Companies are differentiated according to the number of members under the Companies Act of 2013. To provide MSME benefits, the Micro, Small, and Medium Enterprises (MSME) Act divides businesses into three categories: micro, small, and medium. In addition, the liability of their members, ownership, and listing status can be used to classify businesses. The company types list is discussed below.
Types of companies based on Size
To provide MSMEs with government benefits, the MSME Act divides businesses into sizes. To receive MSME benefits, businesses are differentiated according to size as follows:
Micro Company
A micro company is one with a plant and machinery investment of less than Rs. 1 crore and a turnover of less than Rs. 5 crores annually.
Small Company
A small business is one with a plant and machinery investment of no more than Rs. 10 crores and a turnover of no more than Rs. 50 crore annually.
However, the Companies Act of 2013 also offers numerous advantages to small businesses. According to the Companies Act, a company is considered a small company if it’s paid-up share capital is less than Rs. 2 crores and its annual revenue is less than Rs. 20 crore.
Medium Company
A medium-sized business has a minimum investment in plant and machinery of Rs. 50 crore and a minimum annual revenue of Rs. 250 crores.
Types of companies based on liabilities
The liability of an organization’s members can be either limited or unlimited. When the company goes bankrupt, experiences a loss winds up, or pays its debts, the member of the company becomes liable. As a result, the liability of a company’s shareholders can also be used to classify a company established under the Companies Act of 2013.
Limited by Shares
The Memorandum of Association (MOA) limits the members’ liability in a company limited by shares. Only the unpaid balance on the shares each member of the company owns is liable.
The shareholder’s ownership stake in the business is measured by the equity shares they hold.
Limited by Guarantee
The member’s liability in a company limited by guarantee is limited to the amount they pledge to contribute to the company’s assets. The MOA of the company limits the member’s liability.
In the MOA, the members promise to contribute the guaranteed amount if the business is wound up. The member’s guarantee amount determines the percentage of ownership.
Unlimited Company
The members of an unlimited company are not limited in their liability. The member’s liability for any debt is unlimited and includes their assets.
Most of the time, business owners decide not to incorporate this kind of business.
Types of companies based on control
The ownership structure and control of the businesses can be categorized as follows:
Holding company
A subsidiary company that controls the majority of another company’s votes is considered to be a holding company.
The subsidiary company’s policies, assets, and management decisions are all managed by the parent holding company.
It does not, however, participate in the subsidiary’s day-to-day operations.
Subsidiary Company
Another company (the holding company) owns a subsidiary company either entirely or in part. More than half of the voting power in the subsidiary company’s board of directors is in the hands of the holding company.
The subsidiary is referred to as the Wholly Owned Subsidiary (WOS) of the holding company when a single holding company controls all voting rights.
Types of companies based on listing
Based on their ability to access capital, the businesses are divided into listed and unlisted categories. Public companies are not always required to be listed companies. Private or public limited companies are examples of unlisted businesses.
Listed Company
A company that is registered on several recognized stock exchanges within or outside of India is known as a listed company. On the stock exchanges, the shares of the companies that are listed can be traded at any time. The Securities Exchange Board of India (SEBI) has established guidelines that they are required to adhere to.
A prospectus inviting the general public to subscribe to the company’s debentures or shares should be issued by a company that wants to list its shares on stock exchanges.
An initial public offering (IPO) and a subsequent public offering (FPO) are the two methods by which a company can list its shares.
Unlisted Company
An unlisted company is one whose shares are not freely tradable on stock exchanges and are not listed on any recognized stock exchange.
These businesses raise money from friends, family, financial institutions, or through private placement to meet their capital requirements.
If an unlisted company wants to list its securities on stock exchanges, it must become a public company and issue a prospectus.
Company types list
The Companies Act, 2013 (the “Act”) allows entrepreneurs in India to register a variety of types of companies to run their businesses and provide a legal framework. The following are the various kinds of businesses:
One Person Company
The OPC (one-person company) concept was first introduced by the Act. The Act defines an OPC as a single-member company.
The member may also serve as the company’s director. The OPC can have up to fifteen directors, but it should only have one member.
Public limited company
A public limited company is one in which shareholders can own stock in the company. A public limited company can have as many shareholders as it wants. But there must be at least seven people to start one.
There must be two directors, and the company can have up to fifteen. The public limited company registration in Bangalore is done at an affordable cost.
LLP
A limited liability partnership (LLP) is a hybrid corporate entity that combines the flexibility of a partnership with the advantages of a limited liability company.
The partners are immune from the actions of other partners and have limited liability.
The company is its legal entity and can sign contracts in its name. The LLP can continue to exist and hold property in its name despite partner changes.
As a company, it has perpetual succession, and its existence is independent of its partners.
Let’s see a few details about Public limited, OPC & LLP.
Public limited company
The term “Public Limited Company” refers to a business that is not a “Private Limited Company” and has at least 3 directors and 7 members at the time of incorporation. Additionally, the word “Limited” should be included at the end of the name of the company.
A Public Limited Company can have an unlimited number of shareholders and issue shares to public subjects. Shares in a PLC that can have public limited company registration in Bangalore can be transferred freely and without restriction.
Requirements for Public limited company registration in Bangalore
Public limited company registration in Bangalore requires as given below.
- Minimum 3 Directors
- Minimum 7 members
- The name of the company should be unique
- Shareholding structure
- For subscribers and Directors of the company.
Documents required for Public Limited Company registration in Bangalore
For Directors
- Public limited company registration in Bangalore needs a Copy of the PAN
- Copy of Aadhar
- Copies of utility bills/Latest bank statement.
Then For Subscribers
- Copy of PAN
- Public limited company registration in Bangalore needs a Copy of Aadhar
- Copies of utility bills
- Board resolution for authorization of Body corporates.
And For Office address
- Copy of rent agreement
- Public limited company registration in Bangalore needs the Latest electricity bill
- NOC from owner
Application for approval of name of Public limited company
Name Reservation of the Proposed Company necessitates the submission of an application for name approval.
The name ought to be distinctive enough that neither the proposed name nor any other company or trademark has been registered.
If the name of the new company is similar to that of the old one, a NOC from the new company is required.
For Public limited company registration in Bangalore obtain the DSC of the subscribers
All of the company’s Subscribers and Directors must sign any Mandatory Documents.
The company’s filing of Form Spice, SPICE MOA, and SPICE AOA.
Advantages
Public limited company registration in Bangalore has the following advantages.
Possibility to sell stock to the public to raise money
This option to sell stock to the public is one of the advantages that public companies enjoy. To finance operations and new product offerings before going public, it is difficult to obtain substantial capital other than through borrowing.
A private company can only get funding by putting its profits to use, getting a loan, or getting investments from a few wealthy people, who might not have enough money to cover the company’s costs.
By letting investors buy shares of the company, public companies can raise money in the primary and secondary markets.
Public companies that have Public limited company registration in Bangalore can engage in capital-intensive activities because they can raise a significant amount of capital through public exchanges. Shareholders gain from stock capital gains and dividend payments in exchange.
Financial information is readily available.
The Securities and Exchange Commission (SEC) requires public companies that have Public limited company registration in Bangalore to submit quarterly and annual financial statements and other mandatory documents.
Shareholders, financial media, interested investors, and financial analysts can access additional information about the business as a result of the requirement.
Analysts find it simpler to determine the company’s value when financial information is readily available.
Private businesses, on the other hand, are not required by law to make their financial reports public. As a means of informing both current shareholders and potential investors about the company’s future and financial performance, public companies are motivated to comply with disclosure requirements.
Public limited company registration in Bangalore can be done at an affordable cost.
LLP
The Limited Liability Partnership (LLP) is the most popular type of business for aspiring entrepreneurs. Why? Because it combines the advantages of both a separate partnership firm and a company.
In 2008, the formation of an LLP was first proposed in India. All of the assets of a partnership firm and a company have no inclusion in an LLP. In India, its regulation is the responsibility of the LLP Act.
At least two partners are required for LLP registration in Coimbatore. However, the maximum number of partners an LLP can have is not set in stone.
There are two partners, and at least one of them must be a native Indian resident. Both partners should be normal people.
All of the partners’ rights and responsibilities are outlined in the LLP agreement. The partners ensure that the LLP Act and the agreement’s guidelines and provisions are adhered to appropriately. LLP is used for LLP registration in Coimbatore.
Documents needed
For Partners
- LLP registration in Coimbatore needs a passport
- Voter ID
- Aadhar card
- Address proofs like Telephone bill, Gas bill.
- Bank statements not older than 2 months.
- LLP registration in Coimbatore needs the DSC and DPIN of all the partners.
For Registered business address
- LLP registration in Coimbatore needs a Telephone bill
- Electricity bill
- NOC from the owner if the office is on rent
- LLP registration in Coimbatore needs Stamped and notarized rent agreement
Legal drafts
- Stamped and notarized LLP deed for LLP registration in Coimbatore
- Online questionnaire
Procedure
You will be ready to submit the application for LLP registration in Coimbatore once you have completed obtaining the DPIN and DSC, reserving the name, and drafting the LLP agreement.
The Ministry of Corporate Affairs’ official website provides public access to the application.
The application asks for information like the names, addresses, and capital contributions of all partners, as well as the names and DPINs of all designated partners and the LLP’s registered address.
You might have trouble filling out the form because it asks for a lot of details that might be hard to understand.
You shouldn’t be concerned about that at all! Simply get in touch with our Startup advisors, and they will help you with the application submission process. The authorized designated partner will be required to use his digital signature certificate to sign the application after it has been filled out and uploaded with all supporting documents.
Now that the application has been signed, it can finally be sent to the Registrar along with the required application fees.
The Registrar will then examine the submitted application for LLP registration in Coimbatore. And if he is satisfied that it was filed accurately and with the correct information and documents, he will approve your application and, ultimately, register your LLP.
He will issue a Certificate of Registration in the name of your LLP, which can be downloaded online, and will assign a unique LLP Identification Number as conclusive proof of such registration.
The mutually agreed-upon terms and conditions of an LLP’s foundation are similar to those of any other partnership business.
The LLP agreement, which is signed by all partners in the presence of a Public Notary, contains all of these terms and conditions. Within thirty days of the LLP’s incorporation, the agreement must be submitted to the Registrar of Companies.
Advantages of LLP
- An LLP has its legal unit, just like businesses that have their legal unit. The LLP is not the primary affiliation of the partners.
- Any Limited Liability Partnership (LLP) can sue or be sued if it has LLP registration in Coimbatore.
- Only the LLP designation is used to sign all contracts.
- This boosts customers’ confidence in their company and earns the trust of several stockholders.
Limited partners’ responsibilities
The partners’ responsibilities in an LLP are contingent on their contribution to the business. Consequently, this boils down to the fact that the partners will only be reimbursed for their respective contributions.
When LLP registration in Coimbatore is done, the partners are not liable for the company’s losses. Only the LLP’s possessions are liable for debt repayment if the LLP is on its way to dissolution during the wind-up process.
Because the partners don’t have any personal responsibilities, they can freely operate as trustworthy businessmen.
Simple and inexpensive agreement
It should come as no surprise that if you have decided to establish an LLP, you are aware of its low cost in comparison to other kinds of private or public limited companies.
LLP registration in Coimbatore requires only two official statements per year and has few compliance requirements. Such as an annual return, solvency, and an account statement.
OPC
A one-person company has owned and registered by only one person. The government has introduced a new type of company under the Companies Act of 2013 that is suitable for individuals who want to run their businesses.
This company is an updated version of a sole proprietorship; the main difference between the two is that the OPC is registered with the Ministry of Corporate Affairs, whereas a sole proprietorship is not governed or regulated by any law.
OPC is a type of private limited company in which each shareholder is a single person. During its lifetime, the company can only have one shareholder. OPC can have OPC registration in Chennai at an affordable rate.
The company must first convert itself from an OPC into a private limited or public limited company before it can issue shares to attract new members.
OPC that has OPC registration in Chennai enjoys the merit of a private limited company, except not being able to conduct its business in the banking and financial services sectors or perform its functions like NBFCs.
Documents for OPC registration
- Copies of PAN, Aadhar card
- Identity proof
- OPC registration in Chennai needs Address Proof
- Photographs
- Business address proof
- Specimen sign
- OPC registration in Chennai needs DSC and DIN
Documents for registered office
- Current bank account
- OPC registration in Chennai needs a Rental agreement
- NOC from Landowner
- Property or sale deed.
Procedure for OPC registration
For obtaining OPC registration in Chennai, the following steps are followed.
DIN processing and DSC application:
After receiving some scanned documents from the client, we will register the DSC and DIN of directors within one to two business days for OPC registration in Chennai.
Approval and incorporation of the company name:
Within seven to ten days, company name approval and OPC registration in Chennai are completed after the director’s DSC is obtained successfully.
Company’s PAN and TAN:
During registering through OPC registration in Chennai, your OPC’s PAN and TAN are also applied for, and the PAN & TAN Card will be sent to your OPC’s registered office address via courier within 15 to 20 business days.
Advantages of OPC
OPC registration in Chennai has the following advantages.
- OPC Pvt Ltd. is a one-person business that can have the start by a single person.
- There is no minimum amount of money necessary to start the business.
- After having OPC registration in Chennai, the company is a separate legal entity. So it can own, rent, buy, and deal in properties in its name.
- Because there is only one shareholder in the company, there is no profit-sharing option.
- After obtaining OPC registration in Chennai, the liability of shareholders is limited. There is no need to hold general meetings, including the annual general meeting because there is only one shareholder in the company.
- The company must hold two board meetings per calendar year, and the time between the two meetings must not be less than 90 days.
- Compliance requirements are lower than those of a public limited company.
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