The term "company" refers to any legal entity created and regulated as per the Companies Act of 2013. The main factor to consider when establishing a company is to confirm that all legal requirements are met in order for your company to function smoothly. Furthermore, the procedure of Companies Registration is dependent on the type of business you are getting registered for, and several forms of Companies Registration can be chosen as per the Companies Act, 2013, depending on the activity and requirements of the promoters. Everything from the taxes you would pay, the compliance procedures you will take, and the eligibility requirements you must satisfy will all be determined by the organizational structure you adopt. As a result, selecting what sort of Companies Registration to undertake in India is one of the most crucial decisions an entrepreneur should consider. Furthermore, the Indian legal system permits the formation of numerous sorts of corporations under various forms of Companies Registration. We'll look at the various kinds of corporate entities and kinds of company Registration in this article. Various kinds of Companies Following is a list of the many classes and types of business entities present in India, as defined by the Companies Act, 2013. S. No.CriteriaTypes of Companies1.On the basis of sizeSmall Companies Other Companies2.On the basis of No. of MembersOne person Company (OPC) Private Companies Public Companies3.On the basis of ControlHolding Companies Subsidiary Companies Associate Companies4.On the basis of LiabilityLimited shares or by Guarantee Unlimited5.On the basis of a access of capitalListed companies Unlisted companies Types of Companies Registration Because India has so many different sorts of businesses, entrepreneurs must select one that best suits their operations. The Companies Act, 2013, in India, establishes standards for several forms of business formation. Therefore, here's a brief review of India's business types. Benefits of Incorporation of a Company Detailed registration process under Companies Act 2013 Private Limited Company A private limited company (PLC) is a privately held corporation for small enterprises. The legal obligations of members of a Pvt. Ltd. Company are limited to the No. of shares that they own. The stocks of a Private Limited Company cannot be exchanged publicly. There are 3 kinds of private limited companies:- Company limited by shares,Company limited by guarantee, andUnlimited company. Registration Process for a Private Limited Company Application for DSC & DPIN - Every partner must apply for a digital signature as well as a DPIN. The term "digital signature" refers to an online signature used for filing, and "DPIN" refers to the MCA-issued Directors PIN number.Approval of the name - The partners must give MCA with three alternative possibilities for the corporate name, from which one will be chosen. The names supplied should preferably be one-of-a-kind and suggestive of the company's business.Submission for a MOA & AOA - Once the name has been authorised, applicants must prepare a MoA and AoA.Obtain for a Incorporation Certificate - Establishing a private limited business and obtaining an incorporation certificate typically takes 15-25 days. The certificate of incorporation provides proof that the company has been formed. The CIN number is also included.Apply for PAN, TAN & Bank Account - The candidate must next apply for a PAN and TAN. In 7 working days, PAN and TAN are received. After that, the applicant can go to a bank and open a bank account by submitting the Incorporation certificate, MOA, AOA, and PAN. Documents required for the registration of Pvt. Ltd. Company The following documents are required for Private Limited Companies Registration:- A copy of the directors' PAN cardBills for electricity and water (Business Place).Photographs of the directors (passport size).A copy of the directors' Aadhaar card/Voter Id cardA copy of the Rent agreement (for rented property).A copy of the property documents (for owned property).Letter of authorization from the landlord. Public Limited Company A Public Limited Company is one in which members of the general public can buy shares. A Public Limited Company (PLC) is a voluntary membership organisation formed under company law. Because the shares of the company are listed on the Stock Exchange, they are freely traded, making the shareholders part-owners. Before beginning commercial activities, such firms must obtain a Certificate of Registration from the ROC. It has its own legal existence, and its members' legal liability is confined to the shares they own. Registration process for Public Limited Company While a public limited companies registration, keep in mind the following: A public limited company must have at least 7 shareholders.To create a public limited company, a minimum of three directors are required.A minimum of Rs. 5 lakhs in share capital is required.When providing self-attested copies of identification and address evidence, one of the directors' digital signature certificate (DSC) is necessary.The prospective corporation's directors would have to have a DIN.The name for the corporation must be chosen through an application.The corporation's principal object clause must be included in the application. This object clause would specify what a company will do when it was established.The application must be submitted to the ROC along with all relevant papers, including the MOA, AOA, and fully completed Form DIR – 12, Form INC – 7, and Form INC – 22.The ROC must receive payment of the required registration fees.The corporation will apply for a "certificate of business commencement" after receiving permission from the ROC. Documents required for the registration of a Public Limited Company A copy of the directors' PAN cardPhotographs of the directors (passport size).A copy of Aadhaar card or voter id card.A copy of the rental agreement (for rented property).Bills for electricity and water (Business Place).A copy of the property documents (for owned property).Letter of authorization from the landlord. Partnership Company A partnership company resembles a sole proprietorship in many ways. The fundamental distinction amongst a partnership and a sole proprietorship is that a partnership involves more than one person. The functions, responsibilities, and share of each partner are all clearly stated in a legal partnership agreement. As a result, profits made by the firm are distributed among partners in accordance with the formal partnership agreement, and if losses occur, each partner is individually liable. As long as a partnership firm have a legal and registered Partnership Deed, they can operate with or without a licence. Furthermore, the Indian Partnership Act of 1932 governs these firms. Documents required for registration of the Partnership To register a Partnership firm, the following documents are required: Statement in Form 1 with the indicated fees.A true copy of the Partnership Deed which has been notarized and states the following:-The company's name.The nature of the company's operations.The corporation's headquarters or primary location of business.The names of any additional locations where the company does its business.The date on which each partner became a partner in the company.The partners' complete names as well as their permanent addresses.The time period of the existence of the company.Proof of ownership or rent/lease of the business's location.A copy of each partner's PAN card.A copy of Aadhaar or voter id card The Statement must be signed by all of the company's partners and must be confirmed by affidavit in the method indicated. Registered and unregistered Partnership Corporations are the two types of Partnership Corporations. Registration of a Partnership firm is not compulsory; nevertheless, given the benefits, it is sensible to do so. The formation of a partnership firm is accomplished by the Partners drafting a Partnership deed. Limited Liability Partnership (LLP) Limited Liability Partnerships, or LLPs, are a relatively new kind of business concept in India. The LLP is a different legal entity from the partnership entity, with business assets separate from that of the partners' personal assets and limited liability protection for the entrepreneurs. In this type of business, personal assets are not jeopardised. In the event that the business suffers losses, each partner's maximum legal liability is determined by his share capital in the entity. Procedure to Form an LLP Obtaining DSC (Digital Signature Certificate) for the Partners - A Digital Signature Certificate (DSC) is required to get DIN (Director Identification Number or Designated Partner Identification Number) for the LLP Partners. As a result, obtaining a Digital Signature Certificate for the proposed Partner is necessary.Obtaining DIN for the Partners - Once the Partners' Digital Signatures have been obtained, an application for a DIN can be submitted. In most situations, DIN registration happens immediately, but in a few cases, extra documentations must be presented to the DIN Cell for acceptance of the DIN application. DIN and DPIN are the same thing and may be used alternately. Each person could only have 1 DIN.Obtaining Name Approval - After the 2 DPINs are obtained, an application for name reservation can be submitted to the MCA. To ensure a quick approval, the promoters must recall the LLP Naming Guidelines and suggest acceptable names for the LLP in the application. When you submit an application for a name reservation to the MCA, it will be processed by the Registrar of Companies (ROC) in your state of incorporation.Filing for Incorporation - An LLP name approval approval letter will be sent to the potential Partners once the application for name approval has been approved by the MCA. The Partners will have 60 days to file the necessary incorporation paperwork and register the LLP. If the LLP is not created within 60 days of receiving the name permission letter, the name approval must be sought again. The documentations proving possession of the registered office is necessary when filing for the creation of an LLP. The registered office paperwork, along with the signed subscriber's sheet, must be filed with the MCA for registration of an LLP in India after they have been prepared. The Registrar will issue the incorporation certificate if the application for LLP Registration is approved. The LLP will be considered for registration after the incorporation certificate is issued, and an application for a PAN for the LLP can be filed. The LLP Partners then have 30 days to file the Partnership Agreement with the MCA. A penalty will be imposed if the LLP Partnership Agreement is not filed within 30 days. Documents required for registration of a LLP Partners must submit the following documents for the LLP companies registration:- Partners' PAN card or proof of identity.Voter's ID, passport, driver's licence, or Aadhar card as evidence of address of partners. All foreign nationals who would like to register as a partner in an LLP must provide evidence of address, such as a driving licence, bank statement, residency card, or any other government-issued identity card that includes the address.Partners must produce the most recent bank statement, phone bill, mobile bill, or gas bill as evidence of residency.Partners shall also submit a passport-size picture with a white backdrop.Foreign nationals and NRIs require a passport. Proof of registered office address: this must be given during the registration process or within 30 days of the company's establishment. A leasing agreement or a NOC from the landlord must be presented if the registered office is being rented.Digital Signature Certificate (DSC): A DSC is required since the authorised signatory must digitally sign all documentation and applications. One Person Company OPCs are the newest addition to the many forms of Companies Registration available in India, and they are ideal for small enterprises. The Companies Act of 2013 established the one-person company. The main goal was to assist entrepreneurs who were capable of opening a firm. This is also accomplished by enabling them to form a single economic entity. One of the most significant benefits of a One Person Company is that just one member is permitted. On the contrary, incorporating and sustaining a Private Limited Company or a LLP requires a minimum of 2 members. Registration Process for One Person Company Obtain a Digital Signature Certificate (DSC) for the prospective Director: The first step is to obtain a DSC for the proposed Director, which requires the following documents: Address Verification.Aadhaar card.Identification card (PAN).Photograph.Your email address.Your telephone number. Apply for DIN: Once the Digital Signature Certificate has been created, the next step is to apply for the proposed Director's DIN in SPICe Form with the director's name and address evidence.Name Approval Application: When forming an OPC, the name of the company must be chosen. The MCA would have to approve the name.Required Documents: The following documents shall be prepared before being submitted to the ROC:- MoA.AoA.As there is only 1 Director and 1 member, a nominee for that individual must be chosen in case he becomes disabled or dies and is unable to carry out his obligations, the nominee would fill in for the director. Along with his PAN & Aadhar card, his consent in Form INC – 3 would be obtained.Proof of the prospective Corporation's registered office, and also proof of ownership and a letter of authorization from the owner. Submission of forms to MCA: All of these papers must be attached to the SPICe Form, SPICe-MOA, and SPICe-AOA with the Director's and Professional's DSCs, and must be sent to the MCA site for approval.Upon uploading, Form 49A & 49B will be created for the Corporation's PAN and TAN creation, which must be uploaded to MCA after attaching the proposed Director's DSC. Issuance of an Incorporation Certificate: Following the verification, the Registrar of Companies would issue an Incorporation Certificate, allowing the individual to start their firm. Documents to be submitted by the Partners of One Person companies In case of a Foreign Nationals and NRIs, a scanned copy of the PAN card or passport is required.Aadhar Card/ID/Passport/License Voter's Driver's scanned copyA scanned copy of the bank statement, phone or cell phone bill, or electric or gas bill.A passport-sized photograph (scanned).Specimen autograph or impression. For Registered Office A scanned copy of recent bank account, phone or mobile phone bill, or electric or gas bill.A scanned copy of the notarized rental agreement.A scanned copy of the property owner's NOC.A scanned copy of the English Sale Deed/Property Deed (for owned property). Sole Proprietorship In this type of company, a single person is in charge of the whole organisation. The only one who will get benefits from the profits and endure the loss is that person. The sole proprietorship is not governed by any specific statute. The commercial responsibility of the owners of such corporations is unlimited. That means that the owners' personal assets might be seized in order to pay for corporate liability claims. Transferring the ownership of a sole proprietorship from one person to another is not feasible. Process of registration for Sole Proprietorship Obtaining a PAN number. This step is not required if the person already has one.The next step is to give the company a name.Although no official registration is required, the next step is to create a business bank account.While not required, an individual can register as a Small and Medium Enterprise (SME) under the MSME Act. If a person's annual turnover exceeds Rs 20 lakh, he or she may be required to register for GST. A Shop and Establishment registration can also be obtained. Documents to be submitted for Sole Proprietorship The below mentioned documents are necessary for the sole proprietorship companies registration:- The business's utility bill.The bank's KYC credentials.The Shops and Establishment Act grants a licence.The proprietor's income tax returns. Any two of the credentials, along with the proprietor's identity and address proof, might be used to create a bank account. Section 8 Company A company that is incorporated as a Non-Profit Organization (NPO) is known as a Section 8 business. The primary goal includes the promotion of the arts, business, charity, education, environmental preservation, etc. As a result, any earnings or other revenue generated is used to further the objectives. It works in the same way as a limited company, with all of the rights and responsibilities that come with it. It's important to note that it's distinct from a company in one key way: it can't use the terms "Section 8" or "Limited" in its name. Registration Process under Section 8 Company DSC and DPIN applications: All partners must apply for an MCA-issued digital signature and DPIN.Name approval: The partner must present MCA with three distinct name ideas from which one will be chosen. The names supplied should preferably be unique and indicative of a corporation's operations.Other authorities' permission: The Registrar of Companies may request the candidate to provide the approval or consent of any department, governing body, relevant authority, or Ministry of the Central or State Government about the work to be undertaken.Obtaining a Section 8 Company License: Once the corporation's name has been authorised, the MCA must be contacted to obtain a Section 8 Company licence. The Registrar shall wait 30 days for any objections received in response to notices placed in newspapers. The Registrar may also consult with any other regulatory organisations or authorities as needed. After that, the Registrar of Companies may award the licence with or without limitations, depending on its discretion. The Registrar will direct the firm to include such licence requirements as the Registrar may specify in this regard in its MOA or AOA, or in both, or partially in one and partly in the other. Submission of the MOA and AOA: Once the licence has been received, an individual must prepare the MOA and AOA. However, the corporation's purpose should always be only for charitable purposes. MOA and AOA are both submitted with the MCA along with the subscription statement.Obtain a Section 8 Business Incorporation Certificate: Forming a Section 8 company and obtaining an incorporation certificate typically takes 15 to 25 days. The Certificate of Incorporation establishes the existence of a corporation. It also contains the CIN (Company Incorporation Number). The Registrar will wait 30 days for any probable individual's objections, in response to notices placed in newspapers. Additional regulatory agencies and authorities may be consulted by the Registrar. Following that, the Registrar of Companies may award the licence at its discretion. And such a licence may include requirements that the Registrar deems relevant.Get a PAN, TAN, and a bank account: After that, an individual must get a PAN and a TAN. In 7 working days, PAN and TAN are acquired. After that, an applicant can open a bank account by submitting the incorporation certificate, MOA, AOA, and PAN to the bank. Documents required for Section 8 Companies Registration Certificate of Digital SignatureDIN of the director.MOAAOA.Identification verification for members, such as an Aadhar Card/ passport/ voter ID.Photographs (passport size)Information about the directors (if the members are other corporations or limited liability partnerships).Address Verification. Conclusion In India, under the Companies Act 2013, no Companies Registration may be considered as a corporate entity until it is registered with the registrar of companies (ROC). A business does not become a separate legal entity from its members until it is registered. As a result, forming a corporation is a vital and critical step in realizing your ambition of becoming a successful entrepreneur. Read our article:How to Check Company Name Availability?