{"id":19925,"date":"2020-11-21T16:59:36","date_gmt":"2020-11-21T11:29:36","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=19925"},"modified":"2025-03-05T18:09:18","modified_gmt":"2025-03-05T12:39:18","slug":"types-of-company-registration-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/types-of-company-registration-in-india\/","title":{"rendered":"An Outlook on Different Types of Company Registration in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The organization structure is one of those important factors that determine what type of tax one has to pay or compliances one has to follow. Henceforth, one of the most crucial decisions business owners can make is determining what type of business registration is best for them. Furthermore, our legal framework empowers different types of companies to exist under various types of <a href=\"https:\/\/corpbiz.io\/company-registration\" title=\"Company Registration\"><strong>company registration<\/strong><\/a>. In this blog, we would explore various types of company registration available in our country.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/types-of-company-registration-in-india\/#What_are_the_Various_Types_of_Business_Models\" >What are the Various Types of\nBusiness Models?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/types-of-company-registration-in-india\/#Deep_Analysis_on_Types_of_Company_Registration\" >Deep Analysis on Types of Company Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/types-of-company-registration-in-india\/#Types_of_Private_Companies\" >Types of Private Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/types-of-company-registration-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Various_Types_of_Business_Models\"><\/span>What are the Various Types of\nBusiness Models?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>In the purview of Companies Act, 2013 here is the tabular representation of a different classification of business entities exists in India;&nbsp;<\/strong><\/em><\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  Sl No\n  <\/td><td>\n  Criteria on basis\n  of: \n  <\/td><td>\n  Form of &nbsp;Companies\n  <\/td><\/tr><tr><td>\n  <strong>1<\/strong>\n  <\/td><td>\n  Size\n  <\/td><td>\n  Small\n  companies&nbsp;\n  Other companies\n  <\/td><\/tr><tr><td>\n  <strong>2<\/strong>\n  <\/td><td>\n  Control\n  <\/td><td>\n  Holding\n  companies&nbsp;\n  Subsidiary\n  companies&nbsp;\n  Associate companies\n  <\/td><\/tr><tr><td>\n  <strong>3<\/strong>\n  <\/td><td>\n  Number of members\n  <\/td><td>\n  One person company&nbsp;\n  Private companies\n  Public companies\n  <\/td><\/tr><tr><td>\n  <strong>4<\/strong>\n  <\/td><td>\n  Access to capital\n  <\/td><td>\n  Listed\n  companies&nbsp;\n  Un-listed companies\n  <\/td><\/tr><tr><td>\n  <strong>5<\/strong>\n  <\/td><td>\n  Liability\n  <\/td><td>\n  Limited by Shares or by Guarantee&nbsp;\n  Unlimited\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/validate-the-company-registration-number\/\">How to validate the Company Registration Number?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Deep_Analysis_on_Types_of_Company_Registration\"><\/span>Deep Analysis on Types of Company Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Registering a company is the first and\nforemost process by which entrepreneurs incorporate their company. Since\ndifferent company types exist in India, the business owner has to make sure\nthat they choose the right type of business model that fits their operations.\nIn our country, the Companies Act, 2013 has underpinned some directions for\nvarious types of company registration. The section below discusses the\ndifferent business types in India.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Public Limited Company<\/h3>\n\n\n\n<p>A Public Limited Company is one whose\nshares can be traded in the public domain. In such a business type, there is no\nlimitation on the number of shares that can be traded or sold. Since the share\nof the public limited company is listed on the Stock Exchange, they can be\ntraded without any restriction, making the shareholders a part of the company. <\/p>\n\n\n\n<p>Such companies are required to acquire the registration certificate from the ROC before starting the business activities. Now to avail registration for such a business type, the <a href=\"https:\/\/corpbiz.io\/public-limited-company-registration\" title=\"Public Limited Company Registration\"><strong>public limited company<\/strong><\/a> is required to comply with the given conditions.&nbsp; &nbsp;<\/p>\n\n\n\n<ul>\n<li>Minimum of 3 directors are required to manage the public limited company.&nbsp;<\/li>\n\n\n\n<li>One of the three directors should be an Indian national.&nbsp;<\/li>\n\n\n\n<li>Minimum of 7 shareholders required to set up a publicly held organization.&nbsp;<\/li>\n\n\n\n<li>Moreover, an authorized capital fee amounting to at least INR 5 Lakhs<\/li>\n\n\n\n<li>Should have a registered office address in the Indian territory.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Private Limited Company<\/h3>\n\n\n\n<p>Private Limited Companies are best suited\nto those entities who wish to work like a privately held organization. The\nliability in a privately held company is not imposed on the specific member;\ninstead, it is distributed among the shareholders. This allows the members to\nsafeguard their assets against any losses that occur in the company. <\/p>\n\n\n\n<p>The total capital of a private limited\ncompany is equivalent to the total number of shares owned by each member. The\nbusiness and personal assets of the members are deemed separates, rendering\nbetter security &amp; protection. It is one of the most popular types of\ncompany registration available in the country right now. The shares of such a\ncompany cannot be exposed or transferred to the general public. The Companies Act,\n2013 has laid down the following criteria to set up a privately held\norganization;&nbsp;<\/p>\n\n\n\n<ul>\n<li>The minimum of 2 &amp; a maximum of 15 directors can exist in a private limited company.&nbsp;<\/li>\n\n\n\n<li>At least one of the directors should be an Indian national.&nbsp;<\/li>\n\n\n\n<li>Minimum of 2 and a maximum of 200 shareholders can exist in the private limited company.&nbsp;<\/li>\n\n\n\n<li>Additionally, an authorized capital fee amounting to at least INR 1 Lakh<\/li>\n\n\n\n<li>Must have a registered place of business in the country.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Private_Companies\"><\/span>Types of Private Companies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>There are different types of Private Companies, which are as follows:-<\/strong><\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Limited by Shares<\/h3>\n\n\n\n<p>In such type of companies, the liability of\nthe shareholders is limited to the extent of their shareholding capacity.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Limited by Guarantee<\/h3>\n\n\n\n<p>In this case, the liability of the\nshareholders would be equivalent to their contribution which they promised to\nmake if the company goes bankrupt.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Unlimited<\/h3>\n\n\n\n<p>In such a business type, the liability of\nthe member is unlimited i.e. not subjected to any limitation whatsoever. This\nmeans, in case of any financial crisis, the member has to compensate for the\nloss with their private assets.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Partnerships<\/h3>\n\n\n\n<p>The Partnerships is other popular types of company registration in India. In such business type, the partners are accountable for handling the day to day operations as per the writ contract. Henceforth, the roles, duties, functions, and number of shares are enclosed in the partnership deed. Such businesses work under the canopy of the Indian Partnership Act, 1932. Partnership companies can operate without a license provided they possess a valid &amp; registered partnership deed. To be eligible for such a business type, the partnership firm should comply with the given conditions:&nbsp;<\/p>\n\n\n\n<ul>\n<li>Partnership firm can contain a\nminimum of 2 and a maximum of 10 partners.&nbsp;<\/li>\n\n\n\n<li>They must have an authorized\noffice address in the Indian territory.&nbsp;<\/li>\n\n\n\n<li>The partnership deed must be\nsigned by all the involved partners,<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Limited Liability Partnership<\/h3>\n\n\n\n<p><a href=\"https:\/\/corpbiz.io\/llp-registration\" title=\"LLP registration\"><strong>Limited liability Partnership<\/strong><\/a> is also known as LLP, is the new types of company registration in India. Furthermore, it holds the independent legal identity, helping differentiate between business &amp; personal assets, and conferring the entrepreneurs limited liability protection. <\/p>\n\n\n\n<p>In LLP based company, the liability of every partner is depending on the number of share capital, ensuring more security than a <a href=\"https:\/\/corpbiz.io\/sole-proprietorship-registration\" title=\"Sole Proprietorship Registration\"><strong>Sole Proprietorship<\/strong><\/a>. Now, to acquire the registration for such business type, the LLP should comply with the given conditions:&nbsp;<\/p>\n\n\n\n<ul>\n<li>Must have a minimum share\ncapital of one lakh rupees.&nbsp;<\/li>\n\n\n\n<li>At least one of the partners\nshould be an Indian national.&nbsp;<\/li>\n\n\n\n<li>A minimum of two partners are\nrequired to set up such a business type. There is no cap on the maximum limit.<\/li>\n\n\n\n<li>At least one partner should be\nan individual if the remaining partners are corporate bodies.&nbsp;<\/li>\n\n\n\n<li>No limitation of the\nprocurement of share capital.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">One Person Company<\/h3>\n\n\n\n<p>One person company model is best suited to small entities. Since this business type is a part of the <em><strong>Companies Act 2013<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>, it empowers the business owners who intend to carry out the business activities single-handedly. <a href=\"https:\/\/corpbiz.io\/one-person-company\" title=\"One Person Company Registration\"><strong>One Person Company<\/strong><\/a> has an independent legal status and it allows it to have full control over the business activities, assets, and liability. To avail registration of such a business type, the OPC should meet the given conditions without exception:-<\/p>\n\n\n\n<ul>\n<li>Must have a minimum share\ncapital of one lakh rupees.<\/li>\n\n\n\n<li>The business owner should be an\nIndian.&nbsp;<\/li>\n\n\n\n<li>Appointment of the nominee by\nthe promoters is mandatory for the incorporation.&nbsp;<\/li>\n\n\n\n<li>One person company model is not\navailable to the institution engaged in financial lending.&nbsp;<\/li>\n\n\n\n<li>In case if the paid-up capital\nexceeds INR 50 lakhs and the annual turnover is more than two crores then the\nentity should convert to a privately held organization.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Section 8 Company<\/h3>\n\n\n\n<p>Section 8 company is popularly regarded as a Non-Profit Organization. Section 8 companies mainly work toward human welfares. Profit granted to such companies cannot be used for personal benefits; instead, it is used to achieve the organizational goals. To become eligible for this type of business model, the <a href=\"https:\/\/corpbiz.io\/section-8-company-registration\" title=\"Section 8 Company Registration\"><strong>Section-8 company<\/strong><\/a> should comply with the given conditions;&nbsp;<\/p>\n\n\n\n<ul>\n<li>Minimum of 2 shareholders.<\/li>\n\n\n\n<li>Minimum two directors are\nrequired to set Section 8 Company.&nbsp;<\/li>\n\n\n\n<li>At least of the directors\nshould be an Indian national.&nbsp;<\/li>\n\n\n\n<li>No limitation imposed on the capital\nrequirement.<\/li>\n\n\n\n<li>Company should have a\nregistered business address in the country.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Sole Proprietorship<\/h3>\n\n\n\n<p>This is perhaps the most popular business\nmodel in India as it allows individuals to run their businesses independently.\nHowever, in such a business model, the owner and the company are treated as a\nsingle entity, making them solely accountable for profit as well as losses. <\/p>\n\n\n\n<p>Furthermore, since the registration carries\nthe owner\u2019s name, accounting reports and tax filings will also carry the\nowner\u2019s name, which eventually leads to unlimited liability. Consequently, Sole\nproprietorship does not have an independent business registration\nprocess.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The growth and prosperity of your investment\nwill be depend on what types of company registration you choose. Selecting the\nright business model alsoensure the prolong existence in the given market. One\nmust be aware of the ups and downs of every business model before selecting\nthem. <\/p>\n\n\n\n<p>Apart from profit and loss, there are other factors as well which contributed towards the selection of a business model. As per the latest trend, private company registration and sole proprietorship stand out among them all due to their countless benefits.In case if you need some help regarding registration procedures or paperwork, we are here to help you out. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/how-to-avail-a-company-registration-certificate\/\">How to Avail a Company Registration Certificate?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The organization structure is one of those important factors that determine what type of tax one has to pay or compliances one has to follow. Henceforth, one of the most crucial decisions business owners can make is determining what type of business registration is best for them. Furthermore, our legal framework empowers different types of [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":19943,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[1236],"acf":{"service_id":"1"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":4197,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19925"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=19925"}],"version-history":[{"count":10,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19925\/revisions"}],"predecessor-version":[{"id":69048,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19925\/revisions\/69048"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/19943"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=19925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=19925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=19925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}