Company registration or business registration is the process wherein your business is being legalized and licensed. A company needs to be licensed for it to operate. In the registration of a business the name of the company is checked, if the kind of business it operates is allowed, etc. The government would also be assessing how much tax it is going to collect from the business. In India, company registration is referred to as incorporation of company or formation of a business. Registering your company makes your business a distinguished entity and gives it a legal existence.
Company registration is one of the most popular forms of business registration in India. The Companies Act, 2013, and the Companies Incorporation Rules, 2014, offer guidelines for company registration in India. If you are planning to incorporate a company, then here are the steps for new company registration in India
What are the types of business structures in India?
Let’s try and understand the types of business structures available in India. Here is a list of some of them:
- One Person Company (OPC)
Recently introduced in the year 2013, an OPC is the best way to start a company if there exists only one promoter or owner. It enables a sole-proprietor to carry on his work and still be part of the corporate framework.
- Limited Liability Partnership (LLP)
A separate legal entity, in an LLP the liabilities of partners are only limited only to their agreed contribution.
- Private Limited Company (PLC)
A company in the eyes of the law is regarded as a separate legal entity from its founders It has shareholders (stakeholders) and directors (company officers). Each individual is regarded as an employee of the company.
- Public Limited Company (PLC)
A PLC is a voluntary association of members which is incorporated under company law. It has a separate legal existence and the liability of its members are limited to shares they hold.
You can choose what business structure suits your business needs best and accordingly register your business.
Other forms of business structures include Sole proprietorship, Hindu Undivided Family, and Partnership firms. Please bear in mind, these structures do not come under the ambit of company law.