New Company Registration to Start the Business in India

“In order to kick start the business, you can go to have the new company registration. Go through the types of entities that you can get the status to run business in feasible manner.”

When it is to start a new business in India, it requires firstly opening a business entity. There are actually the five types of entities available to conduct the business legally. It includes Partnership Firm, Private Limited Company, Sole Proprietorship, Public Limited, Limited Liability Partnership Company. The business entity that you choose depends upon factors such as ownership liabilities, exit strategy, taxation, investment options and compliance burden.

Here are the details for these different forms of New Company Registration.

Sole Proprietorship

You are the individual and have opened the firm with his own name. Business PAN is not the requirement in this form of business operation, PAN details of the owner can be used in it. It needs to make the registration with government departments on the need basis. You have to register with service tax and excise department. The firm assets can be sold to another person. Moreover, the proprietor is also having the unlimited business liability.

Partnership

Partnership firm comes under the purview of The Partnership Act, 1932. It can have the partnership up to the maximum of 20 and minimum could be 2 members. In a partnership agreement upon the company formation, the capital contributed by each partner has to be mentioned.   

The registration document also entails about the percentage of profit/ loss that each partner can share. Working partners in this firm have the right to draw the salary. A partner can also buy the assets in own name but that partner has to be included in the partnership agreement and in other words, it is the property of the firm.

Limited Liability Partnership

It is a business entity established under the Act of the Parliament. It allows members to maintain the flexibility in ownership and it provides with the liability protection. The partner liability is restricted to his investment.

The Limited Liability Partnership firm has to have its own legal status and PAN number. This type of firm agreement also renders protection to the partners in case if another partner take over any unauthorized action.

Private Limited Company

Private Limited Company enables owners for subscribing the company shares. You can go for the Private limited Company Registration India and attain the status of a PLC. As far as registration is concerned, you have to approach the Registrar of Companies. It deals with the drafting of AOA & MOA that has to be signed by initial shareholders or company promoters.

To look upon the routine activities, directors are there. This form of business entity has burden of compliance more than the limited liability and partnership firm.

Public Limited Company

It has to be seven shareholders to the minimum and this type of company can be listed to the stock exchange. This form of corporate entity needs to disclose key business information publicly and has to follow government compliances.

Public limited Company Registration India needs to register to get the status of a company to run the business legally.