Business Registration Service in India

Having a great idea or opportunity lays the founding stone to start a business in India. However, to do business in India, you need to formally incorporate your business and undertake all your business transactions under such an entity. In India, there are different types of entities you can incorporate to conduct your business. Let’s have a detailed understanding about business registration services in India. 

Types of Business Registration in India

To make things simpler, the following are the types of business incorporation you can consider in India along with their key features:

Proprietorship Firm Registration

Key Features:

• The simplest form of business registration
• Business is being operated on the PAN card of the proprietor
• Business does not have separate legal existence
• Unlimited liability of the proprietor in case the business runs into losses or shuts down
• UDYAM registration or GST registration certificate acts as a valid business registration proof as business does not have separate legal identity

Key Requirements:

• Obtain UDYAM registration, GST registration or registration under the Shops and Establishment Act

Partnership Firm Registration

Key Features:

• Need 2 or more persons to incorporate partnership firm
• Has a separate legal identity, PAN card and bank account
• All the business transactions are undertaken in the name of the partnership firm
• The liability of the partners is unlimited

Key Requirements:

• Creation of partnership deed
• Application for separate PAN card of the partnership firm
• Registration of partnership firm with Registrar of Firms (RoF)
• Obtain UDYAM registration, GST registration or registration under the Shops and Establishment Act

Limited Liability Partnership (LLP) Registration

Key Features:

• Need 2 or more persons to incorporate an LLP in India
• Has a separate legal identity, PAN card and bank account
• All the business transactions are undertaken in the name of LLP
• The liability of the partners is limited up to the amount of capital
• The Ministry of Corporate Affairs is the regulator of LLPs

Key Requirements:

• Creation of partnership deed
• Filing of application for incorporation of LLP with MCA
• Obtain UDYAM registration, GST registration or registration under the Shops and Establishment Act
   

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Private Limited Company Registration

Key Features:

• Need 2 or more persons who act as the directors and shareholders of the company
• Directors and shareholders can be different persons
• Has a separate legal identity, PAN card and bank account
• All the business transactions are undertaken in the name of the company
• The liability of the shareholders is limited up to the amount of share capital
• The Ministry of Corporate Affairs is the regulator of companies
• The compliances in the case of private limited companies are higher as compared to other constitution formats

Key Requirements:

• Creation of Memorandum of Association & Articles of Association
• Filing of application for incorporation of company with MCA
• Obtain UDYAM registration, GST registration or registration under the Shops and Establishment Act

One Person Company (OPC) Registration

Key Features:

• This is another format of company that can be incorporated by a single person who acts as the director and shareholder
• Such a person needs to appoint a nominee who can take over after the demise of the company’s owner
• All the business transactions are undertaken in the name of the OPC
• The liability of the shareholder is limited up to the amount of share capital
• The Ministry of Corporate Affairs is the regulator for OPC
• The compliances in the case of OPC are higher as compared to other constitution formats but lesser as compared to private limited company

Key Requirements:

• Filing of application for incorporation of OPC with MCA
• Obtain UDYAM registration, GST registration or registration under the Shops and Establishment Act

Startup Registration

Key Features:

• This involves registering your business as startup with the government.
• You can reap multiple benefits conferred by the government for startups. This includes government grants, tax exemptions, concession in fees for IPR registrations etc.
• Any company, partnership firm or LLP can register itself as a startup if it fulfils the specified criteria.

Key Requirements:

• Incorporate your business in the form of a company, partnership firm or LLP.
• File an application for startup registration (DPIIT recognition) on the Startup India portal.

Each type of business entity has certain pros and cons across scalability, compliances, number of members, taxability etc. Choosing the right type of business constitution is important to ensure seamless conduct of business operations. Here’s how Exim Advisors help in incorporation of your business:

• Assisting in selecting the right format of business entity
• Gathering of all the necessary documents and filing of application for incorporation of business entity
• Liaising with the regulators and resolution of queries
• Sectoral and other regulatory registrations
• Securing intellectual property rights like trademarks, patents and copyrights
• Handling post-incorporation compliances
• Business consultancy and advisory for the expansion and growth of your business

For detailed Consultation about any type of Business Registration Service, feel free to contact Exim Advisory.