Register a Company
Registering a business in India isn’t what it used to be a decade and a half ago. With the ease of access came more options & complex models. The key factors to that determine the decision about selecting a form of business are: funding support structure provides, start-up costs, compliance & the tax benefits offered.
Here are some of the company forms that we help incorporate:
Two or more individuals get together to form a partnership and manage & operate a business in accordance with the terms of a Partnership Deed. The partners have unlimited liability. The main attraction of this form of a business are low costs, ease of setting up and minimal compliance requirements.
- At least two partners.
- Up to 10 partners (those partners engaged in any other business can be up to 20).
- Division of profits is mutually agreed upon by the partners.
- The deed should include: names of the partners and their addresses, name of the business, date of commencement of operation, capital invested by each partner, profit-sharing ratio, bylaws dictating the terms of intake and removal of a partner.
Registration in this case is optional.
Documents Required for Partnership Registration
- Form No. 1 under Partnership Act
- Partnership Deed signed by all partners
- Affidavit declaring intent of becoming a partner
- Rental or lease agreement of the for the official address
Two or more partners form a partnership with limited liabilities to form this type of business. An LLP follows the compliance and regulatory guidelines of the Ministry of Corporate Affairs (MCA).
Here are some of the features of an LLP that make it a lucrative option:
Seperate Legal Entity:
- An LLP by nature is a separate legal entity from that of the partners.
- Perpetual succession allowing the business to remain even if a partner quits. A dissolution requires mutually agreed upon terms.
Flexible Agreement:
- Ease of transfer of ownership of business.
- The concept of designated partners allows easy switch of ownership, thus proving convenience for investors.
Suitable For Small Business:
- No formal audits required for companies with a capital of less than INR 25 lakh and a turnover of less than 40 lakhs.
- Being a separate entity, it has the right to own property.
No separation of Owners & Managers:
- An LLP has partners, who own and manage the business. This is different from a private limited company because here directors & shareholders are the same people.
Documents required for incorporation
- PAN Card or passport (Foreign Nationals & NRIs)
- Adhar Card/ Voter’s ID/Passport/Driver’s License
- Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
- Passport-sized photograph Specimen signature
Note: All documents must be self-attested. In the case of foreign nationals and NRIs, all the documents must be notarised.
A Private Limited Company is the most popular type of corporate entity in India. Much like LLP, it is registered with the Ministry of Corporate Affairs (MCA).
Here are some features of a Pvt. Ltd. Company that makes it an investor’s favourite:
- Limited personal liability.
- Ease of access to bank credits.
- Company’s assets are protected because it is a separate legal entity
- Greater capital contribution and greater stability
- Increases the potential to grow big and expand
Documents required for incorporation
- PAN Card or passport (Foreign Nationals & NRIs)
- Adhar Card/ Voter’s ID/Passport/Driver’s License
- Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
- Passport-sized photograph Specimen signature
At TheStartupLab, we help members of of our ecosystem with more than just registration, to get started.
Here are some Pre-registration formal tasks that we guide our partners through:
- Application for DSC (Digital Signature Certificate).
- Apply for the DIN (Director Identification Number)
- Application for the name availability.
Post-registration tasks:
- Apply for the PAN and TAN of the company
- Issue a certificate of incorporation by RoC with PAN and TAN
- Opening a current bank account