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Sole Proprietorship

Partnership Firm
One Person Company
Limited Liability Partnership
Private Limited Company
Sole Proprietorship
A sole proprietorship is a business that is owned and managed by a single person. It is very
popular among the unorganised sector, particularly small traders and merchants. There is no
such thing called registration, Proprietorship recognised by other registration. Liability of the
proprietor is unlimited and the firm cannot have continuous existence. It should ideally only
be considered by small merchants and traders
Important registrations:
Sales Tax registration
Service Tax registration
Partnership Firm
A simple partnership firm is similar to sole proprietorship for all practical purposes. A
partnership firm also requires all the registrations required by sole proprietorship firms.
Partnership firms can be either registered with registrar or remain unregistered. A pan card
has to be obtained for the firm and the liability of the partners is unlimited whereas the firm
cannot have continuous existence.
Important registrations:
Sales Tax registration
Service Tax registration
One Person Company (OPC)
OPC is a recently introduced improvement on sole proprietorship firm registration. This gives
the promoter an invaluable advantage of limited liability & the company can have continuous
existence. OPC has to be incorporated through Ministry of Corporate Affairs. Not even an
audited annual returns need to be submitted to MCA. The company can nominate any other
person as director without executive powers. The service charge for this service ranges from
Rs. 5000/- to Rs 12000/-
Limited Liability Partnership (LLP)
LLP introduced in 2008, which is an improvement over general partnership. This gives
promoters an invaluable advantage of limited liability & the company can have continuous
existence. Company has to be incorporated through Ministry of Corporate Affairs. Not even
an audited annual returns need to be submitted to MCA. The service charge for this service
ranges from Rs. 6000/- to Rs 14000/-
Private Limited Company
It is the most popular legal structure for business and allows outside funding and also
employee stock options. More stringent compliance measures to be followed, hence more
credibility. The company need to appoint an auditor and the audited financial statements are
to be submitted to MCA annually. The company is eligible to issue debentures and
convertible debentures. The service charge ranges from Rs.7000/- to Rs.15500/-
Company incorporation is streamlined with the introduction of INC-29
From May-2015, company incorporation can be divided to 2 broad steps
Obtaining Digital Signature Certificate
Preparing and submitting INC-29
Government Fees for various types of companies
One Person Company – Rs.6850/-
Limited Liability Partnership – Rs.3167/-
Private Limited Company – Rs.7800/-
Documents Required for INC-29
Director Identification Number (DIN)
Memorandum of Association (MOA)
Articles of Association (AOA)
Affidavit and declaration by first Subscribers and Directors.
Proof for Registered Office Address. – Rental Agreement / Sale Deed.
Copies of utility bill of the registered office address that are not older than 2 months.
If the proposed company name is a filed or registered trademark, then NOC from the
trademark applicant or owner must be attached
1) Acquiring Digital Signature Certificate (DSC)
This is the first step on how to register a company in India in which each director of a
company obtains their identification number. As per the amendment Act of 2006, acquiring a
DIN is compulsory for every director i.e. as such every existing and intending directors have
to obtain their DIN. To get DIN one need to file an eForm DIN-1. This form is available on
the Official site of the ministry of corporate affairs.
Register yourself on MCA Website first and have a login id. After filling DIN-1 Form, one
should upload the filled form by clicking to e-Form upload button on MCA website and
should pay applicable fees.
After getting the generated DIN, one should intimate their company about DIN. The director
can intimate their company about DIN by using the DIN-2 Form.
The company should then intimate the Registrar of Corporates (ROC) about all director’s
DIN through DIN-3 Form.
If there is any change in DIN or need for any updates like a change in address, personal
details etc, then the director should intimate this change by submitting the eForm DIN-4
Form.
2) Acquiring Director Identification Number (DIN)
In order to ensure the security or authenticity of documents filed electronically, the
information act of 2000 demands a valid digital signature on the documents submitted
electronically. This is the safest way that one can submit their documents. The digital
signature certificate should be acquired by only those agencies which are appointed by the
controller of certification agencies (CCA).
If you already have a digital signature then you can use the same, no need to apply for
another. But do check for your digital signature validity, agencies issue DSC’s with one or
two-year validity after expiry you have to renew it.
3) Filling an eForm or new user registration
This is about having a registered user account on MCA Portal for filing an e-Form, for online
fee payment, for different transactions as registered and business user. Creating an account is
totally free of cost.

Public company – 7 or more


Private – two or more
Opc – one person and another person
Subscribe in MOA
Indian directors - pan card, address prof, residential proof
Foreign directors – passport, address and residential
Registered office proof

Abysmal
Extremely bad; appalling. “The results were pretty abysmal;” “Abysmal failure.”