Different types of companies in India under companies Act, 2013 that can be registered to start a business
Are you looking to start a business in India, but don’t know where to start? In this article, we will outline the different types of companies that are available for registration in India.
We will also provide a brief description of each company type and list the benefits of registering each type of company.
So, whether you are interested in starting a small business or a large corporation, we have the perfect company type for you!
There are various types of companies that can be registered in India to start a business. The most common type is the private limited company, which is similar to a corporation in the United States.
Other types of companies include: public limited company, one person company, partnership firm, and proprietorship firm.
In this guide, we will discuss the differences between these types of companies and help you decide which one is right for you!
Different Types of companies in India that you can registered to start a business in India
Are you looking to start a business in India? If so, you will need to decide what type of company to register.
There are many different types of companies in India, and each one has its own set of rules and regulations. In this guide, we will discuss the different types of companies that are available in India and help you decide which one is right for you!
Different Types of Companies in India
here are different types of companies in India under companies Act, 2013 that can be registered to start a business:
- One Person Company
- Proprietorship Firm
- Partnership Firm
- Limited Liability Partnership (LLP)
- Private Limited Company
- Public Limited Company
One person company
If you are looking to start a business by yourself, you may want to consider registering as a one person company.
What is one person company
A one person company is similar to a sole proprietorship in the United States. The main advantage of registering as a one person company is that you will not be liable for any debts or losses incurred by the business.
Benefits of one person company:
- You will not be liable for any debts or losses incurred by the business.
- The company will have a separate legal identity from you as an individual.
- You can raise capital by selling shares to investors.
Required Documents for one person company Registration:
- KYC Documents
- PAN Card
- Electricity bill
- Bank statements
- Gas, or Phone bill
- Signature of the specimen
- Passport size photo
- Business address proof (Rental agreements, Copy of property deed, NOC of a property owner)
Proprietorship firm
The first type of company that we will discuss is the proprietorship firm. A proprietorship firm is owned and operated by one individual. The main advantage of registering as a proprietorship firm is that you will not be required to file any annual reports with the government.
What is Proprietorship Firm
A proprietorship firm is a type of business that is owned and operated by one person. The main advantage of this type of company is that it is very easy to set up and you will not be liable for any debts or losses incurred by the business.
Benefits of proprietorship firm:
- It is very easy to set up.
- You will not be liable for any debts or losses incurred by the business.
Required Documents for proprietorship firm Registration:
- KYC Documents
- Photograph
- PAN Card
- Bank statements
- Electricity bill, or Phone bill
- Signature of the specimen
Partnership firm
If you are looking to start a business with another person, you may want to consider registering as a partnership firm.
A partnership firm is similar to a limited liability partnership in the United States. The main advantage of registering as a partnership firm is that each partner will only be liable for their own share of any debts or losses incurred by the business.
What is Partnership Firm
A partnership firm is a type of business that is owned and operated by two or more people. The main advantage of this type of company is that it allows you to pool your resources with other partners and you will not be liable for any debts or losses incurred by the business.
Benefits of partnership firm:
- You can pool your resources with other partners.
- You will not be liable for any debts or losses incurred by the business.
Required Documents for partnership firm Registration:
- Partnership firm PAN card
- Partnership deed
- Identity proofs and Address proofs of all the partners
- Address Proof of the partnership firm
- Partnership registration certificate
- GST certificate or any registration document issued by central or state government
Limited Liability Partnership (LLP)
If you are looking to start a business with another person, you may want to consider registering as a limited liability partnership.
A limited liability partnership is similar to a partnership in the United States. The main advantage of registering as a limited liability partnership is that each partner will only be liable for their own share of any debts or losses incurred by the business.
What is Limited Liability Partnership (LLP)
An LLP is a type of business that is owned and operated by two or more people. The main advantage of this type of company is that it offers limited liability protection to its partners.
This means that each partner is only liable for the debts and losses incurred by the business up to the amount of their investment.
Benefits of LLP:
- Offers limited liability protection to its partners.
- Each partner is only liable for the debts and losses incurred by the business up to the amount of their investment.
Required Documents for Limited liability partnership (LLP)
- Address Proof and PAN Card of the Partners.
- Business proof of the proposed Registered Office of the LLP.
- GST certificate
- Business registration documents
Private limited company
The most common type of company in India is the private limited company. This type of company is similar to a corporation in the United States.
A private limited company must have at least two shareholders and cannot have more than fifty shareholders. The shares of a private limited company are not available for public trading.
What is Private Limited Company
A private limited company is a type of business that is owned and operated by a group of shareholders. The main advantage of this type of company is that it offers limited liability protection to its shareholders.
This means that each shareholder is only liable for the debts and losses incurred by the business up to the amount of their investment.
Benefits of private limited company:
- Offers limited liability protection to its shareholders.
- Each shareholder is only liable for the debts and losses incurred by the business up to the amount of their investment.
Required Documents for private limited company
- ID proof: Passport or PAN card of directors
- Address proofs: Aadhar card, Ration card or voter ID, or driver’s license.
- Residence proofs: utility bill of the premise.
- Passport size photograph
- Director’s signature on a blank document
- Business address proof
Public limited company
Another type of company that is available in India is the public limited company. A public limited company can have any number of shareholders and its shares are available for public trading.
However, there are some restrictions on how a public limited company can operate. For example, a public limited company must have at least seven directors on its board of directors.
What is Public Limited Company
A public limited company is a type of business that is owned and operated by a group of shareholders. The main advantage of this type of company is that it offers limited liability protection to its shareholders.
This means that each shareholder is only liable for the debts and losses incurred by the business up to the amount of their investment.
Benefits of public limited company:
- Offers limited liability protection to its shareholders.
- Each shareholder is only liable for the debts and losses incurred by the business up to the amount of their investment.
Now that you know the different types of companies that are available in India, you can decide which one is right for you. Thank you for reading!
Which One is Right For You?
Before making your decision, it’s important that you consult with an experienced business attorney who can help you navigate the process and ensure that you are choosing the right type of company for your specific business needs.
Conclusion:
If you are looking to start a business in India, there are many different types of companies that you can register for.
Each type of company has its own advantages and disadvantages, so it is important that you consult with an experienced business attorney, company secretory, or charter accountant to help you decide which one is right for your specific business needs. Thank you for reading!
Are you an
Entrepreneur or Startup? Do you have a Success Story to Share? SugerMint would like to share your success story. We cover entrepreneur Stories, Startup News, Women entrepreneur stories, and Startup stories
|
Reference: Wikipedia