What is company?

• A company is a body corporate or an incorporated business organization registered under the companies act.
• In terms of the Companies Act, 2013 a “company” means a company incorporated under this Act or under any previous company law {Sec 2(68) of Companies Act, 2013}.
• In common law, a company is a “legal person” or “legal entity” separate from, and capable of surviving beyond the lives of its members.
• PERPETUAL SUCCESSION: An incorporated company never dies, except when it is wound up as per law.

What is types of company?

There are different types of company. Some are given below:

1. One Person Company
2. Private Limited Company
3. Public Limited Company
4. Section 8 Company

One Person Company (OPC):

• One person company (OPC) means a company formed with only one person as a member.
• The member can also be the company’s director.
• It can have maximum 15 directors.
• Any natural person except minor who is an Indian citizen whether a resident in India or not i.e. NRI shall be eligible to incorporate a One Person Company and appoint nominee of an OPC.
• Benefits of OPC:
  • It has separate legal entity.
  • The liability of shareholder or director is limited.
  •  It gives suppliers and customers a sense of confidence in business.
  • The director and shareholder can be same person.
  •  On the death/disability company can be succeed by nominee.
  • Various provisions under Company law are exempted.
• Mandatory Compliances for OPC:
  • At least hold two board meeting in a calendar year
  • Statutory Audit
  • Maintain books of accounts
  • RoC Compliance
  • Filing income tax return
  • KYC of director every year

Private Limited Company:

• A Private Limited Company is a type of business that is owned and operated by a small group of people.
• Private limited companies may issue stock and have shareholders, but their shares do not trade on public exchanges and are not issued through an IPO.
• Minimum two directors and two shareholders are required to form.
• It can have maximum fifteen directors and two hundred members.
• Private Limited Company can be of three types:

1. company limited by shares,
2. a company limited by guarantee, and
3. Unlimited company.

• Benefits of Private Limited Company:

  • It has separate legal entity.
  • The liability of shareholder or director is limited.
  •  It gives suppliers and customers a sense of confidence in business.
  • A private limited company can own any type of movable or immovable property.
  • The director and shareholder can be same person and different person.
• Mandatory Compliances for Private Limited Company:
  • Statutory Audit
  • Maintain books of accounts
  • RoC Compliance
  • Filing income tax return
  • KYC of director every year
  • hold board meeting in a financial year

Public Limited Company:

• Public limited company means a company where the general public can hold the company shares.
• Its share can be acquired by anyone, either privately through initial public offering (IPO) or via trades on the stock market.
• Public Limited Company is best suitable for entrepreneur who is planning for large level business operations.
• Minimum three directors and seven shareholders are required to form.
• Minimum share capital Rs 5 lakhs is required.
• Benefits of Public Limited Company:
  • It has separate legal entity.
  • The liability of shareholder is limited.
  •  It gives suppliers and customers a sense of confidence in business.
  • Easy transferable of shares.
  •  It is best for growth opportunity.
  • It is controlled by board of directors and board of directors is elected by shareholders.
• Mandatory Compliances for Public Limited Company:
  • Statutory Audit
  • Maintain books of accounts
  • RoC Compliance
  • Filing income tax return
  • KYC of director every year
  • At least holds four board meeting
  • Hold AGM
  • Any other compliances like SEBI, RBI, FEMA etc.

Section 8 Company:

• An association of persons or individuals can register a company under section 8 of the Companies Act for charitable purposes.
• Section 8 company is one of the most popular forms of Non- Profit Organizations in India.
• Section 8 company are established to promote commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object,”
• Minimum two directors and two members are required to form.
• It is mandatory for section 8 company or NGO to use the works “Foundation, Association, Federation, Forum, Chambers, Council, Confederation, Electoral Trust etc.
• Benefits of Section 8 Company:
  • It has separate legal entity.
  • It cannot distribute its profit or assets to its member.
  • Minimum paid-up capital requirement is exempted by CG and it can start company with nominal capital.
  • It is exempted to pay stamp duty at time of incorporation
• Mandatory Compliances for Section 8 Company:
  • Statutory Audit
  • Maintain books of accounts
  • RoC Compliance
  • Filing income tax return
  • KYC of director every year

Documents reqquired for Company Registration:

• PAN and Aadhar card of members/directors
• Photo of members/directors
• Resident proof (Bank Statement latest for 2 months/Telephone bill/Electricity Bill latest)
• Address Proof ( Aadhar Card/Driving License/Votor Card)
• Electricity bill for registered office
• NOC from owner of registered office