What are the types of company registration in India?

Following are the different types of the company formed in India:

• Private Limited
• Public Limited
• Section 8 (Not-for-profit Company)
• One Person Company
• Nidhi Company
• Non-Banking Financial Company
• Limited Liability Partnership

Rules concerning the compliances, basic minimum requirements, activities to be undertaken, requirements of promoters, etc. are different depending upon the type of company being registered.

Here in this article, we will discuss types of different company registration in India.

Types of Company Registration:

Following types of Company registration one can opt under Companies Act 2013:

• Private Limited Company: One of the most popular forms of business and it has gained recognition amongst the start-ups in India. Private Companies separate the liability of shareholders from the business and thus business assets don't form the part of personal assets. If you are seeking help for Private limited company registration in India, then 

Following are the characteristics of Private Company:

• Minimum 2 members & directors are compulsory for private company registration
• Members in private company cannot exceed 200 at any time
• The company enjoys the perpetual succession in terms it remains under the scope of law even after its members are deceased, insolvent or bankrupt.
• The liability of members is limited up to their shareholding, i.e. members are liable up to their assets, in case the company suffers any losses.
• These companies are not allowed to trade their securities on a stock exchange or it can't go for public subscription.
• SPICe forms are used for these company registrations which are available on MCA.

• Public Limited Company: Public Limited Companies can trade their shares in the stock exchange or can issue a fixed deposit. These companies have all the advantages of private limited companies as well as other benefits such as no limit on members, easy share transfer and more transparency. 

Following is the characteristic of public limited company:

• Minimum 3 directors & 7 shareholders are required for registration
• Name of these companies shall end with the word “Limited”
• It shall have a minimum paid-up capital of INR 5 Lakhs.
• SPICe forms are used for these company registrations which are available on MCA.

• Partnership Firm: These entities are similar to that of a sole proprietorship with the only difference between them being more than one person is involved in a partnership firm. Legal agreement or contract is formed in between the partners containing the clauses such as responsibility, authority, liability, profit sharing, etc. Partner's assets are not separate from that of business, and thus, they can be sold off during losses.

• Limited Liability Partnership: LLP is registered under LLP Act 2008. The main edge of this corporate is that no partner is liable for the misconduct of another partner's negligence. LLP has the advantage of limited liability of its owner along with it requires minimal compliances. LLP is formed by applying online through MCA by filing e-form FiLLip (Form for incorporation of LLP). LLP Agreement is formed, which contains the rights & obligations of its partners and the same is filed simultaneously after getting the registration certificate of LLP.

• OPC: One Person Company now a day is gaining recognition amongst the new ventures that are willing to start their business solo. OPC allows the entity to create a single person economic activity. This company can be formed with just one member who can also be a director. However, any other form of company required more than one member.  

• Section 8 Company: This Company is registered as a Non-Profit Organization with the main objectives to promote arts, culture, commerce, charity, education, environment protection, etc. The profit incurred by NPO is engaged in promoting its objectives. This company cannot use section 8 or word limited after its name. 

• Nidhi Company: Nidhi Company is different from that of other companies as it deals with deposit and loan to or from its members only. Nidhi Companies are formed with the main objectives of cultivating the habit of saving amongst its members and are governed by Nidhi Rules 2014. Nidhi Company has to be incorporated with a minimum of 7 members and must increase its members to 200 after the expiry of one year of its incorporation. If you want to get Nidhi company Registration consultant in India then just consult experts of Swarit Advisor. 

Conclusion

Thus there are several options to choose from; one can select the company as per its capital & other requirements. You can contact us for getting the registration of any of the above companies along with their compliances or for similar consultation. Our team of experts will assist in all the matters concerning company registration from start to end.