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Public Limited Company
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Private Limited Company
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Nidhi Company
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Producer Company
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LLP
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Partnership
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NGO
Business Registration
Public Limited Company
With the caveat that a subsidiary company of another company that is not a private company must be regarded to be a public company for the purposes of this act, even if the articles of the subsidiary company still designate it as a private company.
Prior to forming a public limited company, the following considerations should be made: Make decisions regarding the proposed name to be used, the company’s goals, the proposed address for its registered office, the authorized capital, the number of promoters, and the number of directors. Shares that each promoter is required to subscribe for. The company name should be consistent with the main goals of the organization as stated in the memorandum of association. Although every name need not always be indicative of the company’s goals, when it does, it must be in line with those stated in the memorandum. [Rule8(2)(b)(ii)of \sCompanies(Incorporation)Rules,2014]
The proposed name must not be among the undesirable names listed in Rule 8 of the 2014 Companies (Incorporation) Rules.
The Company must have the bare minimum amount of paid-up shares as may be required.
Business Registration
Private Limited Company
In India, one of the most popular types of legal entities is a Private Limited Company (PLC). The Companies Act of 2013 governs private limited companies, which must have a minimum of two directors and two shareholders, one of whom must be an Indian citizen and resident.
In order to register a company in India, you must have the following minimums:
Two directors One individual must be an Indian national or resident.
2 Shareholders – Directors may possess shares of stock.
Indian registered office
In India, 100 percent foreign direct ownership (FDI) is allowed in the majority of industries, and there are no restrictions on foreign ownership of private limited companies’ shares. Because of this, the majority of overseas subsidiaries are founded in India as private limited companies.
Business Registration
Nidhi Company
In India, Nidhi Companies were established to encourage its members to practise frugal living and conserving money. Nidhi firms are permitted to lend to and borrow from its members. As a result, only members of the Nidhi firm can donate money to it (shareholders). When compared to the banking industry, nidhi firms are tiny and are mostly used to encourage saving among a group of people. You can also consult the article “Starting a Nidhi Company” located in the India Filings Learning Center to learn more about establishing a Nidhi Company in India. This article focuses on the specifics of registering a Nidhi Company in India.
The Nidhi Companies are legally recognised limited companies that accept deposits from and lend to their members. As a Nidhi Company is similar to an NBFC, its operations do come under the supervision of the Reserve Bank of India. However, the RBI has exempted Nidhi Companies from the basic rules of the RBI and other regulations that apply to an NBFC because they ONLY deal with shareholder-member money.
Business Registration
Producer Company
India’s economy is heavily reliant on agriculture. The livelihood of over 60% of the people is derived from agricultural activity. However, farmers and primary producers have fought a long battle in India.
The Indian government established an expert group under the direction of economist Y.K. Alagh to investigate these issues. They brought the Producer businesses concept to the Indian economy in the year 2002. Since then, they have assisted primary producers in gaining access to markets, input, loans, and other resources.
A producer company is a group of farmers or agriculturalists that has obtained legal recognition and whose goals are to raise their standard of life while ensuring that their access to resources, earnings, and profitability are all in good standing.
Business Registration
LLP
Because it combines the advantages of both a partnership firm and a company into one type of organisation, limited liability partnerships (LLPs) have grown to be favoured by entrepreneurs.
In India, the Limited Liability Partnership (LLP) concept was first adopted in 2008. An LLP combines elements of a company and a partnership firm. The LLP is governed by the Limited Liability Partnership Act, 2008 in India. An LLP must have a minimum of two partners to be incorporated. However, there is no upper restriction on how many partners an LLP can have.
A minimum of two chosen partners must be persons and at least one of them must have a residence in India among the partners.
Business Registration
Partnership
One of the most significant corporate organisation structure types is a partnership. A partnership firm is a grouping of two or more people who form a company and distribute the revenues according to a predetermined formula. Any type of trade, occupation, or profession is included in the partnership business. Compared to corporations, a partnership firm can be established more quickly and with less regulations.
Partnership companies in India are governed and regulated by the Indian Partnership Act, 1932. The people who join forces to form a partnership firm are referred to as partners. A contract between the partners establishes the partnership firm. A partnership deed, the document that governs the partnership firm’s and the partners’ interactions with one another, is the agreement between the partners.
Business Registration
NGO
An NGO is a non-governmental organisation that works to improve society at large through philanthropic endeavours. Depending on the activity you want to pursue, you can start it as a Trust, a Society, or a Non-Profit Company [Section 8 Company].
All non-profit organisations, including Trust, Societies, and Section 8 Companies, are collectively referred to as NGOs in India. Such non-profit organisations are also known as “Sangathan,” “Sangh,” and “Sangam.” All non-profit NGOs are eligible for an income tax exemption.
These are occasionally mistaken with non-profitable businesses, which denotes a conventional company that is not turning a profit.
Vakilsearch will assist you in making the best decision and will walk you through the full NGO registration procedure.
