Whether you want to register a company or start a new business in Chennai, the city offers the best opportunities for all sectors.
The state government of Tamil Nadu has also taken various steps to develop business in the capital city.
When we want to start our own business, the first thing that comes to our mind is company registration. This is a basic legal requirement when starting a new self-employment business.
In this article, we look at the different types of companies and how to register them.
How many types of company registration are there in India?
Six important types of company registration in India
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Company registration in India is broadly divided into six types
- Proprietorship Firm Registration
- Partnership Firm Registration
- Private Limited Company Registration
- One Person Company Registration
- Limited Liability Partnership Registration
- Public Limited Registration
Each company can be registered as Proprietorship Firm , Partnership Company, Pvt Ltd, LLP, OBC or Public Limited.
Since the company registration process is complex, it is a good idea to hire a company registration lawyer to register your New company registration in Chennai.
1. Sole proprietorship registration in tamilnadu
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Sole proprietorship registration in Tamil Nadu is a form of business owned and controlled by one person, called the owner.
list itemThis form of ownership is the most common in Tamil Nadu and is best suited for small startup businesses.
It is not considered a company or an organization and the owner of the business is the sole proprietor and is legally referred to as a company.
Starting and managing the business with minimum legal compliance/formality. A sole proprietorship is also not subject to any regulatory law.
Here are the major advantages of registering as a proprietary company in India.
Minimum legal requirements and obligations.
Fast solidification and easy dissolution.
Ease of decision making
Tax advantages
One-day registration process
2. Partnership company Registration in chennai
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Partnership firm registration is the most common and popular type of partnership in India.
A partnership is a legal entity formed for the common benefit of two or more persons.
Partnerships in India are governed by the Indian Partnership Act, 1932 and partnerships can be registered or unregistered.
This type of partnership is formed by all partners signing the partnership deed in the presence of two witnesses.
The partnership deed is a legal document that enables all partners to agree to the terms discussed and finalized and serves as evidence of the terms agreed upon.
The main advantage of this type of partnership is that it is easier to register and maintain than other types of companies.
3. Private Limited Company
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A short-lived company, usually in the form of a small business. Section 2(68) of the Companies Act 2013 defines it as a private company and provides for limited liability.
Like other listed companies, shares are not freely transferable. In this type of company all profits and liabilities belong to the company and shareholders are not liable for the company’s debts.
The main advantages of this type of company are.
Pvt. Ltd. is an independent company and changes in directors or shareholders do not affect the profitability of the company. This type of company can receive foreign direct investment without many legal requirements. Shareholders cannot transfer their shares to third parties.
Minimum requirements for registration of company in chennai
Two Shareholders
Two Directors
One Lakh of Share capital
Office space in India
4. Registration of an One Person Company (OPC) firm registration
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If an owner wants to convert to a private limited company, a One Person Company.is the best option
also known as OPC, as this type of company can only be created with one partner and one director.
According to Section 2(62) of the Companies Act, a sole proprietorship is a legal entity in which only one person is a member.
This type of company was introduced by the central government through the 2013 amendment to the Indian Companies Act.
Setting up a one-person company requires fewer formalities than other types of companies. It is relatively simple.
It combines the features of an individual owner and a company.
The company combines the features of a sole proprietorship and a partnership.
5: Register a limited liability partnership (LLP) in Chennai.
Register a limited liability company. This is a type of registered company that combines the advantages of a partnership with the advantages of other companies.
Defined in 2008, LLPs were introduced by the federal government through the Joint Liability Act 2009.
The LLP system was introduced to provide a permanent form of partnership and to assist limited liability holders.
A limited partnership can be formed with a minimum of two partners. All the rights and obligations of the nominated partners are governed and maintained by the LLP agreement.
6. Public Limited Company Registration
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This type of company registration in India is suitable for large companies that require significant investment.
This is because such companies can raise capital by collecting deposits from the public. These companies can be both listed and unlisted.
Limited companies require a minimum of three directors and there is no limit on the maximum number of shareholders.
Significantly, the regulatory requirements are stricter than for public limited companies.
Significantly, the regulatory requirements are stricter than for public limited companies.
Advantages of registering as a limited company
Suitable for large companies
Permanent presence
Simplified share transfer
Possibility to be listed on the stock exchange