Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Get Register Your Company in India

By Mukesh Kumar Subscribe to RSS | July 5th 2012 | Views:
loading
 
  



Company is formed for the purpose of business having a distinct identity or name and limited liability. It is an association of persons created by the process of law. Under Indian law the rules are set down in The Companies Act 1956 for the establishment of both public and private companies. A company is formed by registering the Memorandum and Articles of Association with the State Registrar of Companies of the state in which the office is located. Under the Companies Act, an entrepreneur can form mainly two types of companies, namely a private company or a public company. The companies can be further classified as:

1) Public Company

2) Private Company

3) Limited and Unlimited Companies

4) Section 25 Company or Non Profit Organization(NPO)

5) Holding and Subsidiary Companies

6) Government Company

7) Foreign Company

Public Company - It is a company in which shares are held collectively by the general public instead of few individuals. Minimum number of members is seven and if members become less than seven than the company is no longer a public company. Its shares are freely transferable and there is no ceiling on its membership. It can invite general public to subscribe to its shares. Public Company can be registered with minimum of rupees five lakh as capital with seven members and three directors.

Private Company - It is the most popular form of business entity used for Foreign Investors in India, including USA investors in India. It restricts the right of members to transfer its shares and limits the number of its members to fifty. Minimum number of members in a private company is two. A private company does not need a separate certificate from the Registrar of Companies for the commencement of its business. Public Company can be registered with minimum of rupees two lakh as capital with two members and two directors.

Limited and Unlimited Companies - Companies may be limited, limited by shares or limited by guarantee.

a) Company limited by shares - In this the liability of the members is limited to the amount of uncalled share capital. No member of the company limited by the shares can be called upon to pay more than the face value of shares or so much of it as has remained unpaid. The members of limited companies have no liability in case of fully paid up shares.

b) Company limited by the guarantee – In this company the liability of members are limited by its Memorandum of Association (MoA) to such amount as the members may thereby undertake to pay if necessary on liquidation of the company. The liability of the members to pay the guaranteed amount arises only when the company has gone into liquidation and not when it is a going concern.

c) Unlimited Company - In this company the liability of the members is similar to that of the liability of the partners in a partnership firm and the members of an unlimited company are unlimited.

Section 25 Company or Nonprofit Organization - It is a company established for promoting commerce, science, art, religion, charity or other socially useful objectives .The company apply its profits and other income in promotion of its objectives instead of paying any dividend to its members. Under Section 25, the Central Government may allow companies to remove the word "Limited / Private Limited” from the name. Many privileges and exemptions are provided to these companies under Company Law like it is exempted from requirement of Minimum Paid-up capital and Stamp duty for registration.

Holding and Subsidiary Companies - When the other company controls the board of directors and holds more than half (>50%) in face value of its equity share capital than the company is Holding or Subsidiary Company. The holding company has the power of discretion over the subsidiary company. It can appoint or remove all or majority of directors without consent or concurrence of any other person.

Government Company - A Government Company is the one in which all the decisions related to management and operations are taken by the government and 51% or more is held either by the central government or by the state government or is jointly held by the central and the state government.

Foreign Company- which has set up its business in India and has been incorporated outside India, under the law of some other country, is registered in that country and is called a Foreign Company.

Mukesh Kumar - About Author:
Set up your Business successfully with trademark registration and find also company registration india services. Find reasonably priced new company registration services and more.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/business-articles/get-register-your-company-in-india.htm

Related Business Articles Subscribe to RSS

Moving company Dubai: Services and benefits of hiring a professional mover
Published by Edmund Brunetti on March 13th 2012 | Business
If you are moving to Dubai, you must take professional help of the best mover for a safe & secure re...
 
Tips for choosing an air conditioner company
Published by Sudhanshusnv on August 3rd 2012 | Business
If you will consider all these things in mind before your choosing air conditioning company, then yo...
 
Packers all over India with Movers and Packers company easily
Published by Ankita Gupta on May 30th 2012 | Business
Every one of us has the experience of moving from one place to another. For some moving is almost wa...
 
Get a dedicated server for your company
Published by Genevieve Ackles on January 21st 2012 | Business
Are you an online business? Then you should know how important a dedicated server is for your compan...
 
Best moving company with unparallel network and competitive price
Published by Ankita Gupta on December 30th 2011 | Business
Here you are at best packing and moving company. You will get loading and unloading services, wareho...
 
Only company in India for packing and shifting services you can rely
Published by Ankita Gupta on January 5th 2012 | Business
Thanks for visiting. All of us offer services on the loading and unloading, warehousing services, ho...
 
JNT developers;Plano roofing company, the best company in Plano
Published by JNT Developers on December 9th 2011 | Business
This is not the only purpose of the roofing but JNT developers is among those companies that do unde...
 
How Phone call tracking assist a company?
Published by Delacon on December 16th 2011 | Business

Phone call tracking provides immediate & elaborated phone-call analytics reports. This report co...
 
About my company and the services we provide
Published by Seolncr on February 28th 2012 | Business
Do you want to promote your business on the internet market? My company is one of the best online ma...
 
Techniques for medical equipment manufacturers Through Supercharge your provide you with company lately!
Published by Samuel Willie on May 29th 2012 | Business
Advancing produce thread control might be a section of concern through a large amount of insurance c...
 
What it takes to set up a company in China
Published by Barker Hicks on April 28th 2012 | Business
When foreign investors want to set up company in China it is advisable for them to review their inve...
 
Best qualities for moving company Regina
Published by Richard on August 5th 2012 | Business
Your belongings are the most important things for not only you but for the moving company Regina too...
 
A company’s repute and the water jet cutting services
Published by Ajax William on March 16th 2012 | Business
If the reputation of a company in an industry is great, then it will be recognized, by the customers...
 
How do you choose the best HR Software for your company?
Published by Mary Porter on June 16th 2012 | Business
Make it less or a nightmare and more of pleasure selecting new HR Software packages using a user-fri...
 
Need of a number plate & benefits of registration
Published by Robert Muraine on July 9th 2012 | Business

There are variety of number plates that organizations have developed on the market in many group...
 
Enjoy great services from best pool removal company
Published by Ashish Pandey on May 5th 2012 | Business
Getting the landscaping services from a reliable company is a must. You can hire the best profession...
 
Promote your company with Custom Umbrellas!!!!
Published by Sodablues on January 9th 2012 | Business

There is a broad array of custom umbrellas accessible in the market at the moment constituting, ...
 
Usefulness of online payroll company for small business
Published by Julia Roger on January 6th 2012 | Business
Small business establishments with around forty to fifty employees might require the services of pro...
 
The best solution of an art and graphics company with several competencies
Published by Somjons12 on January 16th 2012 | Business
imprimerie montreal is the best option to go for some of the exclusive imprimerie for you and your c...
 
Limited company advantages: the greatest defense for a business owner
Published by Crowin Smith on February 13th 2012 | Business
The business laws that govern the world of business have to be understood properly before taking fur...