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Company Registration - Private Limited / One Person Company / LLP / Nidhi Company etc.

  How To Register A Company:

To efficiently register a company is a big decision. We are here to help you in an easiest way to register your company under correct structure.

Registering a company is a first step that has to be taken so, find out the pros and cons of different registration.
  • Type of Company Registrations.
  • How to register a company?
  • What are the limits, requirements and documents required for registration?
To Know the right structure of your business is equally important as any other activities related to business. In India, companies must register themselves as a part of the mandatory legal compliance to run your company efficiently one need to understand the type of companies in India.

Types of Companies In India:
Let’s understand the types of company in India and their Legal requirements, criteria and documents required for registration.

1. Private Limited Company (Pvt. Ltd. Company)

There should be at least two persons to form a private company i.e. the minimum no. of members in a private company is two. A private co. should have at least two directors. The name of a private limited co. must end with “Private Limited”. There are also some special privileges and exemptions enjoyed by a private co.

2. Public Limited Company (Ltd. Company)
There should be at least seven persons to form a private company i.e. the minimum no. of members in a private company is seven. A private co. should have at least three directors. The name of a public limited co. must end with “Limited”.

3. One Person Company

As per Companies Act, 2013 One Person Company means a company which has only one person as a member.It is basically a private company with some unique features.
Difference between Sole proprietorship and an OPC
A one person company is different from a sole proprietorship because it is a separate legal entity that distinguishes between the promoter and the company. The promoter’s Liability is limited in an OPC in the event of a default or legal issues.On the other hand, in sole proprietorship’s the liability is not restricted and extends to the individual or his/her entire assets.

4. Nidhi Company
As per section 406 of the Companies Act,2013, “Nidhi” means a company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefits, and which complies with such rules as are prescribes by the central government for regulation of such class of companies.

5. Limited Liability Company (LLP)
LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.