Setting up a company in India is a strategic decision for many entrepreneurs and businesses looking to tap into one of the world's fastest-growing economies. With its dynamic market, skilled workforce, and favorable policies, India offers significant opportunities. Ahlawat & Associates, a premier law firm, provides expert guidance on the legal and procedural aspects of company formation in India.
Types of Business Entities in India
Before setting up a business in India, it is essential to understand the different types of business entities available:
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Private Limited Company (PLC):
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Most common form of business entity.
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Limited liability for shareholders.
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Minimum of two and a maximum of 200 shareholders.
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Suitable for small to medium-sized businesses.
Public Limited Company (PLC):
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Can offer shares to the public.
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Minimum of seven shareholders, no maximum limit.
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Suitable for large-scale businesses and those intending to raise capital from the public.
Limited Liability Partnership (LLP):
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Hybrid of a company and a partnership.
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Limited liability for partners.
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Suitable for professional services and small businesses.
One Person Company (OPC):
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Single owner with limited liability.
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Suitable for solo entrepreneurs and small businesses.
Sole Proprietorship:
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Single owner with unlimited liability.
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Simplest form of business entity.
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Suitable for small-scale businesses.
Partnership Firm:
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Formed by two or more individuals.
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Partners have unlimited liability.
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Suitable for small to medium-sized businesses.
Steps to Form a Company in India
1. Choosing the Type of Business Entity:
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Decide the type of business entity based on the nature and scale of business.
2. Obtaining Digital Signature Certificate (DSC):
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Required for electronic submission of forms to the Ministry of Corporate Affairs (MCA).
3. Acquiring Director Identification Number (DIN):
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Each director must obtain a DIN by applying to the MCA.
4. Name Approval:
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Propose a unique name for the company and apply for name approval through the MCA’s RUN (Reserve Unique Name) service.
5. Preparing and Filing Incorporation Documents:
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Memorandum of Association (MoA): Outlines the company’s objectives.
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Articles of Association (AoA): Details the company’s management structure and operational rules.
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Other required documents: Address proof, identity proof of directors, etc.
6. Incorporation Filing with the MCA:
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Submit the incorporation documents along with the prescribed fee to the MCA through the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form.
7. Certificate of Incorporation:
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Upon verification, the MCA issues the Certificate of Incorporation, which includes the Corporate Identity Number (CIN).
8. PAN and TAN Application:
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Apply for the Permanent Account Number (PAN) and Tax Account Number (TAN) for the company.
9. Opening a Bank Account:
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Open a bank account in the company’s name to commence business operations.
10. Compliance with Post-Incorporation Requirements:
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Register for GST, Professional Tax, Employee Provident Fund (EPF), and other necessary licenses and permits.
Regulatory and Compliance Requirements
1. Registrar of Companies (RoC) Filings:
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Regular filings with the RoC, including annual returns and financial statements.
2. Tax Filings:
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Compliance with income tax, GST, and other applicable tax regulations.
3. Statutory Audits:
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Conducting mandatory audits as per the Companies Act, 2013.
4. Board Meetings and General Meetings:
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Holding regular board meetings and annual general meetings (AGMs).
5. Maintenance of Statutory Registers and Records:
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Keeping up-to-date statutory registers and records.
How Ahlawat & Associates Can Assist
Ahlawat & Associates provides end-to-end legal services for company formation in India:
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Legal Advisory: Expert advice on choosing the appropriate business entity.
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Documentation: Assistance in preparing and filing all necessary documents.
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Regulatory Compliance: Ensuring compliance with all regulatory requirements.
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Post-Incorporation Services: Ongoing legal support for statutory compliance, tax filings, and other business needs.
Conclusion
Ready to Start Your Business Journey in India?
Contact Ahlawat & Associates Today!
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Visit Us: Ahlawat & Associates
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Email Us: contact@ahlawatassociates.com
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Call Us: +91-11-23384592