Types of Company Registration in India

Table Of Content

• Why do I need to register my company in India?
• How many types of company registrations in India?
• What is the eligibility for company registration?
• What documents do I need for company registration?
• How much does it cost for firm registration?
• What is the process of business registration?
• How many Directors or partners are required for business registration?
• Can ownership be transferred after company registration?
• What is the income tax rate for companies in India?
• Do I need to audit my organization after registration?
• Conclusion

As you all already know if you start a company getting it Registered is very important under the Companies Act 2013. An individual can register its company under three categories, Private Limited, Limited Liability, and One Person Company, whichever suits the best interest of him. Why is Company Registration important? A question everyone should be aware of! Well for the authenticity purpose. There are different types of Company Registration which we will be discussing below. But before this, the directors need to clear up their idea of company structure since the company registration process involves several steps. 

Why do I need to register my company in India?

Company Registration is important for businessmen. Not only it provide authenticity but there are other numerous reasons why a company should get registered, the following reasons:

• The company is labeled as a separate entity. The affairs of the company and partners will be different, nothing combined.
• The company has a perpetual succession. It doesn’t matter if the partners or shareholders keep changing or die, the existence of the company stays.
• The Company shares can also be transferred easily if the company is publicly listed. In a private limited company, there are few restrictions.

How many types of company registrations in India?

There are various types of Company Registration in India. The major ones which almost businessmen opt for are listed below:

• Private Limited Company: It is one of the most common types of company registration. A Private Limited Company is a privately held business owned by investors who have individually made a capital contribution to the business. The dangers of having to deal with obligations that the shareholders must share are lower in a private limited corporation. Dividends from the company’s profits are distributed to them. The most widely used legal acronym among companies is Private Limited. Private Limited is not categorized based on size or industry. Private Limited is a legal abbreviation that is used in any field. For instance, A physician, a store, real estate companies, and so forth.
• Limited Liability Partnership: limited accountability A partnership organization is a type of corporate business structure where the number of partners is unlimited and partners are not subject to unending liability. Regardless of the number of partners or the absence of any partners, an LLP Company is a distinct legal entity in the eyes of the public. An LLP Company is able to sign contracts and hold any type of property. In order for the LLP to operate effectively, the partners must sign a contract with it. This contract safeguards the rights and guidelines shared by the partners and the LLP, but because the LLP is an independent organization, it still has the power to make decisions.
• One-Person Company: One individual can create a corporation with limited liability and total control over its operations under the terms of an individual corporation (OPC). It is a well-liked option for solo entrepreneurs and small businesses in India because it is a legal entity distinct from its owner.  One person oversees all of the work. The solitary individual takes pleasure in the company’s gains and losses.

What is the eligibility for company registration?

Every company has its own eligibility criteria which businessmen need to fit in so that he could register his company under that. We have mentioned the criteria under which a businessman is liable to get it’s company registered is as follows:

Private Limited Company	Limited Liability Partnership	One Person Company
Anyone can open a Private Limited Company but it is compulsory for any one shareholder to be a resident of India.	Any two people who are 18+ can start a Limited Liability Partnership. Also, any of them should be a resident of India.	Anyone who is the resident of India can open up a One Person Company

What documents do I need for company registration?

The documents to get your company registration Online done are as follows:

Private Limited Company	Limited Liability Partnership	One Person Company
1. Pan Card of the Directors. 2. Passport of the Directors. 3. Voter ID Card of the Directors. 4. Driving License.  5. Electricity Bill. 6. Telephone/Mobile Bill. 7. Adhaar Card of the Directors. 8. Bank Statement of the Directors. 9. Passport Size Photo. 10. Ration Card. 11. Recent Utility Bill (For the business purpose)	1. Pan Card of the Directors. 2. Passport of the Directors. 3. Voter ID Card of the Directors. 4. Driving License.  5. Electricity Bill. 6. Telephone/Mobile Bill. 7. Adhaar Card of the Directors. 8. Bank Statement of the Directors. 9. Passport Size Photo. 10. Ration Card. 11. Recent Utility Bill (For the business purpose)	1. Articles of the Association which lays. down the laws on which the company operates. 2. Memorandum of Association (MoA) which states the business for which the company will be incorporated. 3. Proof of ownership of the registered office/NOC from the owner. 4. The Director’s Consent in Form INC-2 will be taken with his PAN Card and Aadhaar Card. 5. A declaration by the professional certifying that all the compliances have been made. 6. Consent and Declaration of the Director of DIR -2 and INC – 9 respectively.

How much does it cost for firm registration?

The company registration fees that we charge for this is minimal around 6500/- plus GST charges which is around 18%. 

What is the process of business registration?

The company registration process differ from each other so we will be discussing all types of business registration separately, which are as follows:

Private Limited Company & One Person Company

The procedure of business registration are as follows:

1. Visit our website www.edrafter.in
2. At the home page click on the legal services and then avail the service of Company registration.
3. There you will get both the option of Private Limited Company and One Person Company, choose according to your requirements.
4. You need to fill in the details such as name, phone number, email address, and any other information that you might want to add up. 
5. After that make payment and a 20-minute consultation call will be arranged with our expert who will be guiding you throughout the procedure.
6. After the call, the document verification will be done. The rest of the procedure will also be through our expert only.
7. Our expert will do the rest of the procedure such as issuing DIN no, DSC (Digital Signature Certificates) for directors, Name search, name registration, and incorporation certificate plus sharing the registered company certificate with you. 

Before you register your private limited company, you should be aware of the advantages and disadvantages of Pvt. Ltd. Company in India that you can read through our detailed blog.

Whereas for the Limited Liability Partnership process: 

1. Visit our website www.edrafter.in
2. At the home page click on the legal services and then avail the service of Company registration.
3. There you will get the option of a Limited Liability Partnership.
4. You need to fill in the details such as name, phone number, email address, and any other information that you might want to add up. 
5. After that make payment and a 20-minute consultation call will be arranged with our expert who will be guiding you throughout the procedure.
6. After the call, the document verification will be done. The rest of the procedure will also be through our expert only.
7. Our expert will do the rest of the procedure such as issuing DIN no, DSC for directors, Name search, name registration LLP drafting and executing the document, LLP registration, and Certificate of the Company.

How many Directors or partners are required for business registration?

In Company Registration in India, the criteria of directors and partners differs from each other. Hence, there is a huge gap between the number of directors and partners in all three of them which are as follows:

Private Limited Company	Limited Liability Partnership	One Person Company
2 minimum directors	2 minimum partners	1 person is needed
Maximum 200 directors and shareholders	No Limit on the number of Directors and shareholders	One Person is needed.

Can ownership be transferred after company registration?

The ownership in business registration in India can be transferred in some and in some, it cannot, it is mentioned below:

In a Private Limited Company, the ownership can be transferred through transferring shares whereas in a Limited Liability Partnership, the ownership is transferred wholly or partly also there is no restrictions on it. In One Person Company, if the owner wants then he/she can give his/her power to someone known and trusted also. 

What is the income tax rate for companies in India?

The Income tax for companies differs in India such as if a company is registered as a Private Limited Company the rate for Income Tax is 25% as well as for One Person Company also it is 25%. On the other hand for Limited Liability Partnerships it is 30% rate for Income Tax in India. 

Do I need to audit my organization after registration?

Under the Company Law, the Statutory Audit is Mandatory in Private Limited Company and One Person Company whereas in the case of a Limited Liability Partnership if the total turnover exceed 40 lakh or if the contribution of the partners goes up more than 25 lakhs then it becomes Mandatory for the statutory report to be made.

Conclusion

Companies which are required to get registered under the Companies Registration Act 2013 in India are legally required to submit their registration application in the ways specified by law when you do it through Offline means. It becomes tedious. eDrafter has bought an Online solution for this from the requirements, steps, and expenses associated with registering the Company in India. We will get it done on your behalf at a minimal fee.