After you have thought of a fantastic business concept and chosen how to register a business company in India, you will, without a doubt, be required to go through a number of steps in order to officially establish your company in India. After making the decision to register, it is only normal to have a lot of questions, such as where you should receive the application form, what the procedure for registering is, how much the registration cost is, and who you should contact so that your registration goes well.
Before beginning the process of company registration, you are required to have a fundamental understanding of the nation in which you want to do so. This is a prerequisite for moving on with the registration. India is the seventh-largest nation in the world, and its developing economy offers a wealth of prospects for businesses throughout the globe. Because India is the second most populous nation on the planet, any company that operates there has a good chance of being successful in any industry they operate in. India ranks behind only the People’s Republic of China.
First Things First: What Exactly Is a Company?
A corporation is an organization that is founded and established in order to engage out business activities. A company is a kind of legal entity that is recognized under the company Act of 1956 and has to be registered with the government. This business Act establishes two distinct types of companies, which are respectively referred to as private corporations/companies and public companies.
First, Let’s Have A Grasp On The Difference Between A Private Company And A Public Company
What Exactly Is a Limited Private Company?
- The following is a list of characteristics that are associated with a private limited company:
- There is a limit of fifty people that may be members of a private corporation.
- It prevents the shareholder from transferring their shares to any other person.
- Should not send out invitations to the general public to subscribe for business shares.
- A minimum capital of one lakh rupees is required for a private corporation; however this amount is subject to change on an ongoing basis.
- It is recommended that the private corporation have just two board members, and there might be two directors.
- It is possible for a private corporation to begin operations after it has been formed.
What Does It Mean To Be A Public Limited Company?
- In the public limited corporation, the number of members may be as high as desired.
- It is possible for it to transfer his or her shares to the company’s shareholders.
- It makes it possible to invite members of the general public to subscribe for business shares.
- It is required that the public limited company have a minimum capital of 5 lakh rupees, however the capital may change on an ongoing basis.
- Seven board members are the bare minimum that must be present in a public business, and at least three of those board members must be directors.
- After the firm has been issued its beginning certificate, only then may it begin doing business.
Instructions on How to Register a Company for Business Purposes in India
To company registration consultant, it may take duration of about 15 days to a month and sometimes more than that. The procedure of registering a corporation is overseen by a regional office of the Registrars of the Company (ROC), which may be found in every state. On white dust, we are going to provide a detailed walkthrough of the process of registering a business, particularly in India.