Register a company in India can be done through Simplified Performa for Incorporating Company by electronic means (SPICe -INC-32), with eMoA (INC-33), eAOA (INC-34), is the default choice and most businesses are required to be registered through SPICe only. Any foreign company can establish its place of business in India by filing eForm FC-1 (Information to be filed by a foreign company)
Let’s try and know the types of business structures are available in India. Here is a list of certain types of them:
While deciding the type of company keep in mind that it will affect your Income Tax Returns. While registering your company, remember that each company has different stages of compliances that need to be met with. For instance, a sole proprietor has to file only an income tax return. However, a company has to file an income tax return as well as annual returns with the ROC. A company’s books of accounts are to be regularly audited every year. Enduring by these legal compliances needs spending money on auditors, accountants and tax filing experts.
Therefore, it is significant to choose the right business structure when thinking of company registration. An entrepreneur must have a clear idea of the kind of legal compliances he/she is willing to deal with. While some companies are comparatively investor-friendly than others, investors will always favor a recognized and legal company structure. For instance, an investor may hesitate to give money to a sole proprietor. If a good business idea is backed by acknowledged legal structure, the investors will be more contented investing.
Let’s take a look at some significant questions every businessperson must ask himself before he/she finally choose upon a company’s structure.
If you are a single person who possesses the complete initial investment mandatory for the business, a One Person Company would be ideal for you. If your company has two or more owners and is actively seeking investment from other parties a Limited Liability Partnership (LLP) or Private Limited Company would suit you finest.
If you want to spend a smaller amount initially, it would be prudent to go in for a Sole Proprietor, or a HUF or a Partnership. But, if you are certain that you will be able to recover the setup and compliance costs, you can opt for a One Person Company, LLP or a Private Limited Company.
Registering a company in India is now a simple and short 4-step procedure. Here is what you’ll need to obtain:
If you still need help registering your company, don’t stress over it, Contact ASC and let our team of experts guide you. All the basics of how to register a company can be guided by us and will help you set up your business in India.
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