The first and most important requirement of start-up registration is to choose a suitable business structure and register the company name in India. The choice of the right business structure affects many factors, from your business name, to your responsibility to the business, to how you file your taxes and legal arrears. The operational and financial success of the company also depends on the business structure, accordingly the online company formation can be followed in the Indian process. All other companies merged under the Government-approved Companies Act fall under this head. These companies come into existence only after registering themselves under the Act and obtaining a certificate of incorporation by the Registrar of Companies.
Types of companies based on the Company Formation
The company incorporation can be classified into three types based on whether they have been established based on special order, special act, or registered under any normal norms. They are royal companies, statuary companies and the incorporated companies.
Royal charted companies
The royal charted companies are the companies created by the royal charter. This means they have been given power by monarch or by special order by a queen or a king. Some of the examples for the royal charted are the India Company, BBC, bank of England.
Statuary companies are the type of company incorporation, by means of special act passed by the centre or the state legislative. They are mostly invested with the compulsory powers, and they are responsible to carry out some special business. Some of the examples are reserve Bank of India, Life Insurance Corporation.
All other companies merged under the Government-approved Companies Act fall under this head. Company registration comes into existence only after registering themselves under the Act and obtaining a certificate of incorporation by the Registrar of Companies. Example of Google India Pvt Ltd mergers.
Types of companies based on the number of members
Based on the number of members the companies are of 3 types. They are: Private limited company, public limited company and one person company.
Public limited company
The legal existence of a public limited company is different from that of its members (shareholders) and the liability of its members is also limited. Its existence is not affected by the retirement or death of its shareholders. The formation of a public limited company requires a minimum of 7 members, but there is no maximum limit on this. The company raises its capital by selling its shares to shareholders. The shareholders of a company do not have the right to participate in the day-to-day management of the company, thereby separating ownership from management. All major decisions of the company are made by the board of directors.
Private limited Company Formation
Private Limited (Private Limited) Companies have more than 2 and less than 50 members and their liability is limited or unlimited depending on the type of company. Unlike public limited companies, the transfer of shares here is restricted to its members and the general public cannot subscribe to its shares and debentures. Private limited companies are exempt from many of the rules and regulations that apply to private limited companies, for example, the requirement to file a prospectus with the registrar, hold a statutory general meeting, or conduct annual reports. Also, it may start operations after obtaining the certificate of merger, but the public limited company will need an initial certification. This is a great choice if you want the benefits of limited liability and want more control over your business and maintain its privacy. It is the most popular company to register start-ups.
One Person Company
One Person Company (OPC) as a Company Type was introduced in India under the Companies Act, 2013. This is equivalent to sole proprietorship, but the owner has a limited liability and his personal assets are not at risk if the losses have to be recouped or the company liquidated.
Registration process in Bangalore?
Firstly apply for the DIN (Director Identification Number). The DIN is unique 8 digit number. The requirements for the Din include full name, father’s name, DOB, address proof. The application is available in online also as DIN-1 form. Then the second step is to apply for the DSC. All the authenticity of the documents, are provided in DIN 1 form. The DSC requires address proof, PAN card, and identity proof with the photo. Any way the DSC should be provided by the registered agencies which are appointed by the CCA (Controller of Certification Agencies).
Then the next step is to register the new user. It is the most important step to get registered by the MCA portal. The applicant needs to create the user account. And the next step is to file for the charter documents. Documents like MOA and AOA are important for the incorporation of the companies. The next step is to apply for the company name. The name of the proposed company should be specific and descriptive of the products and services that the business offers. This gives them a unique company from their competitors in the same field.
Company Formation Certificate Generation
The Ministry of Corporate Affairs (MCA) has recently launched the RUN (Reserve Unique Name) web service to incorporate an organization. However, this service can only be used once. Due to similarity in names or non-compliance with company’s incorporation rules, once rejected, the RUN will not be reused.
Carefully fill out and submit Form-1 to include the company formation name on the MCA website for the company registration. It is really very important to provide at least four alternative names for your company. The name of the proposed company must also comply with all regulations listed under the Companies Act, 1950. Following this, you must select one of them and file Form-18 and Form-32 for the address of the organization and appointment of Directors, Secretary and Manager respectively. Nowadays through an online portal, all the documents are combines and when the subscribed fees is paid, then the registration is done.