how to register a company /firm / startup India (types of companies)
See the Effective Guidelines to Easily Register a Firm
Before registering the firm you have to make sure the classification of business formations. There are five major firms accessible. They are proprietorship firm, partnership firm, private limited firm, limited liability partnership and one person firm.
Types of firm:-
- Proprietorship firm: it is also a single man company. But, it’s not a firm so your responsibility is the unlimited at any case. So, it’s the simple and reliable way to begin the business. The proprietorship requires the service tax registration form or other VAT registration form and a present bank account.
- Partnership firm: it is also similar to proprietorship firm, but it requires only two people. So, in this partnership firm similar to unlimited and liability stipulation. The firm requires a registered partnership act through the active bank account with service tax registration or VAT registration.
- Private limited firm: it is one of the major business developments for the startups and it’s simple to register a private limited firm due to the INC 29 form and with no conditions of minimum capital. It requires the minimum of two directors and best for the developing startups and need to fund from VC firms or angel investor.
- Limited liability partnership: the partnership firm and the private limited firm have the same feature. It requires the minimum of two partners. The cost of development is high compared to LLP and a minimum need of capital as 1 Lac rupees.
- One Person Company: it is similar to the private limited firm. But, it needs a single person in a company. And their features also same to the private limited firm.
How to register a firm:-
- First, you have to acquire the Director Identification Number. This is the initial process in the registration that every manager of the firm should get their identification number.
- The DIN is mandatory for every manager such as each intending and existing managers have to get their IDN.
- The DIN form is accessible on the official site and you can register on your own on MCA website and get a login ID.
After filling the form you have to upload the form through clicking the e-form upload and must pay for applicable fees. Then use the DIN-2 form and the firm must intimate the ROC about entire mangers DIN through the DIN-3 form.
Then get the digital signature certificate.
And create a new account on an MCA portal through a new user registration.
And finally, apply for the firm to be registered.
PVT limited vs public company
REGISTRATION FEE legally 500 INR, with CA help 15,000/
register your home as office address, enroll your family number as the partner.