In modern India businesses are promoted by the government through their various schemes like Startup India and Make in India schemes of the GOI. This is because the government is trying to make India self-reliant. This dream can be possible if India starts creating opportunities. To become self-reliant is not an easy task, nor does it mean to break down the foreign relations. With this idea of government, they motivated hundreds of people to start their own business in India. The very first thing to implement any business plan is to create a company. There are various types of company registration in India. Hence while choosing one for your business you must be extra cautious. For the same purpose we have written this blog regarding the form for registration of companies in India. Continuous reading of this write-up till the end will give you a clear picture regarding the company you should opt for your business.
Different Types of Business Registration Under Companies Act
There are various types of registration of companies given under the Companies Act of 2013. They are divided into various subcategories on the basis of the size, liabilities, control, members etc. some of the key types are mentioned below in the table:
| Type of Company | Description |
| Size Basis | There are certain companies which are formed on the basis of their size. For instance small companies |
| Member Basis | As companies are juristic persons they are run by their members because they cannot do things on their own. Hence there are some companies which are formed on the basis of the number of the members. The best example for the same is Private Limited Company, One Person Company and Public Limited Company |
| Control Basis | Some companies are in the control of other companies. These companies are basically formed on the basis of the control. Few such companies includes subsidiary company, holding company, associate company etc |
| Liability Basis | There are some companies which are formed on the basis of the liabilities. These companies are companies which are limited by shares and guarantee. |
| Capital Access Basis | The last form of companies are those which are incorporated on the basis of the access to capital. These companies can be listed or unlisted companies. |
What are the Key 7 types of Company Registration in India?
If you go through the Companies Act of 2013, you will come to know about the multiple types of company formation mentioned under the company law. These are suitable for different types of entities. As per the business type and the work one needs to obtain a suitable company for one’s business. The 7 most relevant types of incorporation of companies with respect to today’s business culture are mentioned below:
Private Limited Company Incorporation
Pvt Ltd company registration is suitable for those who are doing their business on a broader level. Their business is not just limited in a particular area. Also they have plans to expand their business in future. Their business plan includes investors and fundraising. Then Private Limited Companies are suitable for them. These companies are formed with a minimum two directors and maximum the number can go up to 200 directors. They are incorporated online with the help of the Ministry of Corporate Affairs.
One Person Company Registration
There are many business owners who want to start their business on their own without involving any second party in it. Also they want to enjoy the qualities of the corporate bodies so One Person Company is the best option for them among the different types of business registration. This is a newly evolved type of company. It came from the idea of sole proprietorship firms. For the incorporation of such entities only one director is required. Their process of formation is online and can be done through MCA.
Section 8 Company Registration
There are certain types of business owners who want to register their non-government organization. But due to lack of knowledge sometimes they end up registering under the wrong NGO type. There are a total three types of NGOs in India among them the only NGO which offers the qualities of a corporate body is Section 8 company registration. Hence it is suggested that those who want to register an NGO must opt for this type of company. The entire process of registration is online and can be done through the government portal of MCA.
Limited Liability Partnership Firm
In 2008 a law came that is the Limited Liability Partnership Act or LLP Act of 2008 that is particularly applicable on the LLPs. This act gives all the terms and conditions which are applicable on the Limited Liability Partnership Firms. These are the modern version of partnership firms which have all the things similar to body corporates. Their registration process can also be completed through the Ministry of Corporate Affairs just like other corporate bodies. For the incorporation of this type of entity at least two partners are required.
Partnership Firm
Under the Partnership Act of 1932 the concept of these partnership firms has been given. These are the firms which are suitable for small businesses. They are not corporate entities. They have to register with the local registrar. Their process of registration if offline. The entire things related to the partnership firm has been mentioned under the partnership deed and it got registered with the local registrar. The jurisdiction of the registrar is as per the business address proof. For this as well at least two partners are required.
Sole Proprietorship Firm
Among the different types of business registration, a sole proprietorship firm is also there. These are the companies which are perfect for those business owners who want to start their business on a local level. They do not have any plan to expand their business further. Some of the common examples of the businesses for which this sole proprietorship firm is suitable are petty food businesses, tea stalls, local kirana shops etc. These entities neither require any registration nor have any compliances. They just need to take GST registration and they will be recognized.
Public Limited Company Registration
This is the type of entity which is not that common among the business owners. This is rare because it is suitable for the giant businesses which need time as well as a big sum of money to establish. Their registration process is also online and they also need to register before the Registrar of the companies. For the establishment of such companies at least seven directors are required.
Types of Company Registration Process
The registration process of different entities varies as per their type. There are mainly two types of processes for the registration of businesses in India which are mentioned below:
Process of Registration for Body Corporates
- Visit the official MCA portal of the government
- Fill the Spice+Part A form and submit it. It is for the name approval
- Once the name of the entity is approved complete the Spice+Part B form
- Upload all the documents
- Pay the requisite fees
- Check the entire application once again
- And after checking the application submit it before the registrar of the companies
- Verification of the company by ROC
- After successful verification incorporation certificate of the company will be issued by the registrar of the companies
Process of Registration of Partnership Firm
- Collect the documents of the partners
- Draft a partnership deed
- Tak approval of the partners with respect to the partnership deed. All the partners must be agree with the deed
- Take signatures of the partners on the partnership deed
- Take signature of the two witnesses
- Figure out the jurisdiction of the registrar office
- Register your partnership firm with the registrar after paying the stamp duty
Conclusion
In India, there are different types of business registration. These include Private Limited Company for businesses with expansion plans, One Person Company for sole proprietors, Section 8 Company for NGOs with corporate attributes, Limited Liability Partnership Firms governed by the LLP Act, Partnership Firms for small businesses, Sole Proprietorship Firms for local ventures, and Public Limited Company for larger enterprises. The registration processes differ, with body corporates typically registering online via the MCA portal, while partnership firms involve collecting partner documents, drafting a partnership deed, gaining partner approvals, and registering with the local registrar after paying the requisite stamp duty.
FAQs
- What are the different types of business registration in India?
There are various types of business registration in India which includes nut not at all limited to private businesses, public businesses, partnership firms, sole proprietorship etc.
- How to register a company in India?
By filing the required documents before the competent Registrar of the Companies you can register a company in India.
- Is it necessary to register a company?
No, it is not necessary to register your company in India under the company law.
- Is StartupFino helps in the registration of the business?
Yes, Startupfino helps in the registration of the business.
- How StartupFino helps in the registration of business?
By providing advice to choose the best form of entity as per your business to filing and getting certification of registration StartupoFino assists you.
