Here in this blog forum, I am going to confer about the company registration types in India that makes you fall in love with business.

1. Company Registration types in
India that makes to fall in love
with business
By- EARNLOGIC

2. COMPANY REGISTRATION IN INDIA
INDIA- A country with large number of start-up companies mushrooming massively
and stands as third largest number of start- up in the world. This parallelly
creates huge number of business opportunities for start-ups. Unluckily, the same
India stands second in the number of unregistered business too. Registering a
company is relatively easy and a stress free feel that proposes legal protection to
the businessmen. Registered company can be operated effectively and
enthusiastically.

3. LIMITED COMPANY REGISTRATION
Limited company requires a minimum of 3 Directors and has no limit on the
maximum number of members. Limited company registration has more stringent
and extensive compliance requirements when compared to a private limited
company.
It’s better to form a limited company and divide the shares equally.
By setting up a Limited Company, business people could protect assets which
were effectively beyond those declared as assets of the company being formed.

4. PRIVATE LIMITED COMPANY REGISTRATION
It is one of the highly recommended way to start a business in India. Private
limited company offers finite liability for their shareholders with convinced
restrictions placed on the ownership.
The directors are different from the shareholders in private limited company
registration. It can have a minimum of 2 member and maximum of 200 member.

5. A private limited company is broadly classified into 3 types,
 Company limited by shares,
 Company limited by guarantee,
 Un-limited company.

6. Limited liability
refers to limited exposure to financial risk by investors of a company. That is, the
shareholders liability in the company is limited to the capital amount invested in
the company.
For example, if Ram invests Rs.1 LAKH to start a private limited company, his
potential loss cannot be beyond Rs.1 LAKH. He won’t be liable for any liability
beyond this initial amount of 1 lakh.

7. Business continuity
The shareholders may come and go since, the company is unaffected even in
case of death of any shareholders. So that the private company enjoys perpetual
succession.

8. Fund Raising
The banks, venture capital funds and private equity funds lend their resources
easily to a private limited company. Venture capital firm likes to invest here
because they can exchange equity shares.
The banks can use the assets of the company as security for loan purpose. The
registered private limited company can be easily sold to others without affecting
any activities of the company.

9. PUBLIC LIMITED COMPANY REGISTRATION
A Public Limited Company is a voluntary association of members which is
registered under company law. It has an individual legal existence and the
liability of its members are limited to shares they hold.
One can choose what business structure suits their business needs and
accordingly register their business. Public limited company registration is the
legal destination of LLP that has offered shares to the general public and has
limited liability.

10. ONE PERSON COMPANY REGISTRATION
The one person company was introduced under the Companies Act, 2013- Ministry
of Corporate Affairs in order to support the entrepreneurs to create a single
person economic entity. One of the greatest leverage of OPC is that only 2
members are required for company registration and maintenance.
An OPC is a separate legal entity which offers limited liability protection to its
shareholders and also easy to incorporate.

11. Difference between OPCs and Sole
Proprietorships
A sole proprietorship form of business might seem very similar to one-person
companies because they both involve a single person owning the business, but
they’re actually exist some major differences between them.
The main difference between the two is the nature of the liabilities they carry.
Since an OPC is a separate legal entity distinguished from its promoter, it has its
own assets and liabilities.

12. PARTNERSHIP FIRM REGISTRATION
Some of the tools to stay afloat in this partnership ocean are namely small start,
talent & right partner identification, making introduction, getting clear vision,
taking ownership, staying flexible, listening for feed backs and having fun.
Business partners are the persons who help the venture that is struggling to
maintain the leads in a steady manner and thereby giving hands as a partner
which finally results in unexpected growth development and opportunities.

13. LIMITED LIABILITY PARTNERSHIP
LLPs having a capital amount less than 25 lakhs and turnover below 40 lakhs per
year do not require any formal audits It can own or acquire property because it is
recognized as a juristic person and Partners of Limited Liability Partnership
cannot claim the property as theirs. It is an alternative corporate business form
which offers the benefits of limited liability to the partners at low compliance
costs. It also gives way for the partners to organize their internal structure like a
traditional partnership. A limited liability partnership is liable for the full extent
of its assets. Hence, LLP Company is a hybrid between a company and a
partnership.

14. SECTION 8 & SECTION 25 COMPANY
REGISTRATION
It can be entrenched for “boosting commerce, science, sports, research, social
welfare, arts, religion, charity, education, safe- guarding of environment or any
such other object”, provided it “intends to apply their profits, if any, or other
kind of income in boosting its objects” and “intends to prohibit the payment of
any dividend to its members.”.

15. CONCLUSION
“Let your trade plans be impenetrable and dark as night, but when you start your
business, fall like a thunderbolt and shock your competitors!”
Thank you,
Earnlogic Consultants
 Call Us At: +91 9842480987
 Mail Us At: info@earnlogic.in