Incorporation

Private Limited Company

A private limited company is a non-governmental organization, owned by several shareholders. Such type of a business entity limits the owner responsibility to their holdings, the number of shareholders to 200 and restricts the shareholders from any kind of public trading of their shares. According to Section 2 (68) of the Companies Act, 2013 defines an “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 for any securities of the company.

Documents required-

  1. Pan card and Aadhar card of all directors.
  2. Electricity bill /rent agreement for address proof.
  3. Bank statement of both directors.
  4. DSC and DIN for both the directors.
  5. Passport size photos of both the directors.
  6. Phone numbers and mail id of all directors.

One Person Company

One Person Company is incorporated by a single person. As per Section 2 (62) of the Company’s Act 2013, a company can be formed by a single Director and a single member. The compliance requirements in such companies are lesser than that of private companies. The Act provides that any individual can form a company with just a single member and a director. They can be the same person. Thus, a one-person company means that one individual who might be a resident or NRI can incorporate her/his business.

Documents required-

  1. Pan card and Aadhar card of the director.
  2. Electricity bill /rent agreement for address proof.
  3. Bank statement of the director.
  4. DSC and DIN for the director.
  5. Passport size photos of the director.
  6. Phone numbers and mail id of the director.

Public Company

A public company is a corporation where the ownership of the company is dispensed off to the general shareholders through a free trade of stock at markets. Such companies are traded openly within an open market, where various investors buy shares. In most cases, initial private companies become public companies to raise capital after complying with all the regulatory norms.

Documents required-

  1. Pan card and Aadhar card of the director.
  2. Electricity bill /rent agreement for address proof.
  3. Bank statement of the director.
  4. DSC and DIN for the director.
  5. Passport size photos of the director.
  6. Phone numbers and mail id of the director.

Partnership

A Partnership is where two or more people come together to formulate a business and divide the profits in an agreed-upon ratio.

Documents required-

  1. Pan card and Aadhar card of the director.
  2. Electricity bill /rent agreement for address proof.
  3. Bank statement of the director.
  4. DSC and DIN for the director.
  5. Passport size photos of the director.
  6. Phone numbers and mail id of the director.

Limited Liability Partnership

A Limited Liability Partnership (LLP), introduced in 2008. An LLP is a blend of both the partnership firm and company. A minimum of two partners are required to incorporate an LLP. However, there is no maximum number of partners in an LLP. One out of the minimum two partners should be a resident of India. The rights and duties of the partners are formulated by the LLP agreement.

Documents required-

  1. Pan card and Aadhar card of all directors.
  2. Electricity bill /rent agreement for address proof.
  3. Bank statement of all directors.
  4. DSC and DIN for all the directors.
  5. Passport size photos of all the directors.
  6. Phone numbers and mail id of all directors.

Section 8

A Section 8 Company identifies as a Non-Profit organization (NPO). The objective of such a company is to promote trade, arts, commerce, social welfare, charity etc. To start a Section 8 company, a minimum of two directors is required, although, there is no requirement of a minimum paid-up capital. In India, a non-profit organization can be registered under the Registrar of societies.

Documents required- 

  1. Pan card and Aadhar card of all directors.
  2. Electricity bill /rent agreement for address proof.
  3. Bank statement of all directors.
  4. DSC and DIN for all the directors.
  5. Passport size photos of all the directors.
  6. Phone numbers and mail id of all directors.

Nidhi Company

Nidhi Company is a non-banking financial company (NBFC) whose objective is to borrow and lend money to its members. Nidhi Companies typically operate without a license from the Reserve Bank of India, hence it is very easy to form. It is registered as a public company, however, it should have “Nidhi Limited” as the last words in its name. The profits of this company are applied towards promoting the objectives of the company.

Documents required-