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Companies are usually classified on basis of their number of members, incorporation, motive, and control.  Further companies can be classified into charter companies, registered companies, statutory companies on the basis of incorporation.  Companies can also be classified into companies limited by guarantee or shares and unlimited companies on the basis of liability.  Companies can be classified into a public company, private company, or one person company on the basis of the number of members in the company.  Companies can be small companies or large companies or otherwise on the basis of their size.  They may be divided into the subsidiary company, holding company, associate company on the basis of control over the board of the company.  Other than this, they could be non-profit companies who get a license under section 8 of companies act 2013, a foreign company, government company, producers company, investment company, etc.  Companies can be of various types, having different legal bases, special privileges, or provisions distributed between different companies.

Private Company

According to the Companies act 2013 section 2(68), the company that has a minimum paid-up share capital as per the article where there is a clause restricting transferability of shares and number of members are limited to 200 (other than in case of OPC) is called a private company.  When there are two or more members holding one share will be treated as a single member, but the following members will not be included-

An employee of the company who was the employee of the company was a member of the company and is a member of the company even after cessation of their employment and any public invitation for subscribing to any securities of the company is prohibited.

Public Company

According to section 2(71) of the Companies act 2014, the company which is not a private company and who has a paid-up share capital of at least as prescribed by government notification is called a public company.  Also, a company that is a subsidiary of a public company is considered a public company even if the subsidiary company is a private company as per its article.

One Person Company (OPC)

As per the Companies Act when a single person constitutes or forms a company is called the one-person company. This concept is introduced as a new entity in the new companies act that is companies act 2013 and it was not there in the Companies act 1954.  This type of company gave advantages to small companies because this company registration is simple and has fewer compliances.

Nidhi Company

These types of companies are those who carry on depositing and lending business to their members-only against some kind of mortgages like jewels or houses, etc.  For many years, Nidhis has the objective of cultivating the habit of thrift, with public promotion usually by local people like professionals, lawyers, educationalists,  auditors, etc., including retired persons.  Their area of business was local like within panchayats and municipalities.  Some of Nidhi companies, on account of their administrative and financial strength, also opened branches within respective revenue areas or districts and even outside.  The main motive of mutual benefit was incorporated and introduced to pool the savings from its members and lend only to its members, they never have to deal with any non-members.  Nidhis were not expected to capture in the business of hire purchase, Chit Fund, insurance, or in any other business which includes investments in debenture or shares.  As said earlier, Nidhis only do business only with members who are individuals and they do not deal with trusts or body corporates and can never be members of these companies.

Foreign Companies

According to Companies Act, 2013 section 2(42), A body corporate or company which is incorporated outside India and has a place of business in India either through an agent or by itself, through electronic mode or physically and performs business in India through any manner is called a foreign company.

Documentation and Forms to be Filled

In the MCA portal one need to log in (if one have an account earlier or create one) have to fill in basic information in the online form after clicking on RUN

Write the entity type.

Use RUN to get the name for the company, one can check the proposed name through the auto-check facility if the name is already taken by any other company (as one cannot use a similar or same name).  Also, mention the object of the company and any other related information.

Choose all the files in PDF form to upload along with the required fees.

After approval of the name following documents need to be prepared, namely:

  • Declaration by the first director(s) and subscriber(s).
  • Memorandum of Association.
  • Articles of Association.
  • Declaration by CA/advocate/CS/cost accountant practice in Form INC-8.
  • No Objection Certificate from the owner of the property.
  • Address proof of Office (Conveyance/Rent Agreement/lease deed, etc., along with rent receipts).
  • Copy of the utility bills (up to two months older).
  • Concerned regulator’s approval if any, which is mandatory to attach as proof of identity, residential address of the subscribers.
  • All the details of subscribers and first directors.
  • Digital signature certificate of subscribers.
  • Apply for PAN and TAN.
  • Fill up DIR 12 for directors.
  • Approval of special authority if needed.

SPICe form (INC-32) can be used to approve and get all of the documentation at the time of incorporation.  Basically, it is a single-window form at the time of incorporation of a company.


More or less all types of companies say it a private company or public limited company or OPC or NBFC have a similar kind of documentation process but there are certain differences for companies registration which varies on the basis of the type of company one wants to incorporate.

Why you need legal help?

A legal consultancy firm is a one-stop solution for your company registration.  As we can see incorporating and registering a company is a huge process that takes time plus if there is any wrong documentation it will waste your time and money.  In a consultancy firm, you can have all accepted advice like CA, CS, CMA, advocates under one roof.

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