The legal process of forming a company or entity of corporation is called Company Formation or Incorporation. Corporation is always a different legal entity apart from the owners. It can exercise rights and other power on own name. A group of person working as stakeholder, needs to come together to form a legal entity or corporation. An illustration of something incorporated is a few pieces of a business consolidated together to shape a legitimate company. An organization that has recorded consolidation papers with the Secretary of State in one of the 50 states. Fuse restricts the risk of proprietors' misfortunes up to the measure of their venture.
There are many types of company you can incorporate in India:
Private limited company :
A Private Limited Company is a business registration by private entity meant for small businesses. As per the provisions of the Companies Act 2013, there can be a minimum of 2 members and a maximum of 200 members in a company.
Public limited company:
A Public Limited Company offers can be bought by the overall population. The organization should have 3 chiefs and at least 7 investors. In a Public Restricted Organization, there is no restriction on the quantity of offers.
This is one of the various sorts of organizations where deals and activities are taken care of by accomplices. The duties, jobs and the quantity of offers retained by the two people are obviously characterized in the legitimate association arrangement.
One Person Company:
One person company (OPC) is the most recent participant in the various kinds of organizations enlisted in India. It was presented under the Organizations Demonstration 2013, for business visionaries who have the ability to maintain a business without any assistance, yet effectively.
Sole proprietorship is a kind of organization enlistment wherein a solitary individual deals with the whole business activity. The business and the proprietor are treated as one character and he/she exclusively bears the benefit or misfortune made from that point.
Limited liability partnership:
In a Limited liability structured company (LLP) requires at least two accomplices. It is additionally a recently presented corporate business structure that conjoins two terms 'organization' and 'Association Firm’. A LLP is a different lawful element from the association and individual and business resources are recognized.
Section 8 Company:
This kind of organization enlistment is as a Non-Profit Association (NPO). The goal of a NPO is principally to advance expressions, business and different types of social government assistance as training, noble cause, religion and assurance of the climate, to name not many.In India, no business registration can be treated as an organization on the off chance that it isn't enlisted with the recorder of organizations under the Organizations Demonstration 2013. It is simply after enrollment that an organization turns into a different lawful substance from its individuals.
Five advantages of incorporate your company:
- Protect your personal assets
- Have easier access to capital
- Enhance your business capability
- Gain anonymity
- Perpetual Existence.