If you are planning to start a new business, then you should also think of registering it. Business registration is very important and offers n numbers of benefits. It protects the business and secures the rights against any third party. New business registration is the primary thing that the business owner does after the incorporation of the company.
Business registration in India is not a tedious job as there are several types of business form available through which you can register your business. However, while registering or incorporating a business for that matter, picking the right company structure is also important. The right business structure will allow you to run your business efficiently and meet all your business requirements.
Let’s take a look at the business structures in India:
One Person Company: OPC is recently introduced in the year 2013. One Person Company is the best way to start a company if there is a single promoter or owner. It enables the sole-proprietor to carry on his work and be a part of the corporate framework.
Limited Liability Partnership: LLP is a separate legal entity, and the liability of the partners is only limited to the contribution agreed in the agreement.
Private Limited Company: In the eyes of the law, PLC is regarded as a separate legal entity from its founders or promoters. A private limited company has shareholders and directors; each of them is regarded as a company employee.
Public Limited Company: PLC is a voluntary association of individuals in a company incorporated under the company law. It has a separate legal existence, and the liability of the members is limited to the shares they hold.
How Business Registration Helps In Getting Faster Business Loan Approvals?
You can choose the right business structure that best suits your business needs and accordingly register the business.
|Company Type||Ideal for||Tax Advantages||Legal Compliances|
|One Person Company||Sole owners||Tax holiday for the first three years under Start-up India||Business returns to be filed|
|Limited Liability Partnership||Service-oriented businesses||Benefit on depreciation||Business tax returns and ROC returns to be filed|
|Private Limited Company||Businesses with high turnover||Tax holiday for the first three years under Start-up India||Business tax returns and ROC returns to be filed, and Audit is mandatory|
|Public Limited Company||Businesses with high turnover||Tax exemptions||Mandatory audits and business returns to be filed|
The other forms of business structures include HUF (Hindu undivided Family), sole proprietorship, and partnership firms.
How to do Business Registration in India?
Registering a company in India is a 4-step simple process. The following are the things that you will need to acquire:
- Digital Signature Certificate (DSC)
- Director Identification Number (DIN)
- Registration on the MCA portal
- Certificate of Incorporation
With this, you can register your new business online.
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