How to create a Company in India| Complete Details
To start a company in India! Here's a step-by-step guide to help you:
*Company Types:*
1. Private Limited Company (PLC)
2. Public Limited Company (PLC)
3. One Person Company (OPC)
4. Limited Liability Partnership (LLP)
5. Partnership Firm
6. Sole Proprietorship
7. Joint Venture (JV)
8. Cooperative Society
9. Non-Profit Organization (NPO)
Others :-
1. Section 8 Company
2. Government Company
3. Holding Company
4. Subsidiary Company
5. Joint Stock Company
Company Classification by Size:
1. Micro :- Turnover < ₹5 crores
2. Small :- Turnover ₹5-50 crores
3. Medium :- Turnover ₹50-250 crores
4. Large :- Turnover > ₹250 crores
Company Classification by Ownership:
1. Family-owned
2. Publicly traded
3. Private equity-owned
4. Government-owned
Each type has its advantages, disadvantages, and regulatory requirements.
*Requirements:*
1. Unique company name
2. Memorandum of Association (MoA)
3. Articles of Association (AoA)
4. Registered office address
5. Directors/Partners (at least 2 for PLC, 1 for OPC)
6. Share capital (minimum ₹1 lakh for PLC, ₹10,000 for OPC)
7. PAN (Permanent Account Number)
8. TAN (Tax Deduction and Collection Account Number)
9. GST registration (if applicable)
*Registration Process:*
1. Obtain Director Identification Number (DIN) for directors
2. Reserve company name through MCA (Ministry of Corporate Affairs) portal
3. File MoA and AoA with MCA
4. Obtain Certificate of Incorporation
5. Apply for PAN and TAN
6. Open a current bank account
7. Obtain GST registration (if applicable)
*Documents Required:*
1. ID proof (Aadhaar, Passport, etc.)
2. Address proof (Utility bills, etc.)
3. Passport-sized photographs
4. Proof of registered office address
5. Memorandum and Articles of Association
6. Board resolution for authorization
*Government Fees:*
1. Company registration: ₹2,000 - ₹10,000
2. DIN registration: ₹500 - ₹1,000
3. PAN and TAN registration: ₹100 - ₹500
*Professional Assistance:*
Consider hiring:
1. Chartered Accountant (CA)
2. Company Secretary (CS)
3. Lawyer
*Timeline:*
1. Name reservation: 1-2 days
2. DIN registration: 1-2 days
3. Company registration: 7-15 days
4. PAN and TAN registration: 3-7 days
*Post-Incorporation Compliance:*
1. Annual returns filing
2. Financial statements filing
3. Tax compliance
4. Statutory audits
*Resources:*
1. MCA portal (mca.gov.in)
2. Income Tax Department (incometaxindia.gov.in)
3. GST portal (gst.gov.in)
4. Reserve Bank of India (rbi.org.in)
Starting a company in India requires careful planning and compliance with regulations. Seek professional advice to ensure a smooth process.
Below ⬇ are the details of types of companies :-
1. Private Limited Company (PLC)
- Minimum 2 directors, maximum 200 shareholders.
- Limited liability for shareholders.
- Shares cannot be publicly traded.
- Minimum paid-up capital: ₹1 lakh.
- Suitable for small to medium-sized businesses.
2. Public Limited Company (PLC)
- Minimum 7 directors, no maximum limit on shareholders.
- Limited liability for shareholders.
- Shares can be publicly traded.
- Minimum paid-up capital: ₹5 lakhs.
- Suitable for large businesses, IPOs.
3. One Person Company (OPC)
- Single director/shareholder.
- Limited liability.
- Suitable for solo entrepreneurs, small businesses.
- Minimum paid-up capital: ₹10,000.
4. Limited Liability Partnership (LLP)
- Minimum 2 partners.
- Limited liability for partners.
- Flexible management structure.
- Suitable for professional services, startups.
5. Partnership Firm
- Minimum 2 partners.
- Unlimited liability for partners.
- Suitable for small businesses, joint ventures.
6. Sole Proprietorship
- Single owner.
- Unlimited liability.
- Suitable for small businesses, individual entrepreneurs.
7. Joint Venture (JV)
- Temporary partnership between two or more companies.
- Shared ownership, control, and profits.
- Suitable for specific projects, collaborations.
8. Cooperative Society
- Member-owned, member-controlled.
- Objective: provide services to members.
- Suitable for community-based initiatives.
9. Non-Profit Organization (NPO)
- Objective: social welfare, charity.
- No profit distribution to members.
- Suitable for NGOs, charities.
Other Types:
1. Section 8 Company :
Non-profit, charitable organizations.
2. Government Company :
Owned, controlled by government.
3. Holding Company :
Owns majority stake in other companies.
4. Subsidiary Company :
Owned, controlled by another company.
5. Joint Stock Company :
Public or private company with share capital.