Considering registering company in India and that too in a fast and hassle-free manner. Well, then you are at the right place. We ensure that budding entrepreneurs have the best understanding of various modes of forming a company and provide them a transparent and holistic outlook in selecting an appropriate one.
What is a company?
Technically, a company can be defined as an artificial person created by law with a discrete legal entity and perpetual succession. It is not affected by the death, insanity or insolvency of its individual members.
In layman terms, a company is an association of persons who share a common purpose and unite in order to channelize their talent, resources and skills to achieve specified objectives. Company can be of various types:
What is the process of Company Registration?
- Private Limited Company
- Public Limited Company
- One Person Company
- Non-Profit making Company
Company registration in India is regulated by the Companies Act, 2013 and is administered by the Ministry of Corporate Affairs through the Offices of Registrar of Companies in each State.
As mentioned above, company can be of various types and so is their process of registration. But, primarily the following common steps need to be undertaken to register a company in India:
What are the benefits of company registration?
- Obtaining Director Identification Number & Digital Signatures- These need to be obtained for all the proposed directors of the company
- Obtaining Name Approval- Provide, in order of preference, at least one suitable name upto a maximum of six which are indicative of the main objects of the company
- Drafting of Charter Documents- After name is approved by the Registrar of Companies, Memorandum and Articles of Association containing main objects and rules and regulations of the company need to be drafted
- Filing of Incorporation Forms with Registrar of Companies- Signing and filing of various documents with the Registrar of Companies electronically within 60 days of name approval
- Obtaining Certificate of Incorporation- After processing the form, Registrar will issue Certificate of Incorporation.
Company form of business, provides numerous benefits, major among them are mentioned hereunder:
- Separate Legal Entity- Company has a legal existence separate from its management and shareholders
- Continuity- Once formed, a company has everlasting life
- Members liability limited- The member’s only liability is for the amount unpaid on their shares. The protection given by limited liability is perhaps the most important advantage of company
- Huge amounts can be raised– In comparison to other forms of business like partnership, proprietorship, company has greater flexibility of raising money