes all the details about your company, directors, shareholders, and proposed Memorandum of Association (MOA) and Articles of Association (AOA) details collectively.
4. PAN and TAN Application: Through SPICE+, you can apply for the company’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).

Post-Registration:

1. Certificate of Incorporation (COI): Upon successful registration of your company , the MCA will issue a Certificate of Incorporation (COI) to you, which is the legal document confirming the existence of your company.
2. Commencement of Business Certificate (Optional): If the company requires funds for pre-incorporation activities, you may need to obtain a Commencement of Business Certificate (CBC).
3. Bank Account Opening: Now Open the current bank account for the company in which you maintain the financial transactions of your business..
4. Ongoing Compliances: Your company needs to follow the ongoing government compliances like filing  the ROC and tax.

How much time does it take to register a company

The Time required to register a Private limited company in India typically ranges from 10 to 15 days depending from state to state if there are less or no holidays in a month the registration can be completed fastly.

But have some patience during the process if any document is not filed correctly it may result into delays & extra charges.

Conclusion

Registering a private limited company in India can be useful for you if you are in the early stages of your business. It helps to maintain the structure of  your business by which you can focus mainly on the growth of your company. Just follow some of the legal compliances which you have to fill annually to the government like tax details etc. It will be a more convenient option to run a pvt ltd company and helps you operate your business smoothly.

Introduction

Company registration is the official process through which a business entity establishes its legal presence. This involves completing paperwork, obtaining necessary regulatory approvals, and ensuring adherence to legal criteria. A smooth registration process is crucial for compliance, building stakeholder confidence, and creating an open framework for taxation and governance. 

Essential Steps for Smooth Company Registration

The crucial process of legally establishing a business entity through company registration necessitates close attention to detail and compliance with regulatory requirements. Every stage is vital to building a successful business, from choosing the right business structure to getting the required permits and making sure all legal requirements are met. We will examine the ten crucial actions to guarantee a smooth company registration procedure in this extensive guide.

1. Strategic Business Structure Selection: 

The first step in registering a company is to choose the best business structure in a strategic manner. Carefully weighing factors such long-term goals, liability concerns, and ownership preferences is necessary. Selecting the appropriate organizational form—a corporation, limited liability company (LLC), partnership, or sole proprietorship—sets the stage for the entire registration procedure.

2. Comprehensive Legal Compliance Understanding: 

It’s critical to comprehend the legal standards that apply to the selected business structure. Every kind of corporate entity has unique legal requirements, which might include everything from registering the company name to acquiring the necessary permissions and licenses. Having a thorough understanding of these legal subtleties guarantees seamless compliance during the registration process.

3. Thorough papers Preparation:

 An essential part of the registration procedure is gathering and arranging the required papers. This covers—among other things—identification documents for directors and shareholders, evidence of the registered office address, partnership agreements, memorandum and articles of association, and any other pertinent documents required by regulatory bodies.

4. Business Name Reservation:

 It is impossible to exaggerate the importance of obtaining a memorable and distinctive company name. It is essential to carry out a comprehensive search to make sure the selected name is available and hasn’t already been registered by another party. Once confirmed, reserving the company name with the appropriate government body protects its exclusive use and promotes identity and brand awareness.

5. Submission of the Registration Application:

 An important stage in the procedure is sending the completed registration application to the appropriate government agency together with the necessary paperwork. Ensuring completeness and accuracy in the application package reduces the likelihood of needless delays or issues while also speeding up the approval process. In India, company registration is regulated by the Ministry of Corporate Affairs (MCA). Applying for Director Identification Numbers (DIN) and Digital Signature Certificates (DSC) for the company’s directors will start the registration procedure. To receive a DIN and DSC, provide the necessary paperwork, such as identity and residence verifications and photos.

6. Acquiring the Required Licenses and Permits:

 Finding and acquiring the licenses, permits, or registrations required for legal business activities requires careful research into regulatory requirements. To guarantee complete compliance with legal requirements, zoning permits, health permits, professional licenses, and other industry-specific certifications must be obtained.The AOA and MOA act as the company’s charter documents, outlining its goals and internal policies. Make sure the Companies Act, 2013 is followed, and include provisions for share capital, liability, and governance.

7. Creation of a Corporate Governance Framework:

 Encouraging responsibility, openness, and efficient decision-making inside the company requires strong internal corporate governance procedures. In order to maintain operational effectiveness and regulatory compliance, this entails creating company bylaws, holding shareholder meetings, selecting directors, and putting in place financial reporting systems.Send the completed registration form to the Registrar of Companies (ROC) for review together with the MOA, AOA, and any other required paperwork. The Certificate of Incorporation (COI), which attests to the company’s legal existence, is issued by the ROC following verification and approval.

8. Tax Registration and Compliance: 

For any registered organization, adherence to tax laws is mandatory. To comply with tax filing and reporting obligations, obtaining a tax identification number and registering with the appropriate tax authorities are essential. Maintaining compliance with sales taxes, payroll taxes, and corporate income tax requirements guarantees both legal compliance and sound financial practices. To make financial transactions and tax compliance easier, get your PAN and TAN from the Income Tax Department. PAN acts as the company’s unique identification number, while TAN is necessary for withholding and submitting taxes on behalf of suppliers and workers.

In order to abide by indirect tax laws, register for GST if your company’s annual revenue exceeds the threshold. Submit an online application via the GST site, including information about the business’s kind, turnover, and authorized signatories. The company receives its GSTIN (GST Identification Number) after verification.

9. Post-Incorporation Formalities: 

Several post-registration formalities require attention after a successful incorporation. Establishing a corporate bank account makes money transfers easier and keeps personal and business funds apart. Obtaining property and liability insurance reduces risks and protects company assets, and obtaining employer identification numbers (EINs) guarantees adherence to labor laws. To handle financial transactions and uphold accounting integrity, create a specific business bank account. Give the bank the COI, PAN, and any other necessary paperwork to start the account opening procedure.

10. On-going Compliance Monitoring:

 To ensure the registered entity’s operational and legal integrity, on-going compliance monitoring is necessary. Frequent evaluations of regulatory modifications, filing deadlines, and reporting specifications allow for proactive compliance with legal obligations and reduce the possibility of fines or other consequences for noncompliance.

Conclusion:

To sum up, this post has outlined 10 crucial elements for a smooth company registration process. The statement underscored the importance of meticulous planning and compliance with legal mandates during the entire undertaking. It is essential that business owners understand how complicated registration is and, if needed, seek expert advice. Through adherence to these guidelines and support when required, entrepreneurs can guarantee a seamless registration procedure and create their companies on a firm legal basis.

In the end, managing the complex terrain of company registration necessitates careful preparation, a thorough comprehension of the law, and a resolute dedication to adherence. Entrepreneurs may create a legal and efficient registration process and establish the groundwork for their businesses’ growth and success by carefully adhering to these ten crucial steps. Entrepreneurs can confidently and assuredly set out on their entrepreneurial journey by making wise decisions and adhering to regulatory regulations.