How to start a company in India, Before discussion how to start company lets have a look on types of company
Types of company
- Proprietorship company or you can call sole proprietorship
- General Partnership
- Private limited company
- Public limited company
# 1) How to start a Proprietorship company in India
To start sole proprietorship in city you should have shop act license ,if you want to start sole proprietorship company in India so you can get bank account in your firm name
To start a sole proprietorship in the village you should also have NOC from gram panchayath ” you are starting a company in village area” you can submit this NOC to the bank to get a bank account in your firm name
Later, GST registration required to issue purchase and sales bill
To start a bank account you need 1) Shop act or gram panchayath NOC 2) pan card 3) GST registration certificate 4) At last, Adhar card this four documents mostly ask by bank to start current account of your firm
Disadvantage of proprietorship :-
- Owners are fully liable and
- Also, Self-employment taxes apply to sole proprietorships.
- Also, Business continuity ends with the death or departure of the owner.
- At last, Raising capital is difficult.
Advantages of a Sole Proprietorship
- A sole proprietor has complete control and decision-making power over the business.
- Also, Sale or transfer can take place at the discretion of the sole proprietor.
- Also, No corporate tax payments.
- At last, Minimum legal costs to forming a sole proprietorship.
# 2) How to start a General Partnership firm
A partnership firm is where 20 partners min. are present. The Partner must be an Indian citizen and also a Resident of India. Additionally, Non-Resident Indians and Persons of Indian Origin can only invest in a Proprietorship with prior approval of the Government of India.
to start a partnership in India, documents required
For example, PAN Card for the Partners along with identity and address proof is required. It is also recommended to draft a Partnership deed and have it signed by all the partners in the firm. Partnership firms are also registered by the Registrar of Firms, under the Indian Partnership Act, 1932
Advantages of partnership firm
Firstly, Only a registered Partnership firm can file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act. Also, only a Registered Partnership firm can claim a set off (i.e. mutual adjustment of debts owned by the disputant parties to one another) or other proceedings in a dispute with a third party. Hence, we advice partners to register soon.
Disadvantages of partnership firm
In time decision making , lac of mutual understanding between partners
# 3) How to start a Private limited company In India
A corporate entity that is registered extensively in India, Private Limited Company is also most popular. It is also governed by the MCA (Ministry of Corporate Affairs) and regulated by the Companies Act, 2013 and the Companies Incorporation Rules, 2014.
Documents required to start a Private limited company in India
Documents are of ulmost importance in the process. In addition to the identity proof, the directors must submit residence proof that is less than three months old.
Companies registered in India must mandatorily maintain a registered office. Meanwhile, In the case of leased property, the copy of the lease deed for the registered office premises along with a NOC from the landlord and an EB bill/property tax receipt/water bill copy of the registered office property.
# 4) How to start a Public limited company
A Public Limited Company is defined under Section 2(71) of the Companies Act, 2013 as:
|Minimum Paid-up Share Capital||INR 5 lakhs to 10 lakhs|
|Minimum number of Directors||3|
|Maximum number of Directors||50|
|Minimum number of Shareholders||7|
|Maximum number of Shareholders||No Limit|
Documents Required for Registration of Public limited company
- Passport-sized photographs of all the Directors
- Copies of the identity documents of all the Directors- Aadhar Card, Voter Card, PAN card
- DSC (Digital Signature Certificate) of all the Directors
- DIN (Director Identification Number) of all the Directors
- In case the office is in a rented property – the rent agreement
- In case the office is an owned place – the property ownership documents
- The water bill and also the electricity bill of the business place
- No Objection Certificate by the Landlord
- Additionally, the Memorandum of Association
- At last, Articles of Association
Other extra registration you should apply as per your work
- REGISTRATIONS as follow
- Digital Signature:-digital signature for various reasons like filing GST return, filing an income tax return, etc. For security reasons, the Digital Signature Certificate is stored on a hardware device, a Cryptographic USB Token known as ePass. The USB token can only hold your Digital Signature Certificate. The USB token is also protected and incapable of storing any other documents or information.
- Udyog Aadhaar:- Udyog Aadhaar or MSME registration is a certificate provided to micro, small, medium-sized businesses in India under the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED). you can apply for this certificate online
- Import Export Code:- if you want to start an import or export transaction or business you need this certificate
- FSSAI Registration:- if you want to start a food processing or food manufacturing business you need this license
- Trade License:- to secure your brand you need a trademark certificate I have tried to explain maximum points if you want more information which is not covered in my article please comment downside of page I will personally answer you
- Cheers, Y D Malidwale