Company Registration is also known as Company Incorporation.
Incorporation is the formation of a new corporation/ company (a corporation being a legal entity that is effectively recognized as a person under the law). The corporation may be a business, a non-profit organization, a startup, a micro small or medium scale business. MCA regulates corporate affairs in India through the Companies Act, 1956, 2013 and other allied Acts, Bills and Rules. MCA also protects investors and offers many important services to stakeholders. The Ministry is primarily concerned with administration of the Companies Act 2013, the Companies Act 1956, the Limited Liability Partnership Act, 2008 & other allied Acts and rules & regulations framed there-under mainly for regulating the functioning of the corporate sector in accordance with law.
A Company can register itself in any of the following Business structure.
- One Person Company:- OPC is a company where one person handles all the company related work. A Single shareholder is the sole owner of the company. It has a separate legal identity of its own. It has benefits like Limited liability, Risk taking without risk to personal assets.
- Limited Liability Partnership Firm:- A LLP is where the liability of the partners is limited. In LLP, each partner is not responsible for another partner’s negligence. It is also a separate legal entity.
- Private Limited Company:- In a Private limited company the ownership is private and limited by shares . It limits the stakeholders right in trading publicly.
- Public Limited Company:- A Public company is formed largely by voluntarily people joining the association .It can issue Securities to public at large by IPO. However, a Public limited company requires both Certificate of Incorporation as well as Trading Certificate to operate its functioning.
Other forms of business structures include Sole proprietorship, Hindu Undivided Family, and Partnership firms. However, these structures do not come under the ambit of company law.
Benefits of Company Registration
- The credibility of the company is increased when it is registered and it is a legal identity in the eyes of law.
- The Goodwill gained by the company so registered attracts more customer to the company.
- The company’s assets are protected if any loss occurs during the continuity of the company.
- A company can fight and file suits against any third party.
- A company gets its own Separate legal Identity to the Promoters, Directors and Shareholders.
- A Registered Company is more reliable as investors invest money in the company by knowing the credibility of the company from the Banks. So capital is generated to procure goods and services.
- The members of the registered company get the benefit of limited liability – to pay only to the extent of their un discharged liability.
- A registered company gets the benefit to Transfer shares easily.
- The work is distributed so the working of a company gets flexible. As ownership and management is separate in a registered company.
Documents to be provided for Company Registration
1) Directors and Shareholders Documents
- Pan card (mandatory)
- Aadhaar card (mandatory)
- Mobile Number
- E-mail ID.
- 2 Passport Size Photo
2) Proof of Identity and Proof of Address
- Passport, Driving License, Voter ID (Any one)
- Bank Statement, Electricity Bill, Telephone Bill
- Rent Agreement/Lease deed