Business Registration in India or Company Registration in India.
If you are planning to start a business in India, the first & major step is to establish the legal presence of your commercial enterprise in India by using registering your business according to the applicable provisions of the Indian Companies Act.
As a Startup, you have many options to register your enterprise like
- Sole Proprietorship,
- Partnership Firm,
- One Person Company,
- Limited Liability Partnership,
- Private Limited Company, and
- Public Limited Company.
It is compulsory to check in your commercial enterprise before beginning any commercial enterprise. The first pillar is to decide the type of enterprise shape and structure you need to choose for your enterprise amongst different types of commercial enterprise structure and shape available in India. Out of all these business structures and shape Private limited Company is popular and easy to register in India.
Private limited company is a popular business form in India and reason for popularity is limited liability, raising the foreign investment, Separate legal identity. For incorporation of private limited company in India one has to follow the provision mentioned under the Indian companies act and companies incorporation rules. As per the companies Act Company is association of 2 or more person hence for formation of company as private limited minimum two people required. These two people called founder and if they are shareholder in company they called share shareowner and shareholder can be natural person or artificial person. Apart from shareholder directors also required for registration of private limited company and minimum no of director requirement as per Indian companies act is two and the only natural person can be a director in the company. Director can be shareholder or shareholder can be director of company
- Minimum number of person required for private limited company formation is two
- Minimum number of shareholder required is two and
- Minimum number of Director required is two.
Directors: – Directors are the person who manages the company on behalf of the owner of the company. As per Indian companies act an only natural person can be a director in the company. Directors are the natural person appointed by the board of directors as per procedure of companies’ act and companies’ director appointment rules. In general, the term director is the manager who does day to day activates in the company and runs the company as per the direction or guidance of company owner. A minimum number of directors required in a private limited company is two. As per company act one director must be resident of India and period of residency is at least 182 days form in one calendar year. A company can keep any number of the director, however, if company wish to appoint more than 15 direct he has to call a meeting of its shareholder and pass the majority of resolution in favor of the appointment of Directors.
Basic Requirement for Directorship.
- An only natural person can be Director.
- The person who wishes to appoint director must have Director Identity Number (DIN)
- Director can be of any nationality.
- A minimum number of directors required for private limited company formation is two.
- There is no maximum limit of directors in a company.
- One Director must be a resident of India.
- The minimum period of the Resident is 182 days.
- This one 182 is counted as on date of application of Directorship.