An overview:
There are various forms of doing business like Proprietorship, Partnership, Trust, Society, LLP, etc. Company is also one of them. There are 3 types of the company- Private Limited, One Person Company and Public Limited Company. It is registered with Central Government. It gives you right to suffix the word “Private Limited” for Private limited company, “Limited” for Public Limited company and “(OPC) Private Limited” for One Person company in your business name. Generally, there should be at least two shareholders and directors to incorporate a company, but Government provides an option of One Person Company in which a single person can incorporate a company by becoming its Shareholder and Director. People opt company form of businessamong the others due to its worldwide presence, having big ambitions, unique name, limited liability, to gain trust of their customers due to its legal status, etc.
Benefits of Company Registration
Limited Liability-
Generally in other business if your business fails to pay the dues to your creditors, banks, etc then business owners are liable to pay it from their personal assets but the same is not in case of the company. In case of the company if company fails to pay its dues, then party cannot demand it from the personal assets of the shareholders. Shareholders are liable for only amount they invested at the start of the business. Loss of remaining amount is only suffered by the person who paid the amount to the company
Management and ownership separation-
It is a uniquefeature which is available in company only that management and ownership both are the separate. Sometimes business owners only invest and do not manage it or after a period they want to continue to invest in their business and enjoy the profits but handover the management to others like employees, managing partners etc. But issue arises to them is that they continue to liable for the wrongdoings or acts of the person managing the business. But the same is not in the case of the company. In case of the company business owners are not liable at all for the acts of others. The person who is at the fault will be solely responsible for his acts.
Centrally registered-
Instead ofstate registration, it is registered with the central government due to which your company is worldwide recognizable, and its data and registration can even be verified from the Government site which make it more trustworthy and reliable.
Unique name-
As everyone found in India that a same business name is used by various entities which make it difficult for entity to create a brand of their business, expand their business nationwide or worldwide and make difficult for the customer to identify the original entity and other person take its benefit by starting the business with the same name. This issue is tackled by the Company form of business. Once a name registered for the company, it cannot be registered by any other person or entity. Hence businesses enjoy the unique name and avoid the chances of delicacy.
Transferability-
It is a very important feature of company. When other forms of business are transferred or a partner is introduced in the firm then it requires to surrender the existing registrations including GST, PAN, TAN, EPF, ESI, etc and it will finish the track record of the business but in case of company if the owners want to transfer its business or want to introduce the partner/shareholder, there will be no change in the constitution and no need to surrender existing registrations and apply fresh registrations. It maintains the track record of the company and increases the Goodwill of the company.
Reliability-
Any person can verify the registration of the company from the website of the Government and the name of the directors which build the confidence in the customers and make the entity more reliable.
Loan availability-
There are various criteria of the banks which are checked while sanctioning of the loan and the same is also applicable in the case of the company. But company is preferred over other forms of business as it is registered by Central Government and banks even also provides collateral free loans to the companies.
Foreign Direct Investment (FDI)and Domestic Investment (DI) Allowed-
Not all the businesses are allowed to take FDI or DI. But company is allowed to take FDI and DI and invest it in the business which make it easier for the businesses to grow and expand their business easily by getting the investment.
Startup Benefits-
Startup is the scheme of the government to give incentives and support the new businesses. Government gives the 3 years income tax exemption to the entity registered under the startup. Reduced the government fee for applying trademark, patent, copyright, etc. Government also made a seed fund specifically for the startups to provide collateral free loans and subsidies. But not the every form of business can register itself in the startup. Only Company and LLPare the forms of business which can register and take the benefits of the startups.
Documents
- Pan Card of All Directors and Shareholders
- Aadhar Card of All Directors and Shareholders
- Residential Proof of All Directors and Shareholders anyone of the following (Not older than 2 Month):
a. Bank Statement b. Electricity Bill c. Telephone Bill d. Mobile Bill
a. Passport b. Driving License c. Voter’s Identity Card
- Company Name
- Company Email Id and Phone No
- Business Activity
- Directors Name
- Shareholders Name
All Directors and Shareholders Details:
- Email ID and Mobile Number
- Company Email Id and Phone No
- Nationality
- Qualification
- Current Employment
- Capital Amount
You will get
- Name Reservation
- Certificate of Incorporation
- 6 months free Consultancy
- Permanent Account Number (PAN)
- Tax Collection Account Number (TAN)
- Employer Provident Fund Number (EPF Number)
- ESIC Employer Code Number (ESIC Employer Number)
- Memorandum of Association (MOA)
- Director Identification Number Allotment (DIN) of Directors
- Digital Signature Certificate (DSC) of Directors and Shareholders
- Registration of Address (INC-22)
- Commencement of Business Filing (INC-20A)
- Share Certificates
