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What is meant by Company Registration or Company Incorporation in India? Before answering the distinction, let us understand what a company really is. A Company is a registered business entity comprising two directors or more with its share of member-owners and shareholders. Such entities are formed per the Company Registration regulations under the Companies Act of 2014.
To answer the second question, Company Registration is a simple procedure to award a legal identity to a business. Company Incorporation, on the other hand, creates a separate entity with provided Limited Liability Protection, among other benefits. The Company Registration procedure can be thought of as a CRN or Company Registration Number acquisition procedure applicable in India. With registration, the Company has imparted a legal infrastructure to dispense its commercial activities.
In this article, we will discuss the types of Business Registrations in India. The Companies Act of 2014 has formalized multiple eligible business structures for interested Corporates to adopt. Each such structure offers some unique features which make it more plausible to be adopted by Businesses as per their commercial needs.
As per the Companies Act of 2014, the stipulated ordinance has effected six types of Company Incorporation in India, each taking a different approach towards the registration process. The different but prominent Company Registration types in India are:
Every company registration applicant must know that Companies of every kind share some basic features because of their common legal structure. Let us see them one by one.
A registered Company is a legal person. He has an identity distinct from its directors. After its incorporation, the Company gets its birth certificate in the form of a Company Registration Number or CRN. A Corporate can get such a birth certificate after the completion of its registration process. Such a procedure makes a Company a separate individual identity.
The Company limits the liability of its members as well as shareholders & directors, to the losses incurred in their share subscriptions. Such an advantage safeguards the Company’s stakeholders from losing its personal assets if it files for bankruptcy or comes under huge debts.
In a Company, the shares can be transferred among its members without restriction. But such a transfer is only limited between its members and stakeholders. To offer shares to the general public or facilitate share exchange between the parties, the Company must go public.
Many earlier corporate structures couldn’t stand the loss or withdrawal of a member or a partner from its arrangement, and they eventually will perish. But such is not the case with a Company Registration. Here, the Company’s existence isn’t bounded by its directors. Such company models can perpetually exist even after the Director’s demise or withdrawal from his or her position.
With such common benefits, let us look at the distinct features of each Business Registration type in India.
We have carefully listed the distinctive features of every Company Registration type in the following section, so read carefully.
If you wish to register your Business as one of the aforementioned corporate types, you can connect with Incorporation Team at Registrationwala. Our Incorporation consultants can recommend the Business Types per your to-be-undertaken business activities.
Also read: What are the Documents Required For OPC Registration
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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