What is Firm Registration ?

Incorporation means the formation of a new company. The corporation may include a company, a business, a start-up, a non-profit organization, a micro, small or medium enterprise. MCA governs the corporate affairs in India under the Companies Act. 1956, 2013 and other related Acts, Rules, and Bills. MCA also offers many services to the company owners.

The Ministry is mostly concerned with the regulation of Companies Act,2013. It is also involved in the Companies Act, 1956, and Limited liability Act, 2008. A public limited company is a separate legal body. This type of company has limited liabilities and shares them openly. A public limited company has no restrictions for the number of shareholders and ower to transfer shares-the shares of a public company are freely transferable. a public limited company can transfer shares to public and raising funds from the public.

Process of Firm Registration

Sole Proprietorship

Are you planning to start a small business in unorganized or local format? Are you looking for cheaper option as compared to One Person Company? Relax ! Sole Proprietorship is only answer to all these questions. It is the type of business which allows a single person to own, operate and control entire business. It is best suitable to small traders and merchants as benefits like limited liability, continuous existence etc. do not apply to them. But registering a sole proprietorship carries full risk of business liability to owner, as it is not considered as separate entity and thus proprietor is liable for everything including his personal assets too. Thus it is great option for entrepreneurs to register as sole proprietorship, grow your business to the fullest and then transfer your registration to any other form like Public Limited or Private Limited to avoid risks of liability. Benefits are easy taxation, no compliance, easy and fast registration, no minimum capital required. But unorganized and no continued existence can close on death of owner.

Partnership Firm

Are you the group of entrepreneurs with same business vision and willing to undertake business jointly ??? Are you looking for legal solution suiting perfectly to all your partners ??? Partnership firm is a simplest legal solution to kick start your business and grow it possibly. With only 2 to maximum 20 members, entrepreneurs can easily start their business by registering it with the Registrar of Partnership Firms with very less paperwork. Partnership firm is not registered under the MCA like the Pvt Ltd, LLP or OPC. Partnership firm is not considered as a separate entity and thus all partners are held responsible for all business liabilities. No transfer of liabilities or assets to nominees is allowed in partnership firm on expiry or non-existence of any partner. Only in state of Maharashtra, registration of partnership firm through online channel is mandatory, same rule is not applicable to other states. Partnership firm is most popular form of group business structure due to minimal compliance, no capital requirement and less paperwork involved in its formation.

DOCUMENTS REQUIRED FOR Firm REGISTRATION

Given below is the extensive list of documents needed at the time of company registration:

Identity Proof of the Promoters/Directors/Shareholders.
Address Proof of the Promoters/Directors/Shareholders.
Registered Office Proof- rent deed/sale deed/ property tax receipt/ electricity bill, etc.
Other documents related to incorporation of the company.
The minimum share capital of Rs. 5 lakhs is required.
Minimum of 3 directors is required to form a public limited company.
Minimum 7 shareholders are required to form a public limited company.
Digital signature certificate (DSC) of one of the directors is needed while submitting self-attested copies of identity and address proof
Directors of the proposed company will need a DIN(Director Identification Number ).
An application is required to be made for the selection of the name of the company.
Payment of the prescribed registration fees to the ROC(Registrar of Companies )is required.
An application comprising the main object clause of the company is to be made. This object clause will define what a company will pursue after its incorporation
Submission of the application to ROC (Registrar of Companies ) along with the required documents like MOA (Memorandum of Association), AOA(Articles of Association), duly filled Form DIR – 12, Form INC – 7 and Form INC – 22 is needed
After obtaining approval from the ROC(Registrar of Companies ), the company should apply for the certificate of business commencement

ADVANTAGES OF FIRM REGISTRATION

Unlimited Members

One of the best advantages of a public ltd company is that there is no limit on the number of members in the company. The public limited company is a separate legal entity, and each shareholder is a part of it.

Limited Liability

Despite having a characteristic of unlimited members the liability of all the directors in Public limited company is limited to the extent of stake they hold in the company each member is the investor.

More Transparency

Working of a public limited company is more transparent because it separates its management from its ownership and A public limited company has many advantages over Private Limited Company.

Property Rights

A Public Limited Company can gain, posses, and enjoy its property in its own name. No shareholder can claim upon the property. preemptive rights to newly issued shares. and No requirement minimum capital.

Firm Registration