It is often a smart idea to register your company since it gives you insight into the future of your enterprise. By registering it, you are giving it value, a name, & a market reputation. A company registration gives your firm a legal identity in the marketplace, much like a parent's name has significance for their children.

The Ministry of Corporate Affairs is where you go to form a private limited company in India. Going to the corporate office is not required in order to register your business. It may be completed from the convenience of one's home. The registration includes e-form filing, Director Identity Number (DIN), & Digital Signature Certificate (DSC).

7 Types of Company Registration

In India, there are seven different types of Company Registrations:

• Private Limited Company Registration
• Public Limited Company Registration
• One-Person Company Registration
• Nidhi Company Registration
• Limited Liability Partnership
• Section 8 Company Registration
• Producer Company Registration

Private Limited Company Registration

If you wish to run your business as a private entity, setting up a private limited company is a fantastic alternative. Owners often share equal responsibility for liability to safeguard their investments. Unlike shares of public businesses, a private limited company's shares cannot be sold or transferred on the open market.

The following requirements must be met by a corporation in order to be formed as a private limited company, according to the 2013 Companies Act:

• There must be a minimum of two & a maximum of 15 directors (However, one may exceed the limit of 15 after passing a Special Resolution in the general meeting).
• An Indian national must be one of the directors.
• The minimum required membership is two, while the highest allowed membership is 200.
• It is essential to have at least one registered office address in India.

Necessary Documents for Private Company Registration

For the Nominated Directors (Indian Nationals)

Aadhaar Card: All directors and shareholders are required to give a copy of their Aadhaar card, which serves as a crucial form of identity. If your phone number is connected to your Aadhaar Card, it is straightforward to create DSC (Digital Signature Certificate). When completing e-forms for company registration, Digital Signature Certificate is necessary to securely sign crucial documents.

Passport-size photo: A passport-size photo is a crucial piece of identification documentation, and it's also required when filing for a certificate of digital signature.

All directors' and shareholders' self-attested copies of their PAN cards: should be compared to the rest of your documents since your PAN (Permanent Account Number) is a crucial piece of information. Otherwise, the process of starting a firm might halt. It is often a good idea to amend any PAN-related documents before submitting an application for company registration. Aadhaar Cards, Passports, Voter IDs, and Driving Licenses are a few examples.

Self-attested copies of identity evidence: your driver's licence, voter ID card, or Aadhaar card are acceptable forms of identification.

Self-attested copy of address evidence: In addition to providing identification proof, you must also present address verification. Due to this, you may offer any of the following records:

• Bills for electricity, telephone, and mobile phone service, as well as the most recent account statement from the bank.
• The name on the invoices & the PAN needs to match for the verification process to go well. These invoices shouldn't be older than two months.

For Directors of Foreign Nationals

Passport

Foreign nationals must present their passport as identification when asked. You must have your passport translated into English before submitting it if it is written in another language.

If the proposed company's director is a foreign person, all identification and address proving documents need to be apostilled.

Size of Passport Photo

You must submit passport-size photos, especially for DSC registration.

Evidence of Address

You may use any of the subsequent documents as proof of address if you are an alien:

Statement from the Bank of Driver's License & Residence Card contains The final page of the most recent transaction

Utility bill from the past two months or less

Documents for Registered Office

Evidence of a business address

You can use the power, phone, water, or gas bill from the registered office as proof of the company address. When a bill is presented for an incorporation certificate, it must not have been more than two months old (COI).

Leased commercial real estate

You must file a Rent Agreement if you operate your business from rented real estate. To register it as your registered office, you also need the landlord's No Objection Certificate (NOC).

Owns commercial real estate

You must submit a NOC even if you are the property's owner. This is thus because there are two separate legal entities—the company and the owner—in the business.

Public Limited Company Registration

Documents for Public Limited Company registration are:

Identity Documentation: Each shareholder and director must present identity documentation.

Address evidence: Evidence of the addresses of all directors and stockholders.

PAN: All directors and shareholders have a PAN number, which stands for Permanent Account Number.

Utility bill: for the anticipated office or the projected registered office of the firm.

NOC: A letter of no objection from the owner of the space where the company's registered office will be placed is known as a NOC.

DIN: Each director is assigned a Director Identification Number(DIN).

DSC: The certificate for the directors' digital signature (DSC).

MOA: Memorandum of Association(MOA)

AOA: Article of Association(AOA)

One-Person Company

In India, one-person company registration, or OPC, is a relatively new idea. Most small businesses or startups perform this kind of registration on their own. No partnerships are necessary because this registration shields the owners from liability.

Due to a single individual being in control of all parts of the business, it is easy to maintain, manage, & run. It is a cross between a private limited corporation and a single proprietorship.

Documents Required For OPC

A passport is referred to as PAN by outsiders.

a photocopy of your ID, together with bank or bill statements (not older than 2 months)

The signature of the sample

The registration office requires the following documents:

bank statements or invoices

A landlord's NOC for rental contracts

copy of a property deed (in case of own properties)

Limited Liability Partnership

Limited liability partnerships (LLPs) are a relatively new type of business entity in India. Entrepreneurs can divide their personal and commercial assets while also minimising their liabilities because it has their own legal identity. In an LLP, each partner's responsibility is determined by the total number of shares in the corporation.

The following demands must be satisfied in order to establish an LLP:

• The authorised partners must all have Indian citizenship, at least one of them.
• There must be a minimum of 2 approved partners, with no cap on the total.

Section 8 Company

Non-profit organisations (NGOs), sometimes referred to as Section 8 companies, are devoted to charitable activities. The goal is to advance the humanities, sciences, literature, education, charitable giving, and environmental preservation through these fields. Members do not get dividends, and any earnings they generate are used to achieve these goals.

The following requirements must be satisfied to register as a Section 8 Company:

• A minimum of two shareholders are required.
• There must be two directors, who may also be stockholders. An Indian national must be at least one of the directors.
• There are no restrictions on spending.
• A registered office address in India is required.

Nidhi Company

Nidhi Companies are non-bank financial institutions. A Nidhi Company may lend to & borrow from its members thanks to its registration.

The Indian company Nidhi Companies was established with the goal of inspiring its customers to be frugal and save money. The members of a Nidhi Company provide all of the company's funding.

As a result, establishing the Nidhi Company is simple. Nidhi Limited should come after the name because they are both publicly traded firms.

It's also important to note that the Nidhi Companies are governed by the Reserve Bank of India.

Producer Company

A business that prioritises agricultural activities is known as a producer company. The formation of a producer corporation requires the participation of ten or more producers. The key tasks that a production company does are as follows:

• Procurements
• Productions
• Harvestings
• Grading
• Poolings
• Handling
• Exports
• Marketings
• Selling

Process of Company Registration

Adoption of the company name

The initial step in starting a corporation is submitting an application for a name reservation. It is necessary to file SPICE Part A when requesting a name reservation. Make sure the recommended name does not sound similar to any already-existing businesses before requesting a name reservation. Furthermore, no trademarks should be reserved for the proposed name. To check if a company name is available, utilise the MCA site.

Application for Digital Signature Certificate

Making an application for a Digital Signature Certificate (DSC) is the second stage in the company registration process (DSC). Data validation is done using a digital signature certificate (DSC), a legally binding document. Digital signature certificates are widely used to sign electronic documents. Apply for the Digital Signature Certificate (DSC) from a certified certifying organisation as a result.

Registration on the MCA Website

To apply for company registration, you must fill out and upload the SPICe+ form to the MCA website. The company's director must first create an account on the MCA website before filling out the SPICe+ form & attaching the necessary files. After enrolling, he or she may log in and enjoy MCA online capabilities like filling out e-forms & seeing public data.

Incorporation Certificate

When the aforementioned procedures are finished, the MCA & ROC will examine the application. The application will be given an incorporation certificate if no problems are found. The legal standing of the corporation is established by the certificate of incorporation, which is a legal document.

Account Opening for a Business

After satisfying the aforementioned conditions, it is required to create a business account in order for company registration.

Conclusion

Making the right business system choice when registering your company online is crucial. The decision you make on the best business system for your company is just as critical as any other business-related choice. Your business can operate efficiently and accomplish its goals with the correct corporate structure. India's legal system mandates that every company register.

However, we've created a thorough overview of company registrations and related application processes in order to make your company registration process as straightforward as possible.