We as a firm provides the facility of incorporation/registration of a business enterprise. It can be broadly divided into two categories: -
Un-incorporated form of organisation is that form of business may be started without registration, corporate form of organisations cannot be set up without registration under the laws which govern their functioning. Company form of organization is the most popular form of corporate organization.
Section 2(20): Company means a company incorporated under this Act or under any previous Company law.
TYPES OF COMPANIESPrivate Limited Company is a company which is privately held for small businesses. The liability of the members is limited to the amount of shares respectively held by them and which by its articles restricts the right to transfer its shares, limits the number of members to two hundred and prohibits any invitation to the public to subscribe for any securities of the Company.
Public limited Company means a Company which is not a private Company and has a minimum paid-up share capital as may be prescribed
Section 8 Company established to promote commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object, intends to apply its profits, if any, or other income in promoting only the objects of the company and no dividend is paid to its members. Therefore, Section 8 Company is a company registered under the Companies Act, 2013 for charitable or not-for-profit purposes.
One Person Company means a company which has only one person as a member. The concept of One Person Company (OPC) 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 person economic entity. Similarly, a OPC 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.
Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property. A non-banking institution which is a company and has principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments by way of contributions or in any other manner, is also a non-banking financial company (Residuary non-banking company).
Government Company means any company in which not less than 51 % of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, and includes a company which is a subsidiary company of such a Government company.
Producer Company means a body corporate having objects or activities specified in section 581B of the Companies Act, 1956 and registered as Producer Company under the old Act
Nidhi Company means a company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit, and which complies with such rules as are prescribed by the Central Government for regulation of such class of companies.
IFSC Company an unlisted public company which is licensed to operate by the Reserve Bank of India or the Securities and Exchange Board of India or the Insurance Regulatory and Development Authority of India from the International Financial Services Centre located in an approved multi services Special Economic Zone set-up under the Special Economic Zones Act, 2005 (28 of 2005) read with the Special Economic Zones Rules, 2006
Micro Finance Company (MFC) is a type of Non-Banking Financial Company (NBFC) which is in a business of micro (small) credit to a special type of borrowers. A company is said to be in the business of Micro Finance if it holds at least 85% of the Micros in the nature of qualifying Micros.
Qualifying Micros are described as follows:
A body corporate incorporated outside India (including a firm or other association of individuals), desirous of opening a Liaison Office (LO) / Branch Office (BO) in India have to obtain permission from the Reserve Bank under provisions of FEMA 1999.
A Liaison Office (also known as Representative Office) can undertake only liaison activities, i.e. it can act as a channel of communication between Head Office abroad and parties in India. It is not allowed to undertake any business activity in India and cannot earn any income in India. Expenses of such offices are to be met entirely through inward remittances of foreign exchange from the Head Office outside India.
Companies incorporated outside India and engaged in manufacturing or trading activities are allowed to set up Branch Offices in India with specific approval of the Reserve Bank. Such Branch Offices are permitted to represent the parent / group companies and undertake the following activities in India:
Reserve Bank has granted general permission to foreign companies to establish Project Offices in India, provided they have secured a contract from an Indian company to execute a project in India, and