A strategic business plan, money, marketing tactics, coders, and designers yet you fumble with the basic legalities while venturing. Okay, then allow me to layout to you the essentials required while registering a business.

Therefore, from the inception of your business, you should fulfil all the legalities when it comes to establishing a business because you want to prohibit all the genuine threats. One of the crucial rules that you should never make money transactions through your private bank.As it could prove to be detrimental to you late in the future.

Also if your company is ethically registered then, it will attract many investors and also can raise funds due to proper documentation.

Adeptly, enable me to assist you through the integral steps revolving around the business registration in India.

Selection of Company Name

Your company name has or will leave an impact on the consumers because that is how they would relate to the kind of business you would do it should speak loud about your company.

Guidelines to choose a Company Name

• Your name should relate to the product /service that your company provides. Hence, you open a line for sustainable clothing and your name doesn't relate to the service you provide it would confuse the consumers.
• The name also depends on the type of products/ services you want to give. Quirky names go good with skincare, clothing, makeup brands. While technical terms are needed when you want to vend a gadget.
• The company name should also be unique in its character. To have a proper knowledge of it taking help from a lawyer would be highly suggested regarding the same to reduce the chances of resemblance.
• The company should also, keep in mind those frugal choices would matter a lot when you would likely decide on the domain name. Which also leaves an impact on potential buyers.

Government Rules on Naming a Company

• Companies related to import/export should have a trade license. Similarly, a company selling food items require FSSAI registration.
• Companies registering with Nidhi can use the term 'Nidhi Limited' after as a suffix to their company name.
• Okay, now the important point is that few companies dealing with a certain sector like finance & commerce require government approval Prime Minister, Statutory, Scheme, National, Central Government that holds Union, Small Scale, and Federal.
• A company name that gives a cue like Venture Capital, Bank, Insurance, and Mutual Fund need to get regulatory compliance from the regulatory bodies like SEBI, IRDA, and RBI.
• A company can only be renamed/ name can be changed after 3 years. Also, should adhere to the fullness of the prime object.

Hindrances Perceived while Registering a Company Name

• The official label of 'State' is only entitled to the State Government Company.
• Universal names such as places, people cant are used in such instances. Similarly, technological, corporate terms should strictly abstain.
• The company name should not indulge in the involvement of overseas government. As well as it should not breach any emblems, trademarks include uncouth words.
• There are also restrictions regarding the similarity found between the proposed name and company name leads to removal. Additionally, the name cannot be used if there is a resonance with a limited liability partnership name.

I know this looks like humongous work but you can register your company in a matter of seven days. The process behind is hassle-free work that can be done online from any corner of India.

Categories for Company /Business Registration

Now let us broadly talk about the types of the company one can register from pan India:

Private Limited Company

A Private Limited Company is a sole aim to deal with business assets and not of private assets. Which means each shareholder is liable for the company's total revenue. Besides, it includes maintenance of records of financial transactions, board meetings, and annual reports. While it also limits one to be traded on the stock exchange and neither can it go IPO public.

Eligibility to establish a Private Limited Company

• Number of Directors- Minimum 2 and Maximum 15.
• The number of shareholders- Minimum 2 and maximum no limit. However, one person can act as both director and shareholder.
• Citizenship- At least one director should hold Indian Citizenship.
• Minimum Authorized Share Capital Rs. 100,000 (INR One Lac)

Documents Required 

• Passport Size Photograph
• Copy of PAN Card
• Copy of Electricity Bill
• Sale Deed (if owned)
• Copy of Aadhar Card
• Address Proof(Bank Statement/Mobile/Telephone Bill)
• Copy of Rent Agreement(if rented)
• NOC

Benefits of Private Limited Company

• Proven to be helpful to startups in India.
• Easily transferable ownership.
• Value of business to be based on selling.
• Perpetual succession.
• Raising money.
• Separate property.
• Better Governed.
• Taxed often at lower rates comes with and reaps a lot of benefits.
• Capacity to sue.

Limited Liability Partnership

This concept was introduced in the market in 2008 under a Limited Liability Partnership act. Here also business assets and personal assets are kept separately. Each partner is responsible for their own actions.

Eligibility to form Liability Limited Company

• Number of Directors- Minimum 2 and unlimited.
• Number of shareholders- Minimum 2 and maximum no limit.
• Citizenship- At least one director should hold Indian Citizenship.
• Minimum Authorized Share Capital Rs. 100,000 (INR One Lac)

Documents Required for the Process

• Two Colour Photographs of Promoters/Individuals/ Company/ Director.
• PAN Card of each Shareholder and directors.
• Identity Proof (Voter ID / Driving License/ Passport)
• Address Proof (Bank Statement / Electricity, Mobile, Telephone Bill)
• Proof of Registered Office.
• Utility Bill as proof must be Latest.

Benefits of Limited Liability Partnership  :

• Legal Recognition is given separately to both LLP and partners.
• Paperwork and profit-sharing in LLP are very seamless. Hence, can be formed easily.
• Also gives the owner's tax flexibility like income, expenditure, profits depend on owners' tax returns.
• Easily transferable ownership.

One Person Company 

One Person Company since its inception brought a lot of relief to businessmen in 2013. Previously, a minimum of two directors required for the company setup. With the Companies Act 2013, every entrepreneur dreamt of registering their company with OPC.

Eligibility to establish a One Person Company

• Number of Directors- Minimum 1 and maximum 15.
• Number of shareholders- Sole shareholder can be a sole director.
• Citizenship- Should hold Indian Citizenship.
• Minimum Authorized Share Capital is not required but it should not outshoot Rs. 50 Lakhs at any point in time.

Documents Required for the Process

• Passport Size Photograph
• Copy of PAN Card
• Copy of Electricity Bill
• Sale Deed (if owned)
• Copy of Aadhar Card
• Address Proof(Bank Statement/Mobile/Telephone Bill)
• Copy of Rent Agreement(if rented)
• NOC

Benefits of One Person Company:

• Complete control of the company.
• Lesser compliance compared to a private limited.
• Lawful Identification.
• Makes bank work hassle-free.
• Complete control of the company makes it easier to sell.

Nidhi Company

It is basically a Non-Banking Financial Company or NBFC and doesn't need recognition from the Reserve Bank Of India. In the process, it can borrow and take a loan among its members only.

Eligibility to establish a Nidhi Company

• Number of Directors- Minimum 3.
• Number of shareholders- Maximum 7.
• Citizenship- Should hold Indian Citizenship.
• Minimum Authorized Share Capital is not required but it should not outshoot Rs. 50 Lakhs at any point in time.

Documents Required for the Process

• Passport size photograph of directors
• Self-Attested Copy of Pan Card of Directors
• Electricity/Water Bill (Proposed register office)
• Copy of Property papers (If owned Property)
• Self-Attested copy of Voter Id card /Aadhaar card
• Email Id & Mobile No of all Designated Partners
• Copy of rent agreement (If rented property)
• Landlord NOC (Format will be provided)

Benefits of One Person Company:

• Easily Funded and formed because the risk is lesser.
• The imposition of fewer regulations.
• Has limited liability.
• Micro Banking facility makes the process all the easy.
• No RBI regulations required.

The significance of determining a correct business category constitutes an absolutely crucial step while founding a business. As it highly impacts the revenue collected at the end of each financial year. Choose wisely before venturing into the current business. Online Legal India™ can assist you in the same.