Types of Company Registration in India - II
Company registration is an important and crucial step in realizing your dream of becoming a successful entrepreneur. Company Registration is a primary process that all business owners need to accomplish. The Companies Act 2013 lists different types of companies that can be incorporated in India.
Take a look at these different types of companies types in India, which you can register :
For type 1, 2, 3: Click here: https://www.aimsolute.com/post/types-of-company-registration-in-india-i
4. One Person Company :
One Person Company (OPC) is the latest entrant in the different types of companies registered in India. It was introduced under the Companies Act 2013, in favor of entrepreneurs who possess the capability to run a business singlehandedly, yet successfully. The minimum paid-up capital of shares in an OPC is INR 1 Lakh.
This new addition to the different types of companies in India was a pleasant change as it allowed a single person to take charge of the company affairs while other types of companies required a minimum of two individuals to function as members of any company. It is highly beneficial for owners of small businesses who do not need partners. Much in a similar way, OPC is regarded as a distinct legal entity from its members. The shareholders here have limited liability protection and this form of company is quite easy to incorporate.
5. Sole Proprietorship :
Sole Proprietorship is a type of company registration wherein a single person manages the entire business operation. The business and the owner are treated as one identity and he/she solely bears the profit or loss made thereafter.
The company in Proprietorship is registered in the name of a single individual only. All accounting is done under the owner’s account for taxation purposes. Proprietors here have to bear unlimited business liability. 6. Limited Liability Partnership :
A Limited Liability Structured Company (LLP) requires a minimum of two partners. It is also a newly introduced corporate business structure that conjoins two terms ‘company’ and ‘Partnership Firm’. An LLP is a separate legal entity from the partnership and personal and business assets are distinguished. The liability of the partners is determined by the number of their share capital. When compared to Sole Proprietorship and Partnership, an LLP shows better credibility among its investors. This is attributed to the appropriate maintenance of incorporation records, financial records and tax records.
7. Section 8 Company :
This type of company registration is as a Non-Profit Organization (NPO). The objective of an NPO is primarily to promote arts, commerce and various forms of social welfare in the form of education, charity, religion and protection of the environment, to name few. Any profits, if generated, here are used in achieving its aforesaid objective. The dividends are also not paid to its members. In India, no business registration can be treated as a company if it is not registered with the registrar of companies under the Companies Act 2013. It is only after registration that a company becomes a separate legal entity from its members.