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

Tamin Theodore Kim makes business success with his software development company
Published by Colbert Raynard on March 20th 2012 | Business
Athena Software Services, Inc., owned by Tamin Theodore Kim, is just one of the prestigious third-pa...
 
Marketing company in Sydney helps you to take your production to next level
Published by Marketingspace on June 14th 2012 | Business
While establishing a business, ones integral focal point is entirely on advertisement regarding the ...
 
Easy steps for Trademark registration in Saudi Arabia
Published by JCA Trademark on December 15th 2011 | Business
JCG trademark providesTrademark Registration in Morocco. Now, register your business today and becom...
 
Get thermal insulation materials by a reliable company
Published by Christy Jackson on April 30th 2012 | Business
The article is based on the thermal insulation materials offered by the retailers. It talks about th...
 
Fishing out the right company that imports goods safely to foreign lands
Published by Maryparker on December 22nd 2011 | Business
Performing business overseas require bulk transport to foreign companies. Since, owning a ship to tr...
 
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...
 
A guide to help choose the best sheet metal fabrications company
Published by Johnsmith on August 4th 2012 | Business
A reputed fabricator will have capabilities to handle large contracts easily. Each of these stages w...
 
What to do and what not to do being a marketing company?
Published by Marketingspace on July 12th 2012 | Business
Becoming a marketing company associate is a fruitful way of earning money via internet sources. You ...
 
Services and benefits offered by a good trucking company
Published by Edmund Brunetti on April 9th 2012 | Business
If you are looking for freight service, flatbed hauling or any such loading service, then you should...
 
Assure your company’s growth with competent marketing consultants
Published by Marketingspace on May 14th 2012 | Business
Undertaking promotional activities to advertise various products is an essential thing for any sort ...
 
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...
 
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...
 
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...
 
Why MHT is a reputable company in energy saving products
Published by MHT Lighting on July 30th 2012 | Business
MHT Lighting is a lead US manufacturer for energy efficient induction lighting. The company is known...
 
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...
 
Choosing the best dumpster rental company
Published by Travis Killian on July 31st 2012 | Business
There are so many things you need to consider when planning to hire a dumpster rental service. As yo...
 
Your company can save money by buying used forklifts gently opportunities
Published by Bess Briana on April 1st 2012 | Business
Thinking about how the Internet has forced several companies to offer a competitive price. The Inter...
 
When you are to choose forklift hire company
Published by Glyn Spyke Jones on May 8th 2012 | Business
Hiring the forklifts is the best alternative if your own forklift is not working due to some breakdo...
 
Jordans Limited can facilitate all your business registration requirements
Published by Julia Roger on December 6th 2011 | Business
Jordans Business registration couldn’t be simpler. All of the company formations that we manage ar...
 
Get a Absolutely free the apple company I pad Just for Examining It!
Published by Wendy Leung on December 13th 2011 | Business
There are people who neglect out on the capability to be a fanatic for Apple's solutions whenever th...