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Short Note on Company Registration and Related Processes
1. Company Registration
Company registration is the process of legally incorporating a business entity under the Ministry of Corporate Affairs (MCA) in India. It provides the business with a separate legal identity, allowing it to own assets, enter contracts, and operate independently. Company incorporation ensures limited liability, meaning the owners are not personally responsible for company debts. The registration process is conducted online through the MCA portal using the SPICe+ form.
Types of Company Registration in India
-Private Limited Company (Pvt Ltd) – Requires at least two shareholders and two directors.
-One Person Company (OPC) – Suitable for solo entrepreneurs with limited liability benefits.
-Section 8 Company – Registered as a non-profit organization (NGO) for charitable purposes.
-Subsidiary Company – A company owned and controlled by a parent company, either domestic or foreign.
2. Section 8 Company Registration
A Section 8 Company is registered under the Companies Act, 2013, for charitable, social, or non-profit purposes. Unlike other companies, Section 8 Companies do not distribute profits to their members; instead, the profits must be reinvested into the company's objectives.
The Section 8 company registration process involves filing the SPICe+ form, submitting MoA and AoA, and obtaining approval from MCA.
3. One Person Company (OPC) Registration
A One Person Company (OPC) is a company with a single director and shareholder. It is ideal for solo entrepreneurs who want the benefits of limited liability and a separate legal entity.
Key Features of OPC
-Limited liability protection for the owner.
-No minimum capital requirement.
-Easier fundraising and loan approval compared to proprietorship.
-Must convert to a private limited company once the turnover crosses ₹2 crores.
The OPC registration process includes applying for a Digital Signature Certificate (DSC), Director Identification Number (DIN), name approval, and incorporation through the SPICe+ form.
4. Subsidiary Company
A subsidiary is a company owned by another company, known as the holding company. The holding company owns more than 50% of the subsidiary’s shares.
A subsidiary must comply with Indian corporate laws, taxation, and foreign direct investment (FDI) guidelines.
5. GST Registration
Goods and Services Tax (GST) Registration is mandatory for businesses with:
-Annual turnover above ₹20 lakh (₹10 lakh for special category states).
-Engaged in interstate supply of goods/services.
-E-commerce sellers and exporters.
6. GST Cancellation
A business must apply for GST cancellation if:
-It closes operations or shifts to exempted services.
-The turnover falls below the GST threshold.
7. AD Code Registration
AD Code (Authorized Dealer Code) Registration is required for businesses engaged in import-export activities. It is a 14-digit code issued by a bank to facilitate customs clearance.
AD Code is mandatory for exporters to receive foreign payments and claim export incentives.
Conclusion
Company registration, OPC registration, Section 8 company registration, subsidiary company incorporation, GST registration, GST cancellation, and AD Code registration are crucial for entrepreneurs and businesses. Ensuring proper legal compliance helps businesses grow, expand, and operate seamlessly. For more inforamation click the link below: