For any company to work legally in India, it has to register itself. It helps to meet set targets and operate efficiently.
Why Is It Necessary To Have A Proper Business Structure?
A proper business structure is necessary for two essential factors:
Filing income tax returns
Compliances to be adhered to
There are four business structures in India:
- OPC (One Person Company)
Introduced in 2013, OPC denotes a single individual as the sole owner of the firm. This structure is best for companies which have single ownership.
- LLP (Limited Liability Partnership)
It is for companies with more than one owner. As there are partners, there is less liability they would have to face individually.
- PLC (Public Limited Company)
It is like the LLP. The members face liability only according to as many shares as they hold. An association of members chosen voluntarily forms PLC.
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- PLC (Private Limited Company)
PLC is an entirely separate entity from its creator. It is the most common type of structure- with directors and shareholders.
How To Select The Right Business Structure?
Before selecting a business structure, there are a few points one must go through.
- Choosing a business structure depends on the type of business. If an individual makes all investments for the company and solely faces all consequences, an OPC is preferred.
- An LLP or PLC is for businesses run by more than one owner on partnership. It is the most common type of business structure. The profit and loss are all equally distributed.
- If one has a restricted budget or does not want to make a substantial initial investment, they should opt for the LLP or PLC structures. In the said structures, in case of a default of loans, a partner needs to pay only according to the amount invested.
How to Register?
According to steps taken by the Ministry of Corporate Affairs, any new Indian company or startup can register itself online. It is quick & easy because of regular updates which are entirely error-free.
- You will need a Digital Signature Certificate (DSC). For this, you can apply through companies like Verasys Technologies Private Limited. Verasys provides paperless DSCs with minimum layover time and quick service.
- You will also need a Director Identification Number (DIN)
- Fill the New User Registration form correctly. Be very sure of the details you’re filling in. Do it precisely and accurately.
- Submit the New User Registration form.
These are all the steps necessary to register for your business online. It is quick and easy and can be done by anyone.
As mentioned above, Verasys Technologies Private Limited is a company who is an expert in registration. The services they offer are paperless DSCs, Bulk PDF Signer and design services. So, if you need to register for your company or startup, get a consultation from them. It can all be done online from the comfort of your own home!