Registration of foreign companies in India is a simple, fast and easy process. Guidelines for the formation of a foreign company in India are regulate by the Companies (Registration of Foreign Companies) Rules, 201 by. Company registration in Coimbatore usually takes about three to ten working days. This article provides guidelines for new company registration in India.
If you are interested in doing business in India, you first need to establish your company’s legal presence in India by registering your business as a subsidiary of an Indian company or a foreign company. You also need to consider whether it is used for commercial purposes or otherwise. Under Section 4 (3) of the Companies Act, 2013, a foreign company is defined as a company or body corporate incorporated outside India, in which an agent from this country has a place of business.
How to register a new company?
To start a limited company registration in Coimbatore, local and foreign investors can enter many types of business forms. Most Indian companies are registered as a private limited company which is the most common method of starting a business.
How to register a company in India: Steps you need to follow
The Registrar of Companies (ROCs) is a department operating under the supervision of the Ministry of Corporate Affairs and all companies operating in India must register with them. In order to form a company in India, there are certain steps of company building that investors should follow. Once you have chosen a business form that suits your investment needs, then you should start choosing a trade name for the company, it should be unique. Your trading name should not be like any other company already in operation and should not respect the requirements imposed under the Prevention of Improper Use Act 1950. Next, you should prepare an application for the business name of the new company registration; it also includes a minimum of four and a maximum of six proposed trade names. Once all the legal documents of the company are ready, you need to file them on the ROC. Once the company has completed the first employment contract, you can proceed with the registration for Social Security.
Here are a few things you need to know: –
Director Identification Number (DIN)
Class II Digital Signature Certificate (DSC), obtained by a vendor licensed by the Ministry of Corporate Affairs (MCA). This presents the required director’s signature for various company documents (filed and registered with the ROC).
Legal documents of the company such as articles of association and memorandum of association which must be signed by the company secretary.
There are some fees, including stamp duty.
Once all of the above steps have been successfully completed, investors will receive a certificate of investment.
Types of institutions in India
Private Limited Company (PLC)
Private limited company registration in Coimbatore is a very suitable method to start a business in India. This commercial form has many advantages, one of which is its great flexibility. Keep in mind that investors will be able to change the ownership structure of the company. This can be done through the transfer of shares that require the consent of other shareholders. In India, PLC is governed by the Companies Act 201 and the Companies Incorporation Rules 201R. The company must be established by at least two shareholders and must be represent by a minimum of two and a maximum of fifteen directors. At least one of the directors must be an Indian citizen and the founders may be represent by natural persons or by legal entities established in India or abroad. Investors must also set a physical business address for new company registration.
One Person Company
This is another unique business form available in India. This is a hybrid legal entity, which shares the characteristics of a sole trader and a limited liability company. The Companies Act 2013 states that in an individual company, the company and the founder are separate legal entities. Although it is similar to LLC, it is recommended for registration only in the case of small businesses and cannot be converted into a company as stated under Section 8 of the Companies Act, 2013.
Public limited Company
The registration of a public limited company registration in Coimbatore is allowed by Indian law. This type of entity has similar characteristics with PLC. The only difference is that the shares offer by the public liability company can be given to the general public while the LLC cannot. This type of business entity can also accept foreign direct investments and must be set up by at least seven members. One good thing to note is that it is easy to transfer shares of the company and the members are responsible only to the extent of the share of capital in their company, unless the debt is caused by their own wrongdoings.
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Limited liability partnership:
Limited Liability Partnership (LLP) company registration in Coimbatore has become a preferred form of organization among entrepreneurs as it incorporates the benefits of both the partnership firm and the company into a single form of organization.
The concept of Limited Liability Partnership (LLP) was introduce in India in 2008. Partnerships in an LLP are characteristic of both the firm and the company. The Limited Liability Partnership Act, 2008 governs LLPs in India. At least two partners are require to include an LLP. However, there is no upper limit on the maximum number of LLP partners.
Among the partners, there should be at least two designate partners who should be individuals, and at least one of them should reside in India. The rights and duties of designate partners are govern by the LLP agreement. They are directly responsible for complying with all the provisions of the LLP Act, 2008 and the provisions of the LLP Agreement.
