Things You Need to be Aware About Setting up a Business in India
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Technology has been a stepping stone for entrepreneurial and creative minds for Setting up a Business. In a country like India innovative solutions are developing every day and new pathways for development emerges. If you are planning to avail the option of my company registration then you are at the right place. Starting off a definite business plan is essential as it would prevent mistakes and have an eye on the future.
The difference between private and public limited companies
It would evolve based on your business needs and investor you can choose a private or a public limited company as per your needs.
When it is a private company the name would start with Private limited. 2 people are necessary to start this company. Close to 200 members need to be members. of this firm and a couple of directors need to run the operations of the firm. A private company cannot invite the general public to subscribe to the shares of a company.
The public limited company ends with the name limited. 7 members required to start such a firm and there is no limit for members in such a firm. Nearly 3 directors would be necessary to supervise and manage the operations of a firm. Such a company would require the public to be subscribing to the shares of the company.
Sole proprietorship
If an individual plans to Setting up a Business of their own, you can register the business under the domain. You can take the help of company registration consultants to guide you in this process. The owner will run the operations of the business, take the profits and cover up the losses if it arises. Business assets and personal assets do not fall under sole proprietorship.
A few documents needed to run a sole proprietorship like personal identity documents along with bank statements. You may get in touch with a CA to help you further in this process.
One person company
This is completely different from sole proprietorship as it known as a one person company. According to the new act you may register a company without the presence of 2 directors. An OBC firm would be having tax benefits and you may be the sole director. Be retaining 100% of the shares. This would allow you to separate your personal assets from business assets as. It would provide a legal recognition to your company.
In addition it is necessary to obtain digital signature certificate along with the name approval of the company. There is going to be the requirement of articles of association, MOA. The consent of a director indicating that everything has submitted. All the necessary forms have to submitted with MCA and you may collect the certificate of sole proprietorship.
To sum up things if a company falls under the category of non- profit organization you may register it under section 8 of the company’s act. You will not be having section 8 under its name.
