Picking the right company structure for your business is as important as any other business-related activity. The right business structure will allow your enterprise to operate efficiently and meet your required business targets. In India, every business must register themselves as part of the mandatory legal compliance. Before we learn how to register a company, let’s try and understand the types of business structures in India.
What are the types of business structures in India?
One Person Company (OPC): Recently introduced in the year 2013, an OPC is the best way to start a company if their exists only one promoter or owner. It enables a sole-proprietor to carry on his work and still be part of the corporate framework.
Limited Liability Partnership (LLP): A separate legal entity, in an LLP the liabilities of partners are only limited only to their agreed contribution.
Private Limited Company (PLC): A company in the eyes of the law is regarded as a separate legal entity from its founders It has shareholders (stakeholders) and directors (company officers). Each individual is regarded as an employee of the company.
Public Limited Company (PLC) : A PLC is a voluntary association of members which is incorporated under company law. It has a separate legal existence and the liability of its members are limited to shares they hold.
Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. The basic premise behind the introduction of the Limited Liability Partnership (LLP) is to provide a form of business entity that is simple to maintain while providing limited liability to the owners. Since, its introduction in 2010, LLPs have been well received with over 1 lakhs registrations so far until September 2014.
LLP is one of best advantage for partnership business form where one partner is not responsible for the misconduct of Other Partner ’s. LLP is a secure form of business and easily manageable in India.LLP gives a dual advantage one is for company liability and another for a partnerships
One person Company Registration
How to Register a Company in India?
An individual or partnership of ownership Business registered under section by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014 Registering a company in India is now a simple 4-step process.
Here is what you’ll need to acquire:
Secretarial Compliance Audit
The Secretarial Audit is an audit to check compliance of various legislations including the Companies Act and other corporate and economic laws applicable to the company. An audit plan is the specific guidelines to be followed when conducting an AUDIT.
It helps to an auditor to obtain sufficient evidence in a Secretarial Audit.Also helps to auditor costs at the reasonable level.
ROC Filing Including XBRL Filing
XBRL stands for eXtensible Business Reporting Language. A Report on Compliance (ROC) is a form that All the Companies and LLPs incorporated are mandatorily required to file various forms, returns, and documents with the Registrar of Companies (ROC) in an electronic mode within the prescribed time along with the prescribed fees.
Mandatory for following:- -
Steps for Creation of XBRL Format on MCA(Ministry of Corporate Affairs):
ANNUAL FILING (INCLUDING XBRL):
It is basically inspection tool for make search reports for a company. A company records described the company history who is the owner of company , what is the background of the owner, how it has mortgaged with various banks over a period of time before reaching the present Bank who has demanded the Search Report. This is an important part of a loan process by Banks to the Companies.
A search report is usually prepared and drafted by Professionals, who after visiting the registrar’s office (Registrar of Companies) and inspecting the property documents, issues the certificate to the Bank stating the facts about the company.
It generally includes:
A trademark is a visual Symbol of a Business .It defines the ownership identity “ Brand name” entity which helps to recognized by trademark Registration. Trademark is also known as a “Logo “. You can also check search availability .
DSC Registration Class 2 & 3
Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. Examples of physical certificates are drivers' licenses, passports or membership cards. Certificates serve as a proof of identity of an individual for a certain purpose; for example, a driver's license identifies someone who can legally drive in a particular country.
A digital certificate can be presented electronically to prove your identity, to access information or services on the Internet or to sign certain documents digitally.