Company Registration in India, Types & Benefits | Enterslice
Picking the right company structure for your business is as important as any other business-related activity. The right business structure will allow your enterprise to operate efficiently and meet your required business targets. In India, every business must register themselves as part of the mandatory legal compliance. Before we learn how to register a company, let’s try and understand the types of business structures in India.
Types of Company structure
Private limited company
A private limited company is a separate entity. The liability of the members of a Private Limited Company is limited to the number of shares individually owned by them and the shares of the company cannot be publically traded.
Section 8 Company
Section 8 Company is listed under Section 8 of the Companies Act, 2013. It has been authorized for expanding commerce, art, science, education, research, social welfare, religion, etc protection of the environment if any, or other income is used for advertising only the objects of the company and no profit is paid to its members. Section 8 Company or Section 25 Company is a company registered under the Companies Act, 2013 for charitable or not-for-profit objectives.
One Person Company (OPC)
OPC is a separate legal entity from its members, gives limited liability security to its shareholders, has a flow of business and is simple to incorporate. One person company is similar to the private limited company but it only needs 1 single person.
Limited Liability Partnership
In the LLP partnership, every partner holds limited liabilities. It, hence, can exhibit components of partnerships and corporations. In an LLP, each partner is not accountable or responsible for another partner’s misconduct or carelessness.
Nidhi Company Registration
A Nidhi Company is a kind of Non-Banking Financial Company (NBFC). It is determined to borrow and give money to its members. It implants the habit of savings among its members and acts on the principle of mutual profit.
BENEFITS OF COMPANY REGISTRATION / INCORPORATION
- Legal Identity/Recognition to the business
- Numerous Tax Benefits
- Get investment/ funding for your Business.
- Your Liability as an individual is limited
- Enhanced Brand Image and Improved Trust Factor
Why there is a need to register a company?
- Getting Loans on the name of the company to invest in a different company
- Separate legal entity is also there
- Liabilities of directors are limited, by which they will not liable personally for company affairs.
- Director of the Company can get tax benefits
- From the time of its establishment, the company has the power to take, hold and dispose of the property.
- To build goodwill of your brand
- You can reach globally with company body structure
- To establish a platform to deal with great industries, suppliers, vendors, and customers.
- The company can claim to others with its own or can be sued by anyone, without the personal interest of Entrepreneur
- You can distinguish yourself from others by entering into the corporate environment.
- You can designate money from the general public to invest in Company
How Enterslice can help you Incorporate a company?
