Selecting a suitable business structure:
The first step towards company formation in India is to select a right business structure. It is important to choose the business structure carefully while registering your company. Each business structure has different set of compliance that need to be met with. For example, a Sole Proprietorship Firm has to file an income tax return. However, a Private Limited Company has to file an income tax return as well as annual returns with the Registrar of Companies. A company’s books of accounts are to be mandatory audited every year.
Types of Business structures in India:
Private Limited Company:
A Private Limited Company is a company which is privately held for small businesses. The liability of the members of a Private Limited Company is limited to the amount of shares respectively held by them.Shares of Private Limited Company cannot be publicly traded.
Public Limited Company
Public Limited Companies are companies whose shares are traded in stock market or issues fixed deposits. The Public limited company in India is a voluntary association of members which has a separate legal existence and the liability of whose members is limited.
One Person Company:
An OPC is the best way to start a company if there exists only one promoter or owner. It enables a sole-proprietor to carry on his work and still be part of the corporate framework.
Limited Liability partnership
Limited Liability Partnership is a form of separate legal business entity that gives the benefits of limited liability but allows its members the flexibility of organizing their internal structure as a traditional partnership.
Selecting a good name for your company:
Once the right structure has been selected then comes the name selection. Selecting a good company name is very necessary. Select a trading name for the company, which has to be unique at the level of the entire Indian territory.
Following are the simple steps for Company registration in India:
Form Spice plus is to be filed for Company formation in India. Following are the steps to file form Spice Plus.
1. In Part A the name for the company is reserved.
2. Part B offers a other nine services which are as follows:
- Incorporation
- DIN allotment
- Mandatory issue of PAN
- Mandatory issue of TAN
- Mandatory issue of EPFO registration
- Mandatory issue of ESIC registration
- Mandatory issue of Profession Tax registration(Maharashtra)
- Mandatory Opening of Bank Account for the Company and
- Allotment of GSTIN (if so applied for)
Read the complete detailed Procedure on how to register a company in India
Fees for Company Formation charged by the government:
- Digital signature (DSC) – INR 1500-2000 (Depending on the Agency)
- Apply for Director Identification Number (DIN) – INR 1000 for two directors
- Get the name of the company approved through ‘Reserve your Unique Name’ service (RUN) – INR 1000
- Stamp duty would be charged based on the capital of the company and the concerned state.
The Professional fees for Incorporation of company may vary as per the type of the business structure.
Suggested read: cost of registering a startup in india.
If you need any assistance for your Company Formation, feel free to contact us for a free consultation. Experts at Ebizfiling shall be pleased to be at your service. call 9643203209.
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