Can We Register Company Contains Word India

Confused nearly which company structure to choose? Endeavor out our tool to decide!

Picking the correct company construction for your business is as important as any other business organisation-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 role of the mandatory legal compliance. Earlier we learn how to register a company, permit's try and empathize the types of business concern structures in India.

Comparative List of Different Types of Business concern Structures in India

Here is a comparative list of the pop business structures in India.

Company type	Ideal for	Tax advantages	Legal compliances
Express Liability Partnership	Service-oriented businesses or businesses that have low investment needs	Benefit on depreciation	Business organisation revenue enhancement returns to be filed ROC returns to be filed
One Person Company	Sole owners looking to limit their liability	Tax vacation for start iii years nether Startup India Higher benefits on depreciation No revenue enhancement on dividend distribution	Business organisation returns to be filed Limited ROC compliance
Private Limited Company	Businesses that take a high turnover	Tax holiday for first 3 years under Startup India Higher benefits on depreciation	Business concern tax returns to be filed ROC returns to be filed An inspect is mandatory
Public Limited Company	Businesses with a loftier turnover	Tax exemptions nether	Business revenue enhancement returns to be filed. Mandatory Audits

What are the types of business organization structures in Bharat?

Let'due south try and sympathise the types of business structures available in India. Hither is a list of some of them:

One Person Company (OPC)

Recently introduced in the year 2013, an OPC is the best way to start a visitor if there exists only one promoter or owner. It enables a sole-proprietor to carry on his work and withal exist part of the corporate framework.

Limited Liability Partnership (LLP)

A separate legal entity, in an LLP the liabilities of partners are but limited but to their agreed contribution. An LLP is established under the Express Liability Act, 2008 with the Registrar of Companies (ROC).

Private Limited Company (PLC)

A PLC in the eyes of the police force is regarded every bit a divide legal entity from its founders Information technology has shareholders (stakeholders) and directors (visitor officers). Each individual is regarded as an employee of the company.

Public Limited Company

A Public Limited Company is a voluntary association of members which is incorporated under company law. Information technology has a divide legal existence and the liability of its members are express to shares they hold.

You can choose what business organisation construction suits your business organisation needs all-time and appropriately annals your business.
Other forms of business structures include Sole proprietorship, Hindu Undivided Family, and Partnership firms. Delight bear in mind, these structures do not come under the catenary of company law.

Why is it important to cull the right business structure?

It is of import to cull your business structure carefully as your Income Tax Returns will depend on it. While registering your enterprise, remember that each business structure has different levels of compliances that need to exist met with. For example, a sole proprietor has to file only an income tax return. Notwithstanding, a company has to file an income revenue enhancement render as well as annual returns with the Registrar of Companies.

A company's books of accounts are to be mandatorily audited every year. Abiding by these legal compliances requires spending money on auditors, accountants and revenue enhancement filing experts. Therefore, it is important to select the right business structure when thinking of company registration. An entrepreneur must take a articulate idea of the kind of legal compliances he/she is willing to bargain with.

While some concern structures are relatively investor-friendly than others, investors will always prefer a recognised and legal business structure. For instance, an investor may hesitate to give money to a sole proprietor. On the other hand, if a good business idea is backed by a recognised legal structure (like LLP, Company, etc) the investors will be more comfortable making an investment.

How to choose a business structure while applying for company registration in India?

Allow'due south take a await at some important questions every entrepreneur must ask himself earlier he/she finally decide upon a business organization structure.

How many owners/partners will your business have?

If yous are a unmarried person who owns the entire initial investment required for the business, a One Person Visitor would be ideal for y'all. On the other hand, if your business has two or more owners and is actively seeking investment from other parties a Express Liability Partnership (LLP) or Private Express Company would suit you best.

Should your initial investment determine your choice of business structure?

If you want to spend less initially, it would exist wise to go in for a Sole Proprietor, or HUF or Partnership firm. But, if you are sure that you will be able to recover the setup and compliance costs, you can opt for a One Person Company, LLP or a Private Limited Visitor

Willingness to bear the entire liability of the business

Business concern structures like sole proprietor, HUF, and partnership firm have unlimited liability. This means, in case of any default in loans, the entire money will exist recovered from the members or partners in profit sharing ratio. The risk to personal assets is high in these cases.

Whereas, Companies and LLPs have a limited liability clause. This ways that the liability of its members is restricted to the amount of contribution fabricated by them or the value of shares each member holds.

Income Revenue enhancement Rates Applicable to businesses

The income taxation rates applicable to a sole proprietorship and a HUF are the normal slab rates. In the case of a sole proprietorship, the business income is clubbed with the individual's other income. Only in the case of other entities like partnership firm and company a tax rate of thirty% is applicable.

Plans of getting coin from investors

As mentioned earlier, it is difficult to get investments when your business structure is unregistered. Entities like LLP and Individual Limited Company are trusted when it comes to investment. Brand certain you choose the right structure, seek the help of an expert and so that you register nether proper guidance.

How to Register a Visitor in India?

Registering a company in Republic of india is now a simple 4-stride process-

Step 1: Digital Signature Certificate (DSC)

As the registration process of the visitor is completely online, Digital signatures are required to file the forms on the MCA portal. DSC is mandatory for all the proposed directors and the subscribers of the Memorandum of Association (MoA) and Articles of Clan (AoA).

DSC tin be obtained from government recognised certifying government. The list of such certified authorities can be accessed here. DSC tin besides be obtained online in just two days from here. Course 3 category of DSC must be obtained by the directors and subscribers of MoA and AoA.

Step 2: Director Identification Number (DIN)

The Manager Identification Number (DIN) is an identification number for a manager and it has to be obtained by anyone who wants to be a director in a company. The DIN of all the proposed directors of the company along with the name and the accost proof are to be provided in the company registration form. DIN can be obtained while filing the SPICe+ form, i.east. company registration grade.

SPICe+ is a web-based visitor registration form, through which DIN can be obtained for a maximum of three directors. If there are more than directors in the visitor and they practice not have a DIN, the company can be incorporated with three directors and information technology has to appoint new directors later later incorporation. The appointed directors can obtain DIN past filing the DIR-3 form since but the proposed directors of an existing company can apply grade DIR-3.

Step 3: Registration on the MCA Portal

To apply for visitor registration, the SPICe+ form is to be filled out and submitted on the MCA portal. To make full out the SPICe+ form and submit documents, the manager of the company has to register on the MCA portal. After registration, the manager tin can log in and will obtain access to the MCA portal services which include filing e-forms and viewing public documents.

The company must as well reserve its name by submitting two proposed names in the Part-A of the SPICe+ form. The reservation of the name is essential because if the visitor proper name is like to the proper name of an existing/registered company, LLP, trademark or it contains words prohibited nether the Companies (Incorporation Rules) 2014, the SPICe+ form volition get rejected.

If the SPICe+ form gets rejected due to non-blessing of the company name, the bidder has to re-file another SPICe+ form for the reservation of a new name by paying the prescribed fee. However, later on the blessing of the proper noun filed in Part-A of the SPICe+ form, information technology will be reserved for a menstruum of 20 days inside which the company must fill Function-B of the SPICe+ course and submit the form online. The applicant must provide the details of the company and directors in the Part-B of the SPICe+ form, attach documents, attach DSC, check the class and submit it.

Step 4: Certificate of Incorporation

In one case, the registration application is filled and submitted forth with the required documents, the Registrar of Companies will examine the application. Upon verification of the application, he will issue the Certificate of Incorporation of the Company.

The Certificate of Incorporation is issued with PAN and TAN as allotted by the Income Taxation Department. An electronic mail with Certificate of Incorporation as an attachment forth with PAN and TAN will likewise exist sent to the bidder.

With this, we take covered the nuts of how to register a company.

Documents required for Visitor Registration

The general documents that are to be submitted for registration of LLP, I Person Visitor, Private Express and Public Limited Company are equally follows:

Documents of the Directors and Shareholders of the company/ Partners of the LLP

Proof of identification of all the company'south directors and shareholders (partners in example of LLP). Any one of the below documents can be submitted as proof of identification:
- Pan card
- Aadhar card
- Driving license
- Passport
Proof of address of all the directors and shareholders (partners in case of LLP). Any 1 of the below documents tin can be submitted every bit accost proof:
- Latest telephone bill (not older than 2 months)
- Latest electricity pecker (not older than ii months)
- Banking concern account argument having address
DIN (DPIN in case of LLP) and DSC of all the directors (partners in case of LLP)

Documents of the Company/LLP

Proof of registered office of the company. The below documents must be submitted as address proof of the company:
- Tenancy/rental understanding between the landlord and visitor/LLP
- Letter of the alphabet or NOC from the landlord of his/her permission to use the function/bounds as the LLP's/company'south registered function.
- Auction deed of the visitor/LLP role bounds in the name of the visitor/LLP
The Memorandum of Clan (MoA) which contains the objects of the company for which the company is going to exist incorporated and the liability of the members of the company.
The Manufactures of the Association (AoA) which lays downwardly the past-laws on which the company will operate.

For more details about documents required for incorporating a One Person Visitor, read our commodity on documents required for one person company registration.

For more than details nearly documents required for incorporating a Private company, read our article on documents required for individual limited visitor registration.

For more details nigh documents required for incorporating a Public company, read our article on documents required for public limited company registration.

For more details nigh documents required for incorporating an LLP, read our commodity on documents required for LLP registration.

How ClearTax Helps in Simplifying Company Registration Process?

With ClearTax, you can establish your company seamlessly in just 10 days (field of study to departmental approvals). Our visitor registration package includes:

Name approval of your company
Obtaining DIN for 2 directors
Filing SPICe+ form
Payment of Stamp Duty for authorized upper-case letter upwardly to Rs.1 lakh except for u.s. of Punjab, Madhya Pradesh and Kerala
Issuance of Incorporation Document along with PAN and TAN
Opening of current business relationship for your company

The company registration from ClearTax is completely online and thus, you can save time and money as y'all do non take to visit our office. Plus, you lot can register your company in simply 4 uncomplicated steps, which are:

Stride 1: P urchase the plan

Purchase our company incorporation plan that suits yous the best. You can even chat with our experts past entering your electronic mail, phone number and clicking on the 'Asking a Callback' push. You can likewise contact united states of america by sending an e-mail with your queries at enquiries@cleartax.in. Our experts volition contact you and clear all your queries.

Pace 2: Upload the documents on our website

Upload the required documents on our website. The uploaded documents are volition be stored safely in our vault and 100% privacy is maintained.

Step three: Document verification by our experts and signature of documents

Our experts will verify the documents uploaded by you. You will demand to attest your signature on the documents.

Stride iv: Our experts will file the grade on the MCA portal

Our experts will file the visitor incorporation form on behalf of you on the MCA portal. After the company incorporation form is filed on the MCA portal, the ROC and the respective departments will verify the forms submitted by our skillful. The verification process takes around 10 days (subject to departmental approval and reverts from the respective departments).

Our experts volition follow upwardly with the respective authorities till you receive the Incorporation Certificate. Later on the verification process is consummate, you will receive the Incorporation Certificate along with PAN and TAN in about 10 days.

Checklist for Visitor Registration

Minimum number of directors/partners, which are equally follows:
- Minimum of one manager for OPC
- Minimum of two directors for PLC
- Minimum of three for Public Express Company
- Minimum of ii partners for LLP
Minimum number of members in a company, which are equally follows:
- Minimum of ane member for OPC
- Minimum of two members for PLC
- Minimum of seven members for Public Limited Visitor
DSC for all designated directors/partners.
DIN for all directors of a company/DPIN for all designated partners of LLP.
Name of the company/LLP, which is not similar to whatever existing name of a company, LLP or trademark.
Authorised capital in instance of an OPC, PLC or Private Limited Company.
Uppercase contribution past the partners of the LLP, in the case of LLP.
MoA and AoA in case of an OPC, PLC or Individual Limited Company.
LLP agreement between the partners, in the case of LLP.
Proof of registered office of the company/LLP.

What is the Cost for Company Registration?

Plan amount for OPC Registration – ₹6999*

Program amount for LLP Registration – ₹6999*

Plan corporeality for PLC Registration – ₹7999*

* Prices shown above may vary. Delight click here to contact our experts for consummate pricing details.

Cost of Public Express Visitor Registration – Rs.10,000 – 30,000*

*The cost varies depending on the authorised capital letter, professional fees, stamp duty and the number of directors and members.

Benefits of Company Registration in Republic of india

A company registration provides many advantages. A licensed company makes information technology genuine and enhances the business' brownie.

Protects confronting personal obligation, and defends confronting other threats and losses.
Builds goodwill and likewise supports more customer attraction
Gives reliable investors bank credits and good investment with ease.
Provides encompass of the responsibleness to protect the company's assets
Bigger commitment to wealth and greater stability
Increases the power to develop and grow large

For a detailed understanding about the advantages of obtaining a company registration, read our article on the Advantages of Company Incorporation.

Name and Capital of the Company

Selection of Visitor Name

The name of the visitor should be proposed in the Form SPICe+ 32 application. Just one preferred name forth with the significance of keeping that name tin be given in the Course SPICe+ 32 awarding.

The type of entity and ane proposed proper noun for the visitor is to be entered for reserving the name of the company. The proposed proper name should non exist similar to the existing name of any company or LLP or Trademark. If the proper name gets rejected, another name can be submitted by applying another Form SPICe+ 32 application and paying the prescribed fees.

An OPC should have the name in the form of "XYC (OPC) Private Express". Similarly, a individual company should have the name in the course of "XYZ Pvt. Ltd." and a public company proper noun in the form of "XYZ Limited".

Capital of the company

There is no requirement of minimum paid-upwards capital to beginning a private limited visitor or a one-person company. Yet, the public limited company must accept a minimum paid-upwards majuscule of Rs.v lakh.

The paid-up capital means the amount of money a visitor has received from shareholders in substitution for shares of the company. It is created when a company sells its shares in the market place straight to investors, usually through an Initial Public Offering (IPO).

The authorised capital of any visitor must be Rs.1 lakh. The authorised uppercase means the maximum amount of share capital that the company is authorised by its Memorandum of Association to effect to its shareholders. The authorised capital must exist mentioned in the MoA.

Compliances to exist followed past the Visitor

Once, the company is registered at that place are certain compliances to be followed by the company annually. The company needs to follow compliances such as the Company is required to appoint its first accountant within 30 days of incorporation In the showtime board meeting. Every company must behave minimum of iv board meetings during the agenda year at stipulated intervals.

It has to maintain and file of profit and loss account, annual return and residue sheet every financial yr together with an accountant'south report before the due appointment with the Registrar of Companies. Every company is required to maintain sure Statutory Registers.

For more details virtually compliances to be followed by the company, read our article on Compliances under the Companies Human action 2013.

The company needs to file sure annual forms with the Registrar of Companies. Details of all forms along with the due appointment of filing these forms are given in our commodity ROC Compliance Calendar.

Summary

Company registration involves a lot of processes. Before registering a company ane should decide on the construction of the company, i.east. if the visitor is to exist registered as an OPC, LLP, PLC or Public Limited Company. Later on deciding on the structure, the company name must be decided and the directors of the company need to obtain DIN and DSC before applying for company registration.

After choosing the visitor name and obtaining DIN and DSC, the company registration form must be filed on the MCA portal. The SPICe+ form, i.east., visitor registration form, must be filled, the required documents must be uploaded and submitted online on the MCA portal along with the prescribed fees. After verification of the SPICe+ course, the ROC will issue the company incorporation certificate. The incorporation document is proof of registration of the company and the visitor volition come up into existence every bit a separate legal entity.

Oft Asked Questions on Company Registration

Where can I register my company?

If you intend to register a new company in India, you lot must submit an awarding to the Ministry of Corporate Affairs (MCA). You make the awarding online at the MCA portal remotely besides. For registration, you lot'll need a Digital Signature Certificate(DSC), and Director Identity Number(DIN), among other things.

What happens if my company name is already taken?

The Ministry of Corporate Affairs (MCA) that maintains a record of registered company names, y'all'll have to access that directory and cheque if your visitor proper name is already registered. If the company proper noun appears in the visitor registration directory, y'all'll take to cull another proper name. If you have already made an application, yous'll accept to make another application for a different proper name that is previously not registered.

Can a foreign national be a director of a company?

Yes, as per the Indian visitor police, a foreign national can exist a director of a visitor registered in India. Notwithstanding, he must fulfil all the criteria laid downwards in the Act. The almost important being allotment of a Director Identification Number (DIN).

Any person, including a foreign national, appointed every bit a Managing director cannot act in the capacity of a Manager unless he/she gives it formally in writing. This can be washed by filing Course DIR-2 within 30 days of beingness appointed as the director.

How many days does it take to register a visitor?

The new changes brought about by the MCA have fabricated it easy to register companies of any nature with the authorities. Provided that you have all your documents in identify, it can take anywhere between 10 – 15 days to register your company formally.

Is a physical presence of a person needed for company registration?

The unabridged process is completed online, so y'all don't have to be present at whatsoever particular place for registration. A scanned copy of the documents must be submitted via mail. At the business address, they receive the company incorporation certificate from the MCA.

How do I cheque if my company is registered or non?

Y'all can check the status of the company registration on the MCA website. To check the status of your visitor, you lot demand to go to the 'MCA Services' tab and select the 'View Company/LLP Master Data' from the drop-down list. Then enter the company's CIN and click 'Submit'. The verbal status of your company will be displayed.

Is the visitor registration process completely online in India?

Yes, the company registration is completely online. A company or an LLP can exist registered simply through the MCA portal. The scanned documents of the visitor/LLP are sent by mail to the MCA and they are processed at the Central Registration Eye (CRC) which acts as a dedicated back office for Company and LLP Registration procedure. Upon completion of registration, the visitor/LLP receives a digitally signed Certificate of Incorporation which can be verified by all the stakeholders on the MCA website.

Does a private limited company take continuous existence?

Yes. Since a private limited company has perpetual succession, it has continuous existence. Perpetual succession means a visitor will continue to exist a legal entity irrespective of the death of the founder/promoter or any manager of the company. Thus, a company volition exist in existence until it is dissolved for the reasons stated in the Companies Act, 2013 or until the Lath and shareholders decide to current of air up or close the visitor.

Is information technology necessary to have a company'south books audited?

Yeah. Every visitor, whether private or public or ane person company, must mandatorily acquit statutory audits of its books. The company must get its book audited every year from the auditor of the company and the inspect study must be submitted by the auditor to the Board before conducting the company AGM.

What are manufactures of association and memorandum of association?

The articles of clan lays down the internal rules and regulations of the visitor. Information technology consists of the engagement of directors, audit and accounts, borrowing powers, winding up process, etc. The memorandum of association contains the five essential details most the company, which are company name, registered office, liability of members, object for which the company is formed and majuscule details. The articles of association are subordinate to the memorandum of clan of a company.

Can the director of a private limited visitor exist a salaried person?

Bacon is not direct provided to a managing director of a private limited visitor. Even so, the Companies Human action, 2013 provides that directors can be given remuneration by the visitor. Remuneration means any money or its equivalent given to the managing director for the services rendered by him. Thus, the salary provided to a director will exist known every bit remuneration provided by the visitor for the services rendered by him/her.

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