Incorporation Services

It is the most advantageous form of business organization by its characteristics. A private limited company is distinct from its Shareholders and/or directors having continuous succession and limited financial obligation. It should have a minimum of 2 directors and 2 Shareholders. The word ‘Private’ denotes that the general public cannot be invited to buy its Shares and ‘Limited’ denotes that the Liability of the Shareholders and directors is restricted.

Requirements:

1. Director:

• Minimum no. of directors required are 2 out of which 1 shall be Indian Resident.
• Any person can be a director of the company including family members
• Director Identification No. (DIN) and Digital Signature Certificate (DSC) are required to be a director of the company
• Directors are the managers and they are responsible for day to day functioning of the company.

2. Shareholder:

• Minimum no of shareholders required are 2
• Director and Shareholders can be the same
• Shareholders are the owners of the company

3. Capital:

• There are 2 types of capital i.e. Authorize Capital (It is the capital up to which company is authorize to raise from the member and it can be increase as and when required.), Paid Up Capital (It is the capital which is paid up by the members of the company and it can be increase as and when required.)
• There is no such requirement for minimum capital, hence the company can be formed with the capital starting from INR 1

4. Registered Office: 

• Any place can be made as the registered office of the company even the residential place can be used as the registered office of the company.​​​​​​

5. Registering Authority

• Ministry of Corporate Affairs.

Steps to Formation of Private Limited Company

1. Search for Name availability
2. Obtain Directors Identification Number (DIN ) and Digital Signature (DSC)
3. File an application for Name approvals and get it approved.
4. Drafting of Memorandum of Associations and Articles of Association.
5. Filling the forms with ROC along with stamp duty and fees.
6. Getting the Incorporation Certificate.

A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore exhibits elements of partnerships and corporations. In an LLP, each partner is not responsible or liable for another partner’s misconduct or negligence.

1. Designated Partner (DP):

• Minimum no. of DP required are 2 out of which 1 shall be Indian Resident.
• Any person can be a DP of the LLP including family members.
• Director Identification No. (DIN) and Digital Signature Certificate (DSC) are required to be a DP of the LLP.
• DP are the managers and they are responsible for day to day functioning of the LLP.
• DP can also contribute to capital of the LLP.

2. Partner:

• There is no such minimum requirement for a Partner.
• DP and Partners can be the same.
• Partners only contribute to capital of the LLP and does not take active participation in the day to day functioning of LLP, hence they are not responsible or liable for any activities of the LLP.

3. Capital Contribution:

• There is no such requirement for minimum capital contribution, hence the LLP can be formed with the capital contribution starting from INR 1.

4. Registered Office:

• Any place can be made as the registered office of the LLP even the residential place can be used as the registered office of the LLP.

5. Registering Authority:

• Ministry of Corporate Affairs

Steps to Formation of Limited Limited Company

1. Search for Name availability
2. Obtain Directors Identification Number (DIN ) and Digital Signature (DSC)
3. File an application for Name approvals and get it approved.
4. Drafting of Memorandum of Associations and Articles of Association.
5. Filling the forms with ROC along with stamp duty and fees.
6. Getting the Incorporation Certificate.

An One Person Company (OPC) is a hybrid structure, wherein it combines most of the benefits of a sole proprietorship and a company form of business. It has only one person as a member who will act in the capacity of a director as well as a shareholder.

1. Director:

• Minimum no. of directors required is 1.
• Any natural person can be a director of the company.
• Director Identification No. (DIN) and Digital Signature Certificate (DSC) are required to be a director of the company
• Directors are the managers and they are responsible for day to day functioning of the OPC.

2. Shareholder:

• Minimum no of shareholders required is 1 and shall be Indian Resident.
• Director and Shareholders can be the same.
• Shareholder is the owners of the company.
• The shareholder has to appoint nominee in case of his/her death the nominee takes over the place of the shareholder.

3. Capital:

• There are 2 types of capital i.e. Authorize Capital (It is the capital up to which OPC is authorize to raise from the member and it can be increase as and when required.), Paid Up Capital (It is the capital which is paid up by the members of the company and it can be increase as and when required.)
• There is no such requirement for minimum capital, hence the company can be formed with the capital starting from INR 1.

4. Registered Office:

• Any place can be made as the registered office of the OPC even the residential place can be used as the registered office of the OPC.

5. Registering Authority:

• Ministry of Corporate Affairs.

Steps to Formation of One Person Company (OPC)

1. Search for Name availability
2. Obtain Directors Identification Number (DIN ) and Digital Signature (DSC)
3. File an application for Name approvals and get it approved.
4. Drafting of Memorandum of Associations and Articles of Association.
5. Filling the forms with ROC along with stamp duty and fees.
6. Getting the Incorporation Certificate.

A public limited company is a form of business organization that operates as a separate legal entity from its owners. It is formed and owned by shareholders. Shares of a public limited company are listed and traded at a stock exchange market freely. Shareholders of a public limited company are limited to potentially lose only the amount they have paid for the shares they own.

1. Director:

• Minimum no. of directors required are 3 out of which 1 shall be Indian Resident.
• Directors are the managers and they are responsible for day to day functioning of the Company.
• Director Identification No. (DIN) and Digital Signature Certificate (DSC) are required to be a director of the company
• Any person can be a director of the company including family members.

2. ​Shareholder:​​​​​​

• Minimum no of shareholders required are 7.
• Shareholders are the owners of the company
• Director and Shareholders can be the same.

3. Capital:

• There are 2 types of capital i.e. Authorize Capital (It is the capital up to which company is authorize to raise from the member and it can be increase as and when required.), Paid Up Capital (It is the capital which is paid up by the members of the company and it can be increase as and when required.)
• There is no such requirement for minimum capital, hence the company can be formed with the capital starting from INR 1.

4. Registered Office:

• Any place can be made as the registered office of the company even the residential place can be used as the registered office of the company.

5. Registering Authority:

• Ministry of Corporate Affairs

Steps to Formation of Public Limited Company  

1. Search for Name availability
2. Obtain Directors Identification Number (DIN ) and Digital Signature (DSC)
3. File an application for Name approvals and get it approved.
4. Drafting of Memorandum of Associations and Articles of Association.
5. Filling the forms with ROC along with stamp duty and fees.
6. Getting the Incorporation Certificate.
7. Getting the certificate of commencement of business.

Partnership Firms in India are governed by the Indian Partnership Act, 1932. As per Section 4 of the Indian Partnership Act:- “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”.

1. Partner:

• Minimum 2 Partners are required for starting a Partnership Firm.
• Partners contribute to capital of the firm and take active participation in the day to day functioning of the firm, hence they are responsible or liable for any activities of the Partnership Firm.

2. Registered Office:

• Any place can be made as the registered office of the Partnership Firm even the residential place can be used as the registered office of the Partnership Firm.

3. Registering Authority:

• Registrar of Firms.

Steps to Formation of Partnership Firms

1. Preparation of Affidavits
2. Execution of Partnership deed or agreement
3. Application to registration of Partnership firm
4. Submission of KYC of business owners and business documents.
5. Getting the business registration certificate

The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.

Sole Proprietor

• The most common and simplest form of business is a sole proprietorship.
• An individual proprietor owns and manages the business and is responsible for all transactions.
• The owner is also responsible for all debts and liabilities.
• The owner pays taxes on income from the business as part of personal income tax payments.

Registered Office:

• Any place can be made as the registered office of the sole proprietor even the residential place can be used as the registered office of the sole proprietor.

1. Steps to Formation of Proprietorships
2. Apply for PAN and Aadhaar of the business owner.
3. Chose business name or Trade name
4. Apply for GST certificate or any other government business licence
5. Open Current account in the bank with Trade name
6. Register with Municipal Corporation or competent authority.