India is a developing country and many companies are emerging day by day in India. But it is worthless to have a business company that is not registered legally under Section 9 of The Companies Act 2013. To register a company online in India it is important to know various types of companies in India.
There are mainly 9 types of companies which are described as below:
Public Limited Company:
It is a Company formed by the joint association of people. There is a minimum of 7 members in the Company and there is no limit for the maximum number of people involved in it. A minimum capital of ₹5 lakhs is invested jointly by its members. The company must form a prospectus of its own. The company can invite the public for its shares subscription and it can transfer its shares freely. Every public Comp is bound to have a secretary.
Private Limited Company:
It is for Ed by 2 or more people with a minimum capital investment of ₹1 lakh. The maximum number of people forming the company could be 200. There is no need for a certificate of commencement to begin work after incorporation by a private company. There is a restriction on the transfer of shares and the public cannot buy a subscription in its shares. A private company can be operational with or without a secretary.
Limited Liability Partnership:
Unlike Companies LLP is a contractual partnership between two parties where one is liable only for his part and is not responsible for the wrongdoing of the other. LLPs provide flexibility in its partnership where partners may change but the LLP continues to have its existence. It is organized and is functionally based on agreement.
One Person Company:
As the name suggests OPC is formed by a single person which means there is only one member as a shareholder of the company while there could be other people as members but they are subscribers to its Memorandum of Association.
It is guided under the Partnership Act, 1932. A partnership is registered and has unlimited liabilities and when in partnership they lose their existence and are considered as the same legal entity. There could be 2 to 20 people in a partnership.
It is the most common form of business done in India. In this, there is one owner and is responsible for all the financial liabilities.
Section 8 Company (NPO):
These are a Non-Profit Organization. They have a charitable objective and do not aim to make a profit. They are functional only after getting a central government license. These companies enjoy special privileges like they do not have any minimum capital for investment. These companies have limited liabilities and can have people as well as firms as its members.
It is a non-banking finance company with a business of borrowing and lending money within its members. Any company registered as a Nidhi Company is a Public Company. It has equity shared as the capital of a minimum of ₹5 lakhs. The net owned funds shall be worth ₹10 lakhs or more. It has a minimum of 200 members of the company. The objective of such a company is to develop a habit of thrift and savings among its members.
10 or more people join for a Production Company. It is a legally recognized company which has farmers or agriculturist as its member who aims to improve their life by ensuring good profits from the agricultural activities. It includes 10 or more members, 2 or more institutions, or both more than 10 members and 2 institutions. They tend to improve their production, harvesting, marketing, selling, or export. The company should have minimum investment capital of ₹ 5 lakhs and should have a minimum of 5 to a maximum of 15 directors.
The process of registration depends upon the type of company. The most commonly registered online companies are Private Limited Company. They carry limited liabilities and have relatively low investments to begin a company which makes it quite attractive to begin a business in India. To register a company online in India one must hire a top-notch lawyer because the process is very tedious. Kanoonvala.com provides you with the best lawyer in your locality to help you to register a company online in India.
Documents required to register a company online in India
For Directors/ Shareholders of the Company
For Registered office
- Passport-sized photograph
- PAN Card
- Government-issued Identity proof (E.g. Aadhaar Card, Voter ID card, Driving Licence, etc.)
- Address Proof such as electricity bills, first and last page of Bank statement, Mobile Bills, etc.
- Ownership Proof of the property
- Rent agreement if the property is not owned.
- No Objection Certificate issued by the landlord for the company
- Director Identification Number (DIN) for all the Directors.
- Digital Signature Certificate (DSC) of Directors.
- Memorandum of Association (MoA) and Article of Association (AoA).
Procedure to register a company online in India: For all Companies/LLPs
Step 1: Get a Digital Signature Certificate (DSC) by all the company directors. List of documents to get DSC includes:
Step 2: Get a Director Identification Number (DIN) by filing form DIR – 3 form with the following enclosure
- Passport size photo.
- E-mail ID.
- Contact number.
- PAN Card of the Director.
- Aadhaar Card of the Director.
Step 3: Getting the name of the Company. The process of getting a name include
- Self-attested Identity proof.
- Address proof.
- Passport size photo.
Step 4: Then certain documents are prepared
- Fill form INC – 1 to the Registrar of Companies (ROC).
- Provide 6 names for your company as per your preference and also mention their significance in your Company.
- The name shall have a suffix depending upon the type of company to be registered After this, you shall receive a finalized name of your company.
Step 5: The above-stated documents shall then be enclosed along with the Form INC – 7, INC – 22 and DIR – 12 and then shall be uploaded to the ROC website.
- A draft of The Memorandum of Association is prepared which shall include the objective of the Company.
- A draft of The Articles of Association is prepared which includes information regarding the by-laws the company follows.
- A declaration abiding by the format of form INC-8 is then drafted by a professional lawyer.
- All the Subscribers have to sign an Affidavit that shall define their legal responsibility to act as subscribers of the Company.
- Consent from the Directors is then taken to act as the director of the company in the Form DIR-2 and their details are submitted in the Form DIR-8.
All the information provided is thoroughly checked and verified, after clearance, the ROC will issue a Certificate of Incorporation and then the company shall be registered and begin its business.
Why should you opt for Kanoonvala.com?
Select your company type and register a company online in India with Kanoonvala. To know more about the Company Registration Procedure, and required documents visit us at Kanoonvala.com as we have roots deep into all the parts of the country. We help you to get linked with the top-notch lawyers to help you register a company online in India. We provide you with the best and affordable legal services as we have No Hidden Costs. End-to-end Legal Solution. Dedicated Relationship Manager to help you with all your issues regarding your Company Registration.
Does DSC play an important role in company formation or company registration?
The digital Signature Certificate is important as it is needed for filling the e-forms of the company that is sent electronically to the Ministry of Corporate Affairs.
What criteria should one fulfill to become the Company Director?
Any Indian citizen above 18 years of age is eligible to become the director of a company.
How to choose a company name?
The company name should be simple and catchy. It should follow the company name guidelines of The Companies Act, 2013. It is better to check on Google, MCA Guidelines, and Trade Mark site for the availability of the name.
What is the role of the director?
The director is assigned to implement the ideology and principles with which the foundation stone the company was established. It is the work of the director to determine and implement policies and new ideas. The director should be a good decision-maker.