What is the process of a Company Registration?

Company Registration is very important for proving your company to be a genuine entity. By registering your company, you can get many benefits from the government. And it can also help you in the event of any legal case. But before registering your company it is important to choose the right structure of your company for registration purposes. There are different types of business structures within which you can register your company. So, it is better to learn about them before proceeding.

How many types of business structures are there in India?

There are mainly four types of business structures in India. All these structures have their own pros and cons, so it is very important to choose the right one for your company. The business structures within which you can do Company Registration are as follows:

1. Limited Liability Partnership

In a limited liability partnership, each partner’s liability is limited to their agreed terms.

2. One Person Company

If there is a sole owner or a promoter of a company then going for the one-person company registration is the best thing for you.

3. Private Limited Company

A private limited company has directors and shareholders and it is a legal entity separate from that of its founders. The individuals working in this company are regarded as an employee of the company.

4. Public Limited Company

A public limited company can be called as an association of different members. These types of companies have shares that can be bought by general public. The liability of any members associated with the company is limited to the number of shares that they hold. 

As per your company’s characteristics, you can choose to register your company in any of these structures.

Why choosing a business structure is important?

The biggest benefit of choosing the right business structure for your company is tax benefits. There are also many compliances that must be fulfilled as per the structure you have chosen. For example, in one-person company you only had to file your income tax returns. But in other structures you must file an income tax return of that company along with annual returns.

Choosing the right business structure for your company can also help in getting you an investor. Investors generally prefer LLP and other company structures than sole-proprietorship. Therefore, it is always good to decide the structure of your company before Company Registration.

How to choose the right structure for your company?

For choosing the right business structure for your company it is important to understand things like how many partners does it have and what was the initial investment? The questions like these will help you in deciding the best possible business structure that you can choose for registering your company.

If you yourself are the sole owner of everything from planning to investment then going for a one-person company is the best thing for you. On the other hand, if there are two or more partners then going for an LLP or a private company will be the best option for you.

Things required for registering

You can register your company by following the steps given below:

• A certificate of a digital signature.
• A DIN or director identification number.
• New user registration on the portal of the Ministry of Corporate Affairs or MCA.
• And, certificate of incorporation.

If you are thinking about Company Registration then first decide the structure of your company within which you want to register. After deciding it there are some formalities which you must complete. And when all your formalities are completed it will only take a few days to register your company.