Today, there are many people who set up their own companies every year. Some people do it because they want to work for themselves while others do because they have a great idea. Setting up a company in accordance with the Companies Act 2013 is said to be the most credible form of business. A company is described as a voluntary association and has its separate legal entity which is different from Shareholders, Managers and Directors. When it comes to the liability of the shareholders of the company, it is limited to the amount of shares they hold. According to the act, every company needs to appoint an auditor and should maintain books of accounts. In addition, it should arrange annual general meeting and should also file the annual returns annually.
Mainly, there are 3 Types of Companies that are Explained Below:
- Public Limited Company: It is a company which is not a private company. At least seven members and three directors are required to set up a public company. Other than this, the minimum paid up capital should be Rs.5 Lakh.
- Private Limited Company: It is a company that has a minimum paid up capital of one lakh rupees. In order to form this company, at least two directors and two or more than two members are required. This company can have a maximum of 200 members and is not allowed to accept public deposits and cannot invite the general public to subscribe its shares and debentures.
- One Person Company: This is a completely new form of business in India. This company can have at least one person and maximum fifteen directors. If there is only one director in the company then a nominee needs to be appointed and the name should be mentioned in the MOA & AOA. It needs to add the word OPC after its registered name.
Anyone who proposes to be the director of the company needs to complete some basic requirements. He should have an 8 digit unique code; Director Identification Number registered in his name. Talking about the basic requirements, choosing the company name by keeping the necessary information in mind is very important. Choose the name while going through the checklist, it should be unique and shall represent the nature of the company. On the other hand, the name should not be similar to the name already exist and in some cases it should be approved by the by the Stock Exchange Board of India.
Deciding the place of the registered office is also one of the most important perquisites, which should be according to the Companies Act. As it is a place which is the official address of the firm. In other words, where the company proposes to work and receives all the formal notices from the investors, government departments, shareholders, public or any other authority. While selecting the place for your registered office you should remember the convenience of the management and administration. By taking the help of a renowned registration service provider you can set up your company in a hassle free manner.
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