Types Of Companies in India And List Of Documents Required For Their Registration.

This article will help you to get all information regarding company formation in one place. Company Registration is a very complex procedure. Selecting the right company structure for your business is very important. The right business structure will help your company to operate efficiently and meet your required business goals. In India, every business must register itself as part of mandatory legal compliance. Before we learn how to register a company, let’s try and understand the different types of business structures in India.

 

 Types Of Companies And List Of Documents Required For Their Registration. 

1- For Proprietorship Firm:

Sole Proprietorship firms are one of the most commonly seen business types in our country. Sole Proprietorship Firm Registration is Single Person Firm Registration i.e is the main objective is Open Current Bank Account on the Name of Business so it's a simple form that enables doing business in India with Less Compliance and Less Costing. 

 

List Of Documents

 

1. KYC Proofs of proprietor/owner (Self-attested) (Pan card & Aadhaar card)

 2. 2 Passport size photo)

 3. Passport size photo of proprietor/owner. 

4. Brief description of your company in not more than 200 words. 

5. Aadhar Card Linked contact number of the Proprietor. 

 

2- For Partnership Firm:

 

As per The Partnership Act, 1932"Partnership" is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Persons who have entered into a partnership with one another are called individually, "partners" and collectively "a firm", and the name under which their business is carried on is called the "firm-name".

 

List Of Documents

 

1. KYC Proofs of All Partners (Self-attested) (Pan card & Aadhaar card)
2. Passport size photo of All Partners. 

3. Partnership deed between the partners. 

4. Brief description of your company in not more than 200 words.

5. Mention the name of the signing authority. (Name of Signing Authority, a letter of Authorisation in his name signed by all partners and his KYC)

6. Aadhar Card Linked contact number of All Partners. 

 

3- For Limited Liability Partnership (LLP):

 

Because of the potential for growth of the service sector, the requirement of providing flexibility to small enterprises to participate in joint ventures and agreements that enable them to access technology and bring together business synergies and to face the increasing global competition enabled through WTO, etc.,

 

Limited Liability Partnership ideal for those professionals who are already regulated such as Company Secretaries, Chartered Accountants, Cost Accountants, Lawyers, Architects, Engineers, Doctors, etc. 

 

List Of Documents

 

1. KYC Proofs of All Partners (Self-attested) (Pan card & Aadhaar card)

2. Passport size photo of All Partners. 

3. Partnership deed between the partners. 

4.  Brief description of your company in not more than 200 words. 

5. Mention the name of the signing authority. (Name of Signing Authority, a letter of Authorisation in his name signed by all partners and his KYC)

6. Name approval letter/Certificate of Incorporation. 

7. Aadhar Card Linked contact number of All Partners. 

 

4- For Private Limited Company:

 

Private companies represent a different set of relationships in terms of ownership, risk, and reward than public companies. Since private companies do not access capital markets, they require less rigorous protection for their shareholders. They however represent an important organizational form for the conduct of business. Therefore there is a case for lighter regulatory overhang over private companies. The existing law provides for certain relaxations to private companies on account of their nature. We are of the view that this approach should be continued and amplified where appropriate. While good Corporate Governance is equally important for the success of such private companies, the obligation for dissemination of information of corporate processes should be so structured that such enterprises do not lose the flexibility in the conduct of their business. In particular, the law should enable a private company to take any decision it is otherwise empowered to take, without observing the formalities of the Act if the members of the company unanimously agree. A simplified circular resolution procedure should also be considered where unanimity is not possible. Since disputes may also arise amongst the members of such companies, the costs of which may ruin the company, the regime for private companies should contain dispute resolution procedures, simplified to the extent possible.

 

1. KYC Proofs of All Director (Self-attested) (Pan card & Aadhaar card)

2. Passport size photo of All Directors. 

3. Brief description of your company in not more than 200 words. 

4. Mention the name of the signing authority. (Name of Signing Authority, a letter of Authorisation in his name by Board of directors and his KYC)

5. Name approval letter/Certificate of Incorporation. 

6. Aadhar Card Linked contact number of All Directors

 

5- For One Person Company (OPC):

 

The concept of ‘One Person Company was introduced in the Companies  Act 2013. An OPC is a Smart way to start a company if there is only one promoter or owner. It enables a sole-proprietor to carry on his work and still be part of the corporate framework.

 

One person company have the following characteristics:- 

 

a) OPC may be registered as a private company with one member and may also have at least one director;

 

b) Adequate safeguards in case of death/disability of the sole person should be provided through the appointment of another individual as Nominee Director. On the demise of the original director, the nominee director will manage the affairs of the company till the date of transmission of shares to legal heirs of the demised member.

 

c) Letters ‘OPC’ to be suffixed with the name of One Person Companies to distinguish it from other companies.

 

List Of Documents

 

1. KYC Proofs of All Director (Self-attested) (Pan card & Aadhaar card)

2. Passport size photo of All Directors. 

3. Brief description of your company in not more than 200 words. 

4. Name approval letter/Certificate of Incorporation. 

5. Aadhar Card Linked contact number of All Directors

Steps To Be Taken To Incorporate A New Company

 

STEP 1 - 

 A- Select, in order of preference, at least one suitable name up to a maximum of six names, indicative of the main objects of the company.

 

B- Ensure that the name does not resemble any other already registered company and does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950) by availing the services of checking name availability on the portal.

 

C- Apply to the concerned RoC to ascertain the availability of name in eForm1 A by logging in to the portal. A fee of Rs. 500/- has to be paid alongside, and the applicant's digital signature proposing the company has to be attached in the form. If the proposed name is not available, the user has applied for a fresh name on the same application.

 

STEP 2 -

A- After the name approval the applicant can apply for registration of the new company by filing the required forms (that is Form 1, 18, and 32) within 60 days of name approval

 

B- Arrange for the drafting of the memorandum and articles of association by the solicitors, vetting the same by RoC, and printing the same.

 

C- Arrange for stamping of the memorandum and articles with the appropriate stamp duty.

 

D- Get the Memorandum and the Articles signed by at least two subscribers in his/her own hand, his/her father's name, occupation, address, and the number of shares subscribed for and witnessed by at least one person.

 

Note- Ensure that the Memorandum and Article are dated on a date after the date of stamping.

 

STEP 3- 

A- Login to the portal and fill the following forms and attach the mandatory documents listed in the form

• Declaration of compliance - Form-1

• Notice of the situation of the registered office of the company - Form-18.

• Particulars of the Director's, Manager, or Secretary - Form-32.

Submit the following eForms after attaching the digital signature, pay the requisite filing and registration fees, and send the physical copy of the Memorandum and Article of Association to the RoC

STEP 4- 

After processing of the Form is complete and Corporate Identity is generated, obtain Certificate of Incorporation from RoC.

 

Additional steps to be taken for the formation of a Public Limited Company:

To obtain Commencement of Business Certificate after incorporation of the company the public company has to make following compliance

• File a declaration in eForm 20 and attach the statement in place of the prospectus(schedule III) OR

• File a declaration in eForm 19 and attach the prospectus (Schedule II) to it.

• Obtain the Certificate of Commencement of Business.

Additional steps to be taken for registration of a Part IX Company:

The Part IX Company is required to file eForm 37 and eForm 39 apart from filing eForm 1, 18, and 32.

The company must file eForm 1 first and then file all the other eForms (18, 32, 37, and 39) simultaneously or separately.

IMPORTANT SOURCE & LINKS - 1- Ministery of corporate affairs Guidelines

                                                        2- The Central Board of Indirect Taxes and Customs Guidelines