What is a company ?

A company is a separate legal entity, representing an association of Persons, whether natural, legal, artificial or a mixture of all, come together to achieve a specific common objective.

Following are some main types of companies  :-
1. Private Limited Company.
2. Public Limited company.
3. Sec-8 Company (Non Profit).
4. One Person company.

What is Private Limited Company ?

A Private limited company is a company incorporated under Companies Act 2013 or any other previous company law & which is not a public company.

The private limited company has the following features :-

• Minimum 2 and Maximum 200 members. (Except OPC)
• Transfer of share is restricted.
• Restriction on any invitation to the public for subscription of any security of company.

Advantages of Company incorporation?

1. Corporate Personality : An incorporated company is a legally recognized entity, it is an artificial juridical person, it has  own legal status name & identity.

2. Limited Liability : According to “The Companies Act 2013” it is provides that, in event of companies wounding up, every members of the company are solely liable to contribute to the assets and liabilities of the company none of its members is legally bound to contribute to anything more than the nominal value of shares held by the member which still remain unpaid.
3. Perpetual Succession : it is most important characteristic of the company that the death or insolvency of individual members will not affect the status of the incorporated company in any way or form. The company will continue to exist indefinitely till the company is shut down.
4. Transferable Shares : It is law that the shares or other interest of any member in a company shall be always movable property, transferable in the manner provided by the articles of association (AOA) of the company.
5. Separate Property : A company is recognized as separate legal entity means a company can hold Property under it name & can claim ownership also. Further, the company can sign a contract like a natural person.
6. Capacity to Sue : Because of the concept of separate legal entity an incorporated company has the right to sue other people vise-a-versa it can be sued by other companies and people like a natural person.

Documents Require for company Incorporation ?

Promoter’s KYC Details

• Passport size Photo.
• Pan card.
• Aadhar Card.
• Mobile number.
• Email id.

Business Details

• Company proposed Name.
• Company’s official Address.
• Electricity Bill + Rent Agreement.
• Business activity.

Procedure of Company incorporation in India ?

• Obtaining Director Identification Number (DIN) and Digital Signature.
• Name reservation of Company.
• Drafting of MOA+AOA+Spice-e Form.
• Filling of Application.
• Query raise (not in Every cases).
• Reply of Query / Resubmission.
• Approval by company Registrar.

Other Registrations require by a company ?

1. Goods & Services Tax (GST).

It is Mandatory for businesses to register in GST as regular taxable persons if their annual turnover exceeds the threshold limit of Rs. 40 lakhs ( For Goods) or Rs. 20 lakhs ( For Services), or Rs. 10 lakhs, as applicable for some special cases.

For above mentioned businesses it is mandatory to generate the GSTIN. If the company conducts business activities without registering for GST, it is an offence and the business will face severe penalties. Read more

2. MSME / UDYAM Registration.

MSME/Udyam certification is a system for enrolling Micro, Small, and Medium Enterprises (MSMEs), introduced by the Ministry of Micro, Small & Medium Enterprises on 1st of July 2020. Further, the Ministry revises the MSME classification criteria from time to time. Under this system, After successful registration and generation of certificate every company allotted with a 16 digit alphanumeric Number (UDYAM-XX-00-0000000).Read more

3. FSSAI Food License.

Food license is a document issued by the Food Safety & Standards Authority of India to all kind of Food Business Operators (FBO) i.e Food Manufacturers, Traders, Restaurant / Hotel Owners, Kirana / fast food Shops, Pan Masala,  Nutritional products,  Importers/ Exporters etc.

It is a 14-digit unique license number , which has to be quoted on all food packages, Sign Boards, cash counters and Invoices. The License / Registration number is also required even if food products are not packaged or to be use further as raw material. Read more

private companies engaged in a business related to food need to register in FSSAI

4. Shop & Establishment

In India every state has it own Shop and Establishment Act to regulates the shops and commercial establishments operating within the state.The shops and commercial establishments must be mandatorily apply for registration under your respective state Act. All establishments and business, including the people working and maintaining a business from home (i.e cloud kitchen, hanadcrafts), must obtain a Shop and Establishment Registration Certificate or Shop License (“Certificate”) under the Act. Read more

5. Income Tax Filling

A Registered company having a valid pan need to register under Income tax law through Income tax website & pay the Appropriate tax.

6. Importer-Exporter Code (IEC)
IEC stands for Importer-Exporter Code. Allotment of Importer Exporter Code IEC is mandatory for Enterprises engaged in Import and export activities. Failing to obtain IEC can result in penalties or even legal consequences. It is legal proof for business’s having international trade operations. Read more

Registration of IEC is required for Export from India as well as Import in India.

7. Bank Current Account
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