Types of Companies in India and the Process for Company Registration
Company registration in India starts by choosing the right business entity. These are the types of companies in India:
Sole Proprietorship: A single person runs sole proprietorship. The company is the ownership of the person running it, and the owner will be liable for the losses and debts but has the rights for all the profit.
Partnership: It is similar to a sole proprietorship, but multiple partners run the firm. A partnership company doesn’t stand as a separate legal entity. The rights for the profit and important company decisions depend on a person’s contribution and the partnership agreement.
Private Limited Company: A private limited company is a proper corporate entity. It stands as a separate legal entity. There are shares in the company. An Indian Private Limited Company should have at least two directors, one of which should be primarily resident in India.
One-Person Company: A one-person company is a ‘mix’ between a sole proprietorship and a private limited firm. The company has a single share bought by the owner.
Public Limited Company: In a public limited company, the public can buy the shares. This means the company is listed on the stock market.
Branch Company: A branch company isn’t a legal entity on its own, but operates as a subsidiary for an existing firm. Both local and international firms can form a branch company in India.
The Process for Company Registration in India
These are the steps to register a company in India:
Step 1: Choose the Company Type.
Step 2: Gain the Digital Signature Certificate and the Director Identification Number (DIN).
Step 3: Come up with at around six names for your company, among which one will be finalized.
Step 4: Fill and submit the SPICe form. It consists of essential information like the Memorandum and Articles of Association, and registered address.
Step 5: Fill and Submit the PAN and TAN Applications.
Step 6: Talk to a lawyer regarding the licenses you will need.
Step 7: Register for the corporate taxes and GST.
Which Company Can Foreigners Open in India?
Foreigners can either go for a private or a public limited company. They can also open a company branch in India.
How to Register a Company in India?
The best way to register a company would be to work with a CSP providing India Company Incorporation Services. You tell them the type of the company you want, learn more about the process for company registration and they will incorporate the firm for you. 3E Accounting India provides one of the best registration services in the country.