Company Registration is a set-up of a new business entity. The corporation may be a start-up, a company, a non-profit organization, a micro, small, or a medium-scale business.
In India, the Ministry of Corporate Affairs manages corporate affairs through the Companies Act, 1956, 2013, and other linked Acts, Rules, and Bills. The Ministry is involved centrally with the administration of the Companies Act 2013. It is engaged in the Companies Act 1956 and the Limited Liability Partnership Act, 2008.
Advantages under-registration of the company-
- Status under the law: With registration, a company comes assumes legal status, where it can process its business with proper authentication and security order. It can sue any defaulter to it and can be sued for any offense.
- Long life of the business: A business can enjoy a long life in its operations on account of registration as there will be no pressure to end up its business except some legal orders which may be issued.
- Equity transfer becomes easy: A company can allow transfer in its securities held by the shareholders individually.
- Debt eases more: A registered company gets access to a large number of funds from various financial institutions, banks, etc.
- Complete hold on the property: a registered company secures a total dominance upon its assets except for the shareholders which are limited to their shares.
Company registration or incorporation gives various Tax benefits, creates legal identity, enhances brand image, secures the assets, dual relationship protects the brand, gives easy transfer of shares, and gives investment for the business.
In simple terms, company registration assures multiple benefits for its various parties concerned; giving business events a way to go beyond threats ensued by several disruptions such as shareholders defaults, third party threats, legal forces, business cycles, etc.
Eligibility criteria for the company registration-
- The company should have a minimum of two people who must act as the directors or shareholders of the company, and another as the director of the company who needs to be a resident of India.
- The name of the company should be unique.
- No minimum capital requirement is to be kept in the company.
Types of company registration-
The three different types of company registration are
- Limited Liability Partnership- It is a form of a partnership business that has a limited liability provision among its partners. In this, partners pay the liabilities of the firm only to the extent of their share.
- Private Limited Company- It is a group of persons who run a legal business. It limits the number of shareholders up to 200 only. It also keeps the liability of its shareholders limited to their share.
- One Person Company- It is a form of company which is run by 1 person, who acts as a director and a shareholder as well of the company. Its provisions are the same as that of a general company, except for some relaxations provided by the companies Act, 2013.
Company registration is only for those who are starting a new company. If you are looking to open a company, get the service from BTHAWK.