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How To Start a Company and Process To Register a Company in India?

A company is one that a group of people makes together. It is used to sell and buy a variety of goods or to provide or take services. In India today, many such companies are holding the position of number one in their sectors. But there are many companies which are still struggling. Nowadays, there is so much competition in the market and it has become hard to balance. Today we will tell you in detail what a company is and how it works, as well as how many types of companies are there.

What is The Company?

When a few selected trained officers run an organization together, it becomes a company. The company is formed by the shareholders present in the company to sell and buy goods or to exchange services. Some companies are associated with for-profit organizations and some companies also work for non-profit organizations. A single person cannot run any company, he needs many workers to run that company, for which he provides employment to many people. Companies have the right to buy shares of other companies and name them, and can also sue other companies if needed. Apart from this, a company also borrows money from the market for its capital growth and also collects money by selling its shares. If seen legally, then all types of companies have the same rights and responsibilities. Also, they have some legal rules as a responsibility, which is mandatory for them to follow. If any company violates the rules made by the law, then it is a punishable offence for them.

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Types of The Companies

There are generally many types of companies, which are as follows: –

  • Personal Company
  • Private Limited Company
  • Public Limited Company
  • Limited Liability Partnership

Personal Company

A company is also formed based on members, but sometimes it happens that some people are thinking of starting their own business, but at that time they do not have suitable capital. is. In such a situation, he single-handedly invents a new company to encourage young entrepreneurs and gradually promotes his business.

Private Limited Company

A private company is a company in which two or more persons are registered under the Companies Act and form their own company. They set up a business and start a company knowing about all the trained things related to it.

Public Limited Company

A company which is formed by a minimum number of 7 members with legal items is called a public company. There is no limit to the maximum number of members in this company, as it is a registered company. This company has complete freedom to sell and buy its shares independently. When a person joins a public company, he too falls under the public company.

Limited Liability Partnership

A company is one that is started and run by some partners. To run any company, 2 or more partners are entitled to get ownership of that company.

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Features Of the Company

Like Person

A company also acts like a person, the way a human being is firstborn according to the will of God. In the same way, a company takes birth according to the wishes of the human being. Just as a man’s life goes on, he grows, eats, drinks, and sees sorrow and happiness in life, in the same way, a company has to suffer all kinds of sorrows i.e. loss and profit. Those who harm them also benefit.

Independent Company

An Independent company is such a form of company. Under which any company forms an entity separate from its members. She can keep the entire property in her name and can make and break any contract at any time. In that company, the company owner has so much freedom that he can sue others for any kind of mistake. And other companies can also sue that company if any troublesome situation arises.

Away From all Effects

A company is one that does not affect natural effects. In simple words, even after the death of any member and operator of any company, his insanity or his property is completely ruined, a situation does not affect a company.

Limited Liability

Many members are present in a company. Those who take the shares of that company annually in their name and become members of that company. The entire guarantee of any person who takes shares from the company is limited only to the guarantee given by the company.

Share Transfer Facility

One of the biggest features of a public company is that they can freely transfer the shares they own to anyone. Now under any circumstance, if the owner of a company wants to sell and buy the shares he holds, he can also buy and sell his shares through the exchange.

Ownership and Management

In general, the number of members in a public company is limited and this means that a public company has a large number of members. Those who are not able to participate in every task and management in the company from day today. Therefore, the board of management of a company is created, which completely ruins the company. The main directors of the company are elected by the members of the company through the election process, so they are given full ownership of the company’s management.

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Why It is Necessary To Register Your Company?

It is very important to register any one company to run it smoothly. Let us know what are the main reasons why you benefit from registering a company and why you should register a company.

Registration of The Company Gives The Company The Main Identity

To run any company, it is very important to register it. Because it gives the company a unique identity. If the company is legally registered, then it is easily able to convince consumers of your enthusiasm. By legal registration, your company gets a legal name, address, and identity. If you register your company with your preferred name, then you also get to know whether someone has used this name for their company before and if you have chosen that name for your business. No person can use that name for their company name.

This Protects You From Personal Liability

When you register a company even if it is in your name, you do not have to compensate for any loss in the company personally. In simple words, a lawsuit for any heavy damages like any property can be filed in the court, but the person who owns a registered company is not fully responsible for it. If your company is registered, then assume that there is a loan outstanding on your company or there is an outstanding amount of the company that you have to pay, in such a case if you are unable to pay and there is a big loss in your company, So it cannot be compensated by selling any item of your house because your company is registered.

It Is Easy To Attract Customers

It is not easy for any customer to believe in any company or product manufactured by him, but the members present in the company make the product so attractive that it attracts customers and gives them confidence. It becomes very easy to give.

Getting Investors For Your Company Easily

To run any company, it requires a full financial amount. In such a situation, no one person can raise a sufficient amount to run a company nor can he get enough resources. In such a situation, the company needs some investors or it takes a loan from a bank to fulfil its needs, for which registration of that company is very important. If a company is not registered, then no investor invests his amount in such a company. Before inviting an investor to invest in your company, you must register your company.

To Maintain The Business For a Long Time

Some people start their business on a small scale, at that time they do not register their business. In such a situation, how long he will be able to run his business, how long it is not possible to guess. If you want to run your business for a long time, and it keeps your plans ready in advance, then you must get your company registered.

How To Register a Company in India?

For any company to be legally registered, it is mandatory to follow a procedure which is as follows: –

  • A Korea number is issued at the time of registration of the company under the Indian Companies Act, which is a unique identification code by the DIN ((DIRECTOR IDENTIFICATION NUMBER) MINISTRY OF CORPORATE AFFAIRS. A person who wants to become the manager of the company by that code, This is his identity. To get this code, you have to go to MCA portal and fill e-form dir-3. For which you also have to pay an application fee of Rs 500. Have to do it.
  • In the second stage, you have to get the Digital Signature Certificate DIGITAL SIGNATURE CERTIFICATE (DSC). If you want the registration of your company to be completed quickly, then it is very important to get this certificate. After this, you are also required to fill a form while doing business registration, this will be done by the Government of India authorized third party companies like Tata Consultancy Services, National Informatics Center, MTNL Trustline, e-mudra. All these facilities are provided by the government to each company. Huh. To register a company, you have to go to the DSC office of a company which is authorized by the Government of India and you have to fill your application for registration of your company. If you fill the application through BSC, then all the expenses incurred at the time of application depends on the company. According to e-mudra, its price has been kept at only 899 rupees.
  • In the third step of this process, on which name you have to register your company, you should first check that name through the MCA portal, that the name you want to register is already the name of another company But not registered If the name you think is not registered in the name of any company, then you can keep that name after your company, after that you have to fill an inc-1 form. This simple and simply means that the name you think has been registered for your company, no other person can use this name.
  • According to the Companies Act 2015, some main rules and laws have been implemented for a company. According to him, Memorandum of Association and Articles of Association at the time of registration of the company are the two main business documents for the company which each company is required to obtain. Generally, both these documents give full details of the guidelines and rules law followed by a company. Which is mandatory as per the Companies Act 2015. Each company is required to have a lawyer or chartered accountant to make certain main types of documents. Both these documents have an important place for a company, so they should be made under the supervision of a trained person.
  • After all these procedures, you have to go to the MCA portal and submit another form, whose name is the denial form. Under this, if you want to register a forest person company, for that you have to fill the e-Form 2 INC-2 properly and submit it. Apart from this, for other types of companies, you have to fill the e-form INC-7.
  • During the process of the registration form, you are charged an amount which is stamp duty.
  • When your registration process is complete, a document is given to you after payment of stamp duty along with an invoice. You have to show it in the company registered office in the state in which you are going to establish your company.
  • After all this process, when all your documents are completed and you fill the complete form, after that all your documents are examined, which takes about 2 days. Now you need to get the in-corporation certificate for which you get the in-corporation certificate within a week on your registered email id. When you get your certificate of Incorporation through your email ID, then you should keep a copy of it and keep it with you, because in future all the important work you need that certificate.
  • If you want to open a current account in any bank in the name of your company, then you are also asked for a photocopy of the Memorandum of Association and Articles of Association.
  • When the registration process of the company is complete, then you must fill the online application for PAN card registration through NSDL online website so that you can register a PAN card in the name of the company.

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Other Required Documents for Register a Company

  • To register a company, a photocopy of the identity certificate of all the managers present in a company as well as their address certificate is required.
  • At the time of registration of the company along with other certificates, it is also mandatory for all managers to have a photocopy of the PAN card.
  • If you have purchased your land for office, then its certificate is required otherwise if you have mortgaged or rented land for office, then a photocopy of its certificate is also required at the time of registration.
  • If you have rented land, then it is also mandatory for you to have a No Objection Certificate obtained by its owner.
  • It is mandatory for the person who wants to register the company to submit his / her identity certificate and his / her registered email id.
  • At the time of company registration, it is mandatory to submit a photocopy of the bank statement of the person who owns the company and any other type of bill.

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Conclusion

It does not take much time to establish any company in India, earlier it took a long time to get it registered. But at present, this does not happen at all. Without registering any company, you cannot do successful business in it, so if you are laying the foundation of any company, then it must be registered with it. After registration, you are ready to face problems related to the future. A company is not run by a single person but with the support of all the managers of the company. To run the same company for the long term, a significant contribution is made by the consumers associated with that company.

FAQ ‘s

Q: Kiss Kind Of company Make Want?

Ans: To run any company, a sufficient amount of capital is required and if that is not what you have, then in such a situation you can get more profit by running a sole proprietorship company. If you want to give a big look to your business then you can start your business as a corporation.

Q: One company Where On Established To do Want?

Ans: The company should be established in such a place where all the items can be easily available according to the needs of the company. At such a place you will also have less trouble and you will have to reduce the charges.

Q: Start In The business Of Shape what Happen Want?

Ans: Initially the size of the business should depend on your capital and your capacity.

Q: Business Start do Time The business Of Main The challenges what Is it?

Answer:

  • Lack of capital and cash flow
  • A good plan for business
  • Good service and choice of product
  • Work more than expected
  • Any criticism for your product
  • Finding good employees
  • Time management
  • Balancing work and life

Q: what company Of for Permit License And Registration Of Is the requirement necessary?

Ans: Organizing a company is such a difficult task, but getting its registration done is not a very difficult task. Registration of any company is useful to secure your future, so it is very important to register the company and get permits and licenses for it.

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