• A Sole Proprietorship is a type of unregistered business entity that is owned managed and controlled by one person. Sole Proprietorship is the most common form of business in India, used by most micro and small businesses operating in the unorganised sectors. Proprietorships are very easy to start and have very minimal regulatory compliance requirements for starting and operating. So, its ideal for small businesses and first-time Entrepreneurs who would like to get a taste for business.

 Registrations for Proprietorship

• As the identity of a Sole Proprietorship is established through various other registrations and licenses, the following are some of the common registrations that are obtained for a Proprietorship.

• MSME Registration: MSME or Udyog Aadhaar registration can be obtained in the name of the business to establish that the Sole Proprietorship is registered under the Ministry of Micro, Small and Medium Enterprises.

• TAN Registration: TAN Registration must be obtained for the Proprietor from the Income Tax department if the Proprietor is making salary payments wherein TDS deduction is required.

• GST Registration: GST registration must be obtained if the Proprietor is selling goods or services that cross the GST turnover threshold limit for registration. In most states, GST registration is required for service providers having annual revenue of more than Rs.20 lakhs and in case of traders – annual revenue of more than Rs.40 lakhs.

• Import Export Code: Import Export Code or IE Code can be obtained from the DGFT in the name of the business – in case of a Proprietorship business undertaking export and/or import of goods into India.

• FSSAI Registration: In case the Proprietorship is involved in the selling of food products or handling of food products, FSSAI registration must be obtained from the Food Safety and Standard Authority of India in the name of the Proprietor.

• A Partnership firm is a business entity created by persons who have agreed to share profits or loss of the business. Partnerships are a very good choice of business entity for small enterprises where two or more persons decide to contribute to a business and share the profits or losses. In India, Partnerships are widely prevalent because of its ease of formation and minimal regulatory compliance.

• Documents Required for Registration of Partnership Firm

The application for registration of Partnership Firm must contain the prescribed registration form for incorporation of a company, identity proof/address proof of Partners, certified true copy of the Partnership deed entered into and proof of the principal place of business.

As identity and address proof of the Partners, any of the following two documents can be submitted:

• PAN Card

• Passport

• Driver’s License

• Aadhar Card

• Voters ID

Proof of the principal place of business can be established by submitting the following documents:

• Sale deed in case one of the Partners owns the place of business

• Rental agreement copy if the premises are rented

• Copy of latest electricity bill or water bill or property tax receipt

The concept of One Person Company in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single economic entity. One of the biggest advantages of a One Person Company (OPC) is that there can be only one member in an OPC . Similar to a Private Limited Company, a One Person Company is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder, while having continuity of business and being easy to incorporate.

Nominee in One Person Company

• The rules for incorporation of one person company requires that the sole member of a One Person Company should include the name of a nominee in the Companies MOA, who will undertake the entity after the expiry or incapacity of the former. Moreover, the document must contain the written consent of the nominee, which must also be filed with the Registrar during incorporation along with the MOA and AOA.

Documents Required

1. For the Director

• Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)

• Scanned copy of Voter’s ID/Passport/Driver’s License

• Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill

• Scanned passport-sized photograph

• Specimen signature (blank document with signature)

2. For the Registered Office

• Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill

• Scanned copy of Notarised Rental Agreement in English

• Scanned copy of No-objection Certificate from property owner

• Scanned copy of Sale Deed/Property Deed in English (in case of owned property)

            Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business entity that is simple to maintain while providing limited liability to the owners.

• LLP is one of the easiest types of business to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLPs are preferred by Professionals, Micro and Small businesses that are family-owned or closely-held. Since LLPs are not capable of issuing equity shares, LLP should NOT be chosen for any business that has plans for raising equity funds from Angel Investors, Venture Capitalist or Private Equity Funds.

Documents Required for LLP Incorporation

The following are the documents required for registration of LLP in India:

For the Partners

1. PAN Card or Passport for Foreigners.

1. Drivers license or Aadhar card, residence card or election identity card or any other identity proof issued by the Government.
2. Less than 3 months old bank statement or telephone bill.

Registered Office Proof

1. The authorization from the Landlord (Name mentioned in the Electricity Bill or Gas Bill or Water Bill or Property Tax Receipt or Sale Deed) to use the premises by the company as its registered office. This is usually referred to as NOC from Landlord; AND

1. Proof of evidence of any utility service like telephone, gas, electricity, etc. depicting the address of the premises in the name of the owner or document, which is not older than two months.

• Private Limited Company is the most prevalent and popular type of corporate legal entity in India. The Ministry of Corporate Affairs governs private limited company registration in India. Companies are incorporated and regulated under the Companies Act, 2013 and the Companies Incorporation Rules, 2014.

Eligibility and requirements

To register a private limited company, a minimum of two persons to act as Directors and shareholders are required. The shareholders of a private limited company can be a corporate entity or a natural person. Director can only be a living person with one Director being a resident and Indian Citizen. A person is designated as a resident if he/she spends over 186 days in India.

There are no restrictions on foreign companies or foreign nationals being Directors or shareholders of a private limited company. As, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and Shareholders of a Company with Foreign Direct Investment, incorporating a company is the preferred choice of entry to India for foreign promoters.

Documents Required for Company Registration

The documents required for company registration can be grouped under three heads:

Documents for Directors: Two identity proof documents like Aadhaar, PAN, Passport, Drivers License or any other Government-issued identity document would be required. Indian nationals are mandatorily required to provide PAN. Foreign nationals are mandatorily required to submit attested or apostille passport copy.

In addition to the identity proof, the Directors must submit residence proof that is less than three months old. Proof of residence documents includes bank statements, electricity bill, water bill, gas bill and telephone bill.

Documents for Registered Office: Companies registered in India must mandatorily maintain a registered office within India. In the case of leased property, the copy of lease deed for the registered office premises along with a NOC from the Landlord and EB bill/property tax receipt/water bill copy of the registered office property. In case of own property, copy of sale deed along with the EB bill/property tax receipt/water bill copy of the registered office property.

Documents for Corporate Entities: In case one of the shareholder or subscriber to the MOA and AOA is a Corporate Entity (Company, LLP, etc.,) then Certificate of Incorporation of the Body Corporate must be attached along with the resolution passed by the Body Corporate to subscribe to the shares of the company under incorporation.

• A limited company grants limited liability to its owners and management. Being a public company allows a firm to sell shares to investors this is beneficial in raising capital. A minimum of three Directors are required for establishing a Public Limited Company and it has more stringent regulatory requirements compared to a Private Limited Company.

• Public Limited Companies are those types of companies where the minimum number of members is seven and there is no cap on the maximum number of members. A public limited company has most of the characteristics of a private limited company. A public limited company has all the advantages of a private limited company and the ability to have any number of members, ease in transfer of shareholding and more transparency. Identifying marks of a public limited company are name, number of members, shares, formation, management, directors and meetings, etc.,

• In India, a non-profit organization is registered as a company under Section 8 of the Companies Act 2013.

  Companies who register themselves as Section 8 companies are usually involved in the promotion of the following:

  *COMMERCE

  *ART

  *SCIENCE

  *EDUCATION

  *SPORTS

  *RESERCH

  *SOCIAL WELFARE

  *RELIGION

  *CHARITY

  *PROTECTION OF THE ENVIRONMENT

   

  This entity is the popular choice for NGOs as it is easier to register, run and manage a Section 8 company compared to a trust or a society.

  Documents Required

  • PAN card and Residence Proof of directors of the company

  • Copy of Rental Agreement / EB Card Copy of Registered Office

  • Copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill

  • Passport-size photograph

  • Specimen signature (blank document with signature [directors only])

  • Copy of Passport (In case of Foreign Director)