Registrations
Registrations
It’s the 1st brick of your building. After doing all this work you need to register your business/company. The company can be registered in the following ways
A. Sole Proprietorship
Sole means an individual. Proprietorship, the owner of that business. It’s registered when the company is going to be operated or run by an individual. There are very less compliances in it and opportunities to get benefits in taxations too.
B. Partnership firm
Firm registration is needed when a company is going to be managed by two or more people and everyone is considered a partner. These firms are governed by the Indian Partnership Act, 1932.
C. LLP (Limited Liability Partnership)
It’s a partnership firm registered with MCA (Ministry of Corporate Affairs). LLP means your liabilities are limited and you are restricted to invest in the company. Here the partners are owners and manage the company. In LLP only the partners can invest in the business. In LLP there are very less compliances.
D. Private Limited
It’s also registered with MCA (Ministry of corporate Affairs) and called a private company. The minimum paid capital should be Rs. 1,00,000 for a private limited company. There could be a minimum of 2 and a maximum of 200 members in a private limited Company. A private limited company’s director can be the director of many companies as he wants. Here the director will be the manager and the partners will be the shareholders. Here they can collect the investments from outside by giving the shares of their company. In a private limited company, we have to follow fa ew basic guidelines of govt. like compulsory audit (with computation, balance sheet & audit report), filing ROC, and other legal documents. Here the compliances are more in comparison to LLP.
E. Public Limited
It’s not a private company and shares can be transferred easily. There should be a minimum of 7 and maximum no limits of shareholders. There must be a minimum of 3 directors in a public ltd. company. The minimum paid of capital for a public limited company should be Rs. 5, 00,000. A public limited company’s director can be a director of maximum 15 companies. It requires a TRADING CERTIFICATE after registration to start it’s business.
Other Registrations
GST
GST registration is mandatory for those who are selling their product/services outside of their state or if their turnover is more than 20 Lakhs. If you are applying for any government/ corporate tenders then also you need the GST registration.
PAN
PAN is always considered ID proof. You can say a financial ID proof. Basically, it’s required while we are filing income tax, but at the time of bank account, vehicle purchase, vendor registration, or wherever you need to submit KYC, PAN is compulsory. A company pan card is essential for a company’s income tax filing.
TIN
TIN is required for deduction of TDS. There are different slabs the government has fixed for different businesses. The companies who'll deduct the TDS from the gross value of your invoice need to provide the TDS certificate through which you can claim the deducted value at the time of filing income tax.
Trademark Registration
Trademark is a brand name, logo, symbol, or design that we use for our product or services. It makes our product different from other competitive brands. In short, it’s a copyright of your product/brand. The validity of the trademark is for 10yrs after that you have to renew it again.
Trade License
Generally Trade Licence is issued by the state govt. (Municipality). It’s a mandatory registration to run a particular business.
These are the basic registration you need to follow to run a business in India. Beyond that, there is also another legal procedure like a deed & agreement, bank account, and a few official documents you need to print to run any business.
Types of Government Registrations
Recommended For
Ease of Accommodating Investment
Limited Liability Protection
Tax Advantages
Perpetual Existence
Statutory Compliances
Sole Proprietorship
Small Traders and manufactures
Impossible
No
Minimal
NO
Minimal
LLP
Professional Services Firms
Ease of Accommodating Investment
Limited Liability Protection
Tax Advantages
Perpetual Existence
Statutory Compliances
Pvt. Ltd.
Recommended For
Ease of Accommodating Investment
Limited Liability Protection
Tax Advantages
Perpetual Existence
Statutory Compliances
Proprietorship vs Limited Liability Partnership (LLP) vs Company
| Features | Proprietorship | Partnership | LLP | Company |
|---|---|---|---|---|
| Definition | Unregistered type of business entity managed by one single person | A formal agreement between two or more parties to manage and operate a business | A Limited Liability Partnership is a hybrid combination having features similar to a partnership firm and liabilities similar to a company. | Registered type of entity with limited liability to the owners and shareholders |
| Ownership | For One Person Company | |||
| Registration Time | 7-9 working days | |||
| Promoter Liability | Unlimited Liability | Limited Liability | ||
| Documentation | ||||
| Governance | – | Under Partnership Act | LLP Act, 2008 | Under Companies Act,2013 |
| Transferability | Non Transferable | Transferable if registered under ROF | Transferable | |
| Compliance Requirements | Know More | |||