India is the biggest and fastest growing market with great opportunities for businesses & startups. Therefore, people who are planning to be an entrepreneur have a great platform with loads of opportunities. It just need a kick start. To convert your dreams into a running entity you need to register the company under Companies Act 2013. Registration of the companies done under the Ministry of Corporate Affairs (MCA), and now with the availability of online portal application process can be started on the MCA official website. Planetary Accounting & Marketing Pvt. Ltd. caters all the requirements regarding company formation in India.

Types of Business Structures in India

Different types of business structures are running in India with their various benefits & limits, getting aware about all the types will help you in selecting a suitable business as per your objectives.

  1. Sole Proprietorship: A sole proprietorship is the easiest kind of business because it is an unincorporated business entity with the lack of government regulations. It is managed and operated by a single person. This type of business is popular among small businesses & consultants. The owner is personally liable for all the debts.
  2. General Partnership: This kind of business entity runs with the involvement of two or more Partners. These Partners share all the profits and expenses of the company. It is a simple structure & most commonly opted in India. It requires a simple partnership deed which can be created with a verbal consent among all the partners. With this a partner is liable to the action of other Partner.
  3. Limited Liability Partnership: Under this business structure all the partners have limited liability. Partners are not liable for the negligence made by any other partner. Personal assets of the Partners are not under risk, maximum they are liable as defined by their share capital.
  4. One Person Company: A company with a single shareholder is known as the One Person Company. This single person operates and manages the company work as a director. It is defined under Section2 (62) of The Companies Act 2013. It is newly introduced for those who are enough capable to run the business on their own.
  5. Private Ltd. Company: The Private Ltd. Company is the most opted type of business structure, due to availability of raising outside funds. It has a maximum limit of 50 Shareholders and all the shareholders are owners of the company. Liability is limited in it. Issuance of Prospectus and trading shares into public is not permitted in Pvt. Ltd. companies.
  6. Public Limited Company: Public Ltd. companies are highly prestigious but more regulated. Shares of the Public Ltd. companies are listed on the Stock Exchange so they can freely trade their shares publicly in India, minimum 3 directors are required.
  7. Representative Office/Liaison Office: It can undertake only Liaison activities because it is restricted to do any other business activities. It acts as a channel of communication between the parent company & party. Collection of information, Promotion of export/import & simplifying technical/financial collaboration are the major roles of Liaison offices.
  8. Project Offices: It represent the interest of foreign companies which are willing to execute a project in India. These offices are restricted to undertake any other activities than the Project defined. Government of India has granted permission for foreign entities to establish project in India with certain conditions.
  9. Branch Offices: Branch Office is a suitable business structure for the foreign companies looking to establish & expand its business activities temporarily in India. Main purposes of branch offices are import/export of goods & rendering professional services, Performing the research work, technical & financial collaboration, buying and selling agents in India, information technology & software development. Setting up a company in India, branch office requires an approval from the RBI.

Steps to register a Private Limited Company in India

Following are the steps of company registration.

  1. Director Identification Number (DIN): All directors of the company need to have their DIN, this is a unique 8 digit number. DIN is important as Per the Companies Amendment Act 2006. DIN includes full name, father’s name, identity proof, DOB, address proof, PAN, photographs etc.
  2. Digital Signature Certificate: A digital signature is a unique identity for every business entity. Any of the directors can apply for the digital signature because it is mandatory for the documents submission. Documents getting submitted electronically turns authentic with the digital signature. DSC has a certain period of one or two years then it needs to be renewed by the Controller of Certification Agencies (CCA) again.
  3. Application of the Company’s Name: Application have to be done under ROC for ascertaining

the name availability in INC-1 along with the Prescribed fee. If the name you have chosen is not available then under the same application form you can apply for another name. Go thoroughly to the MCA prescribed rules and guidelines before the application.

A name availability letter is immediately issued by the ROC. After the name approval, from the date of application made the validity of the name is for sixty days. The applicant can start the further process of registration by filing the INC-1 form within completion of six months of name approval.

  1. Filing for Charter Documents: Documents like Memorandum of Association (MOA) and Articles of Association (AOA) are required during the company’s registration process.

Memorandum of Association:  MOA contains all the information about the company during the registration Process. Objectives & Powers of the company are provided in details. Relationship between the company and the outsiders are also well described in it. MOA cannot be rectified once created.

Articles of Association:  It defines the rule & regulations of the company. It provide details about the internal affairs of the company. AOA can be rectified, if required.

  1. Payment of Fee: After completing all the documents & formalities of the registration process, you need to pay the necessary fee.
  2. ROC Verification: After receiving the form and required fee, ROC verifies all the attachments like documents and forms. ROC asks for the necessary changes if required.
  3. Issuance of Certificate of Incorporation: If all the documents and formalities were complied with as per the requirement and guidelines prescribed by MCA, the registrar will issue the certificate of incorporation to the company.

Documents you will receive:

After completing all the formalities of documentation & proofs, what you will receive gives a valid and authentic identity & existence to your company.

You will receive the following:-

  1. Birth Certificate of the Company, means Certificate of Incorporation (COI),
  2. Charter Documents of the company, means Memorandum of Association (MOA) & Articles of Association (AOA),
  3. Directors Identification Numbers (DIN),
  4. PAN (Permanent Account Number) & TAN (Tax Deduction & Collection Account Number),
  5. PF/ESI Registrations
  6. Digital Signature Certificate of the company.

All these documents will be required in running your business smoothly.

Advantages of the Registration

Having a registered company is advantageous in itself. Because it removes most of the legal hindrances in advance from the growth of the company and Provides a smooth track to keep running.

  1. Trustworthiness: In India a well known structure of an organization is most acceptable. In the similar way a registered company is more reliable and trustworthy. Raising outside fund is easier due to registered company.
  2. Limited Liability: The liability of the owner is limited to the extent of his shares as it is done once Paid to the shares
  3. Protection of Owner to the business risk: Personal assets of the owner is protected from the business risks. After the registration company gets its separate identity with its own assets and liabilities, so that business liabilities are not the owner’s liabilities.
  4. Perpetual Existence: Owner’s replacement doesn’t affect the company’s existence as it has its separate identity in itself, so it keeps on working even if the owner changes.
  5. Legal Actions: A company in itself treats as an artificial Person. This means that it can sue and can be sued.

We are here to assist you,

Registration process of the company through an online portal on the MCA website has made it easier to start the process. Having little knowledge of laws are fine at the beginning but later it requires the expert knowledge of company laws and business Practices for example: while drafting the charter documents MOA & AOA, taxation etc. Planetary Accounting & Marketing Pvt. Ltd. has 8+yrs of experience in the same field and with our expertise advice & knowledge we will stand with you till the setup of your company.

Our Company has a great experience in setting up of different business structures in PAN India and abroad as well. Yes, we can assist you in countries like, UK, USA & other European Countries. Our Expert’s will guide you at all the levels Legal, Corporate, Government & Business Intelligence.

Some of our services include:

  1. Incorporation of the company,
  2. After the government approval establishment of Liaison Office, Project office, branch offices,
  3. We will assist you in finding the suitable office space,
  4. Complete assistance in tax related services,
  5. Accounting and Audit Services,
  6. Full range of Legal, Corporate, Government services,
  7. Assistance will be provided with the sound and updated knowledge of the registration Process.

Our sole aim is to provide best of our services on a single platform to eliminate the need for companies to search for multiple entities for different services. While helping you in the company incorporation we keeps an eye to minimize the risk factors regulatory, transaction & other business risks, so that your business can run smoothly & efficiently.

So, if you are actually willing to establish a business in India. Let’s come and discuss with us so we can design a strategy as per your type of business based on your objectives.