A company is an association of persons created by law as a legal person so that the company can work like a natural person. It can do business, it can lend or accept loan or deposits, it can buy or sell properties in its name and it can sue or be sued in its name. Company about which, we are talking are companies registered under provisions of Company Act, 2013, and not partnerships or LLPs.
Start-ups and growing business choose to register a company in India because it allows them funding to be raised easily, limits the liabilities and enables them to offer employee stock options to attract top talents. The process for registration of a company is governed as per provisions of Companies act 2013 and the Companies incorporation rules, 2014.
Types of Companies that can be registered under provision of Company Act, 2013 are:
- Private Limited Companies,
- Public Limited Companies,
- Producer Companies (Farmer Companies)
- Nidhi Companies
- Section 8 Companies also known as NPO company
- One person Company (One person private limited company)
- Private Limited Companies:
Section 2(68) of Companies Act, 2013 defines private companies. According to that, private companies are those companies whose articles of association restrict the transferability of shares and prevent the public at large from subscribing to them. - Public Limited Companies: Public companies are companies which are not Private Companies, means this company can allow its members to buy or sell or transfer their shares freely and raise funds from public.
- Producer Companies (Farmer Companies):
Producer companies also known as Farmers companies are public companies, which are started by farmers or producers of agricultural produce. It means, only farmers and producers of agricultural produces can start producer company and can be member of Producer company. - Nidhi Companies :
Nidhi Company is a company registered under the Companies Act, 2013, which has a sole objective of cultivating the habit of thrift and savings amongst its members. Nidhi companies are allowed to take deposit from its members and lend to its members only. - Section 8 Companies also known as NPO company:
Section 8 companies are registered to work for upliftment of society and for social welfare, therefore they are also classified as NGO. Section 8 company can be Private Section 8 company having two members or public section 8 companies having minimum 7 members. Public Section 8 company is known as NGO and it can only take donations or fundings. - One person Company (One person private limited company):
One Person companies are private limited company having only one shareholder and director. There can be maximum one shareholder in OPC company but directors can be more than 1 also. Thus, entire ownership is in hand of one person. One person at time of registration of One person company has to appoint his or her nominee so that if in future at any point of time, he dies, nominee would take over ownership of company.
DOCUMENTS REQUIRED FOR COMPANY REGISTRATION:
For shareholder’s;
- Scanned copy of Pan card
- Scanned copy voter’s id or Aadhaar Card or Electricity Bill
- Scanned copy of latest bank statement/electricity bill/telephone bill
- Scanned passport sized photograph
- Specimen signature
For registrar office;
- Electricity bill/gas bill/ telephone bill
- NOC (no- objection certificate from the owner) {If office is on rent}
Company Registration Process:
Step 1: Application for Digital signatures is filed
Step 2: Application for Name reservation is filed.
Step 3: Application for Registration of company is filed.
Step 4: Incorporation certificate and others documents are received from Department
Step 5: Company registration process is completed and entire set of documents are handed over to customer.
* For Name availability under RUN Web service, there is no prior requirement to obtain DSC and DIN . It can be done with account login on MCA portal.