7 Different Types of Company Registration in India

If you want to start your own company but are confused by the long legal procedures, taxes, and compliance requirements you need to adhere to then don’t worry. Here are some tips to keep in mind to register your company easily and efficiently with little to no hassle.

So, you’ve decided to start your own company or establish your brand but you need to know that starting an organization requires a lot of rules, procedures, and legal formalities that you need to follow. The first thing you need to do is check if you’ve met all legal and financial requirements of the company and then pick the right type of company registration depending on your activities and details. If you are unaware of the different types of company registrations and what each one entails, then here are some tips to keep in mind so that you can better understand each type of company.

The types of company registrations in India

As a rule, any brand, be it big or small, needs to register legally, depending on the type of company registration they fall under. Here are several company registrations to keep in mind to help you make your application process simple.

1. Private limited company

If you want your company to be private then this business registration in India is the ideal choice. The shareholders will take the responsibility of liabilities to safeguard their assets and the total shares are held by each shareholder which they will not be able to transfer or trade publicly.

1. Public limited company

Unlike private companies, the share of a public company can be held by the public. These shares can easily be traded on stock exchange platforms without any hassle. These companies will need to register for ROC certification before taking part in any commercial activities. The documentation for a public limited company is the same as that of a private company.

1. Partnership company

In this type of company, the sole proprietorship and partnership are the number of people that are involved. This will consist of two or more people in which the responsibility of each person is clearly stated. Profits are shared among the partners and they can easily run their business without a license even if they have registered a partnership deed.

1. Limited liability partnership

This business registration in India is fairly new and different from personal assets, they offer the ultimate limited liability protection and the partners in this company depend on the quantity of share capital to pay the liabilities. If you want to register for this company you will need to maintain a minimum capital of at least 1 lakh with one of the partners from this country.

1. One person company

For small businesses and start-ups, this type of company is great and often run by one or a maximum of two people. The owners get liability protection so that they don’t require any partnership making it quite easy to maintain, run and handle. This type of company requires the person to be an Indian citizen and if your business is financed then you may need to register under an OPC registration.

1. Sole proprietorship

A sole proprietorship is a company run by a single person where the owner is responsible for all profits and losses. While this is pretty easy to set up and run and can be established from home, it’s up to the person to put in all the work and maintain their financial assets.

1. Section 8 Company

This company is also known as a non-profit company and the people actively participate in charity work. The main aim of this company is to encourage education, and arts, help the needy, safeguard the environment, help animals, and more. These companies need to have at least two shareholders and directors and don’t require any capital, unlike other companies. However, one of the directors should be an Indian resident and live in a registered Indian address.

Choosing the right kind of company for your needs depends on the type of business you are setting up, the number of employees, your capital, features, and more. Always do your research and look into the different companies before you settle down on the right one.

JSP Associates offers company registration services along with company law and secretary services and makes sure that you follow the right processes, advice, and consultation regarding a range of business concerns.

Courtney lives in the Rocky Mountains with her husband, an exceptionally perfect dog, and an attack cat. theoretical physical chemistry from UC Berkeley. After that, ju