In India, it is important for every business to register themselves before establishing and be a part of the mandatory legal compliance. Your business registration will depend on what type of business you are planning to do. Determining the right company structure for a business is just as important as other business functions. Selecting the proper structure for your business will help your company to manage your skills efficiently and gain other required business targets. One should know all the business structures available for them before starting his or her own business. Let’s try to understand the business structure in the age of digital India and see how Consult Corporates can help you to register your business in India.
Types of Businesses in India
Here are some business structures available in India to register:
- Sole Proprietorship: If you are the one and only owner of your business then the sole proprietorship form is ideal for your business registration. In this form, you do not need any government registration, no paperwork from any government body, and you do not have to face any complicated activity or obligations. You only need to pay an income tax return on your income at the end of the financial year. Before applying for registration, you need to have your Aadhar card, PAN, bank account and registered office address and you also need to apply for a trade license from the local municipality or panchayat area.
- One-person company (OPC): The Government of India introduced this business structure in 2013. You need only one director for OPC registration. For OPC registration you need to obtain a digital signature certificate (DSC), director identification number (DIN), application for name approval, memorandum of association, article of association, registered office address proof, affidavit and consent of director, file all documents with the ministry of corporate affairs, and a declaration letter that everything has been done. Once these formalities have been fulfilled, you will receive your registration certificate and you can open your bank current account in the name of your business. At Consult Corporates, we are constantly helping our clients with their OPC registration, yearly compliance, as well as GST requirements and compliance.
- Partnership Firm: If you decide to include a partner in your business, the simplest way is to create a partnership firm and an agreement paper between the partners, where the responsibility of the partners, the share of the profits and other rules and regulations will be mentioned clearly. Creating a partnership firm is easy and convenient and there is no need to submit an annual return to MCA. Statutory audit is not mandatory for partnership firm but partners need to be very careful about profit sharing.
- Limited Liability Partnership: This business structure is flexible and it differs personal liabilities from business liabilities. Every owner will have their own tax liabilities shared. For limited liabilities partnership registration, you need to apply for designated partner identification number by an online form fill up, obtain your digital signature certificate (DSC) and register it in the MCA portal, get the approval for LLP name from the MCA, and after name approval, fill up a few forms to incorporate your business as an LLP. At Consult Corporates, we provide affordable LLP registration services and we will also ensure that you do not miss any of the yearly compliance or tax-related obligations for your LLP.
- Private Limited Company: A private limited company can have from 2 to 20 members. A private limited company can not raise funds from the public and this is why it cannot issue shares publicly. For registering a private limited company, you have to obtain a director identification number (DIN), a name registration application, need to draft Memorandum of Association and Articles of Association, after that file all applications using MCA website and get the PAN and TAN applications for tax filing. At Consult Corporates, we are dedicated to help you with your private limited company registration and provide affordable pricing for your business registration.
- Public Limited Company: A Public Limited Company has a distinct legal existence from other business structures and it can raise funds from the public. Issue of shares, legal compliances are much stricter for such companies and you definitely need the help of trained professionals for your business registration.
First Step – Selecting a Company Name
It’s not so easy to find a proper company name for your business. It will take time to find a proper company name that is relevant to your business and will reflect the mission of your business. The name must be strong and you must choose a name that is easy to remember and pronounce. Check, if the domain name is available or not with the MCA portal. At Consult Corporates, we can help you with identifying names that will be accepted by the MCA and get your name approved. Contact us for affordable name approval services.
Choose the Right Business Structure
Choosing the right business structure is very important as your income tax return will depend on it. When registering a business, it is important to keep in mind that different businesses have different agreements that require expert drafting. Except for sole proprietors, the rest of the business registration structures have to file annual returns with income tax returns and you need help from CA and CS in the business compliance.
How to Register a Company
At present, business registration in India has become convenient and you can complete your business registration only through simple 4 steps:
- You have to obtain a digital signature certificate (DSC)
- Obtain a director identification number (DIN)
- Fill up e-form on the MCA portal
- Obtain the certificate of incorporation
However, in reality, there are complications where you need help from trained professionals who can help you to register your business in India. If you face any problem while registering or need any professional help, let us guide you. Consult Corporates will help you to register your business in every possible way within a very short time at affordable prices. Contact us today at +91 9836155797 or email us to firstname.lastname@example.org.