For a Business

How to register a Partnership firm in India?

Partnership firm registration is required when two or more parties sign a formal agreement to manage and operate a business and share both the profits and losses.

Registering a Partnership is the right choice for small enterprises as the formation is straightforward and there are minimal regulatory compliances.

The Partnership Act has been in existence in India since 1932, making partnerships one of the oldest types of business entities in India. A partnership firm can even be registered after it is formed. There are as such no penalties for non Registration of a Partnership firm. But unregistered Partnership firms are denied certain rights under section 69 of the Partnership Act that majorly deals with the effects of non Registration of Partnership firms.

What documents are required to register a Partnership Firm In India?

The application for the Partnership registration form must include the prescribed documents like the Identity proof, address proof, a real copy of the Partnership deed entered into and the proof of the Principal place of business.

Any of the following documents can be submitted as identity proof and address proofs.

1. PAN card

2. Passport

3. Driver License

4. Aadhar Card

5. Voters ID

Proof of Business premise can be established by submitting the following documents:

1. Sale Deed in case if the Partner owns the place

2. Rental agreement copy if the office is on rental basis

3. Copy of the latest electricity bill or the tax bill receipt

What is a sole proprietorship?

Proprietorship in India is a type of unregistered business entity that is owned, managed, and controlled by one person. The micro and small businesses that are operating in the unorganized sector prefer registering as a proprietorship in India. It is very easy to start a sole proprietorship in India as it has very few regulatory compliances for conducting businesses. Proprietorship registration is ideal for the entrepreneurs who are getting into the business for small businesses with very few clients. The liability of the sole proprietorships is limited and they also do not have perpetual existence.

Who is a sole proprietor?

A sole proprietor is the owner of the sole proprietorship, he is recognized as an entity same as the business. As the sole proprietor is the owner of the business he is entitled to all the company's revenue. The sole proprietorship is completely under the control of the proprietor. Hence, he makes the decisions for the company.

To run a business as a sole proprietor some licenses and permits are required. The license will depend on the industry, state, and locality.

What is OPC registration?

One Person Company in India is a new concept that has been introduced with the Company's Act 2013. One Person Company in India is incorporated by a single person. Before the enforcement of the Companies Act 2013 a single person was not able to establish a company. An OPC has features of a Company and the benefits of the sole proprietorship. Earlier if a person had to establish a business then he or she should only opt for a sole proprietorship.

According to Section 2 (62) of the Company's Act 2013, a company can be formed with just 1 director and 1 member. One Person Company registration in India is a type of entity where there are lesser compliances requirements than that of a Private Limited Company.

A One Person Company Registration in India can be obtained under the Companies Act 2013 with just one single member and one Director. The Director and member can also be the same person. Here an individual who may be a resident or Non-resident Indian can register an OPC in India.

LLP Registration in India

LLP Registration in India has become an alternative form of business that provides the advantages of a Company and the flexibility of a Partnership firm into a single organization. The Concept of LLP in India was introduced back in 2008 by the Limited Liability Partnership Act of 2008. This unique hybrid is suitable for setting small, medium-sized businesses.

It is very easy to manage and incorporate a Limited Liability Partnership in India. To register an LLP minimum of two partners are required, there is no upper limit as such. The LLP agreement states the rights and the duties of the Partners. In an LLP one partner is not responsible for the misconduct and negligence of the other partner. The partners are responsible for the compliances and all the provisions that are specified in the LLP agreement.

Private Limited Company Registration in India

A private limited company in India is governed under the Ministry of corporate affairs (MCA). Registering a company is easy through LEGALRAASTA ASSOCIATES, as it is done completely online. To register a company in India a minimum of two people are required to act as directors and shareholders. To register a Private limited company in India the Director's PAN card, address proof, and the bank statement are required with the address proof of the registered office.

Section 2 (68) of the Companies Act, 2013 defines a private company as:

A company having a minimum paid-up share capital as may be prescribed, and which by its articles,

• i). restricts the right to transfer its shares;
• ii). except in case of One Person Company, limits the number of its members to two hundred;
• iii). prohibits any invitation to the public to subscribe to any securities of the company.

It is highly recommendable to get a private limited company registration as this type of company offers limited liability to the shareholders with certain restrictions that are placed on the ownership.

Private Limited Company is the most popular type of business entity in India. Over 20 lakh companies have been registered in India as of October 2020 and 12 lakh companies are classified as active. All companies registered in India are governed by the MCA (Ministry of Corporate Affairs) under the Companies Act, 2013.

Requirements to register a Private Limited Company in India

• No of Shareholders:- 2 individuals
• No of Directors:- 2 individuals ( Can be 3)
• Authorized Capital:- Rs. 1 lakh minimum
• Paid-up capital:- Rs. 10,000

NOTE: This is just a primary requirement the no of directors can be increased to 15 and the number of shareholders can be increased to 200.

What is Udyam Registration?

Udyam Registration in India or MSME Registration or SSI registration is a certificate that is provided to micro, small, and medium-sized businesses in India under the MSME Act, 2006. Udyam registration in India was earlier known as MSME registration. The primary objectives of the Micro, Small and Medium enterprises concerning the Udyam registration is as follows:

• To enable the Micro, Small and Medium enterprises on a large scale to effectively tackle the widespread problems of unemployment and poverty;
• To extend the benefits of various government schemes at one stop to the SSI units;
• To safeguard the SSI from financial harassment in the hands of the big industries.

What is Nidhi Company and how it works?

Nidhi Companies belong to the Non-banking financial companies structure.

Registering a Nidhi Company allows a Nidhi to borrow from its members and lend to the members.

Nidhi Companies are registered in India are created to cultivate the habit of thrift and savings among its members. The funds that are contributed to a Nidhi Company are only from its members.

For Incorporating a Nidhi Company, no license is required from the Reserve Bank of India. Hence, the formation of the Nidhi Company is easy. Nidhi Companies are registered as Public Companies and should have Nidhi Limited at the last of the name.

It should also be noted that the Nidhi Companies fall under the purview of the Reserve Bank of India as the functioning of Nidhi Companies is similar to NBFCs.