Business Registration

Private Limited Company

 Private company is a company incorporated under the Companies act, 2013 having separate legal entity, perpetual succession and can sue and be sued by its own name.

Minimum Requirement for Private Limited Company:

•    A minimum number of two Directors who are adults.
•   One of the Directors of a private limited company has to be an Indian Citizen and Indian Resident.
•   The other director(s) can be a Foreign National.
•   It is also required to have two shareholders of a company.
•   The shareholders can be natural persons or an artificial legal entity.

Advantages/Benefits/Merits:

• Separate Legal Entity
• Limited Liability of Members
• Separation of Management and Ownership
• Easy to raise funding
• Perpetual Succession
•  

Public Company Registration

Public Company is a company incorporated under the Companies act, 2013 having separate legal entity, perpetual succession and can sue and be sued by its own name.

Minimum Requirement for Public Company:

•   A minimum number of three Directors who are adults.
•   One of the Directors of a Public Company has to be an Indian Citizen and Indian Resident.
•   The other director(s) can be a Foreign National.
•   It is also required to have seven shareholders of a company.
•   The shareholders can be natural persons or an artificial legal entity.

Advantages/Benefits/Merits:

• Separate Legal Entity
• Limited Liability of Members
• Separation of Management and Ownership
• Easy to raise funding
• Perpetual Succession
• Easy transferability of ownership

One Person Company Registration

One Person Company is a company incorporated under the Companies act, 2013 having separate legal entity, perpetual succession and can sue and be sued by its own name.

Minimum Requirement for One Person Company Registration:

•   A minimum one Director who is adult.
•   Director of a one person company has to be an Indian Citizen and Indian Resident.
•   It is required to have only one member of a company.
•   The shareholder can be natural person or an artificial legal entity.
•   A nominee is required to be nominated by sole member for succession in case of death or lunacy of sole member.

Advantages of One Person Company Registration

• Separate Legal Entity
• Limited Liability of sole member
• Separation of Management and Ownership
• Perpetual Succession
• Lesser Compliances

Section 8 company registration

Section 8 company is most appropriate for non-profit/NGO related objectives such as promotion of commerce, art, science, sports, education, research, social, welfare, religion, charity, protection of the environment, etc.. The process of registration of section 8 company is just like normal company registration in India with an additional requirement of a license from the central government under section 8 of the Companies Act, 2013.

Minimum Requirement for Section-8 Company registration:

•   A minimum number of two Directors who are adults
•   One of the Directors of a section 8 company has to be an Indian Citizen and Indian Resident.
•   The other director(s) can be a Foreign National.
•   It is also required to have two shareholders of a company
•   The shareholders can be natural persons or an artificial legal entity.
•    Mandatory to have charitable object.

Advantages of Section-8 Company Registration

• Separate Legal Entity
• No Minimum Capital Requirement
• Suffix in Name
• Tax Advantages:
• Exemption to the donors:

Documents required to register a Company

1. Documents from Directors and Shareholders

A. Identity Proof

1) Permanent Account Number (PAN) Card

2) Aadhaar Card / Passport / Driving License / Voter Identity Card

B. Address Proof

1) Telephone Bill / Mobile Bill*

2) Electricity Bill / Water Bill*

3) Bank Statement /Bank Passbook with latest transaction* 

*(Any one of the Document not older than 2 months)

C. Passport size Photographs

Notes:

• All the Copies of documents must be Self-Attested by the applicant.
• Telephone Bill / Mobile Bill/Electricity Bill / Bank Account Statement must be in the name of applicant and should not be older than 2 months.
• In case of NRI or Foreign National, documents of director (s) must be apostilled.

2.  Registered Office – Address

a) No-Objection letter from the Owner of Address to use the address of the registered office of the Company.

b) Address Proof – In the name of the Owner

• Electricity Bill, Telephone Bill (Fixed Line Only), Gas Bill or Water Bill (Not older than 2 months);- To be signed by the of the Owner of Premises

c) Rent Agreement (if rented)

Steps of Incorporation of a Company:

• Preliminary Requirements

1. Select a suitable package.
2. Provide basic details & documents required for Incorporation.
3. Make Payment through Secured Payment Gateway 

• Registration

1. Application for DSC
2. Application for Name approval
3. Drafting of documents (MOA, AOA, DIR-2,etc)

• Registered on MCA*

1. Issuance of COI, PAN, TAN by MCA.

*Company will be registered with 10-12 working days subject to the MCA processing and approval.                        
 

LLP Registration

In India, Limited Liability Partnerships became popular after the enactment of the Limited Liability Partnership Act in the year 2008. Many start-ups and small businesses chose this form of partnership over the traditional form of partnership and company as it offers the advantages of both the partnership and company.

The leading edge of an LLP is one partner is not responsible for the other partner's wrongdoing or negligence. Professionals, Micro and Small enterprises prefer to form LLP for their business. LLP offers the benefit of limited liability towards owners and, at the same time, needs minimum maintenance.

Minimum Requirement for Limited Liability Partnership:

  A minimum number of two Designated partners who are adults.

  One of the partners of a Limited Liability Partnership has to be an Indian Citizen and Indian Resident.

  The other partner(s) can be a Foreign National.

  The partners can be natural persons or an artificial legal entity.

Benefits of Forming an LLP

There are many benefits to run a business by constituting as an LLP which is outlined below:

• Dual advantages- Partnership with features of a company
• No partner can be responsible for another partner's misconduct
• Less expensive to incorporate than a private limited company
• Limits the liabilities of its partners
• Can raise funds from partners, banks and NBFCs

Documents required to register a Limited Liability Partnership

Documents from Partners / Designated Partners

Identity Proof

  Permanent Account Number (PAN) Card

  Aadhaar Card / Passport / Driving License / Voter Identity Card

Address Proof

  Telephone Bill / Mobile Bill

  Electricity Bill / Water Bill

  Bank Statement /Bank Passbook with latest transaction

*(Any one of the Document not older than 2 months)

Passport size Photographs

Notes:

• All the Copies of documents must be Self-Attested by the applicant.
• Telephone Bill / Mobile Bill/Electricity Bill / Bank Account Statement must be in the name of applicant and should not be older than 2 months.
•  In case of NRI or Foreign National, documents of partner(s) must be apostilled.

Registered Office – Address

•   No-Objection letter from the Owner of Address to use the address of the    

   registered office of the Company.

•   Address Proof – In the name of the Owner:
  Electricity Bill, Telephone Bill (Fixed Line Only), Gas Bill or Water Bill (Not older than 2 months);- To be signed by the of the Owner of Premises.
•   Rent Agreement (if rented)

Partnership Registration

Partnership is an association two or more persons who have mutually decided to carry out business activities jointly and to share its profits as well as losses.

Minimum Requirement for Partnership firm:

  A minimum number of two partners who are adults.

• One of the partners of a Partnership firm has to be an Indian Citizen and Indian Resident.
•   The other partner(s) can be a Foreign National.
•   It is voluntary to register a partnership firm in the Indian Partnership Act, 1930

Advantages of Partnership firm Registration

• Easy Formation
• Flexbility
• Secrecy
• Credit-worthiness

Documents required to register a partnership firm

• ID Proof Of All Partners Like Pan Card, Aadhar Card (Uid), Passport, Driving Licence, Election Id Card, Etc 
• Current Office Address Proof Like Valid Rent Agreement, Property  Document, Noc From The Landlord (If Rented) 
•  Five Suggested Names 
•  Nature Of The Business 
•  Details of proposed business
•  Details of capital contribution and profit sharing ratio.

A sole proprietorship (also known as individual entrepreneurship, sole trader, or simply proprietorship) is a type of unincorporated entity that is owned by one individual only. It is the simplest legal form of a business entity.

Features of Sole- Proprietorship:

•  One man ownership.
•  Less formalities.
•  No Separation between ownership and management.
•  All profit or losses to the Proprieter.

NGO Registration

A Non-Governmental Organization (NGO) is a not for profit organization formed by a group of individuals, voluntarily, with the motive for working for a charitable and social cause.

Procedure for NGO Trust registration

Step 1: You are required to fill your details in our simple online questionnaire.

Step 2: We will assist you in gathering the pre-requisite documents

Step 3: Based on the details provided by you for Trust Deed registration, a Trust deed will be compiled

Step 4: The trust deed so compiled will be submitted to the relevant local registrar for registration

Step 5: Once your Trust NGO is registered, we shall send you Trust Deed via courier.

Trust: One of the most common and simplest ways in which an NGO can be registered is Trust. Trust is a legal entity created by the “settlor” who transfers the assets to the second party or “trustee” for the benefit of the third party known as “beneficiary”. Trusts are registered to support the underprivileged and deprived sections of the society. Any group of individuals ca register a trust.

Trust Registration Process

Introduction

In order to register Trust, organization needs to be in compliance with the Indian Trusts Act, 1882. Following the act, there are a few pre-requisites that an organization needs to be ready within order to form the Trust. Here are the pre-requisites:

• Name for the Trust
• Registered Address dedicated for the Trust
• Objects/Objectives of the Trust
• One seller of Trust
• Two Dedicated trustees of Trust
• Property (Movable or Immovable) of the Trust

Once, all the pre-requisites are ready, and just put together in a Trust Deed. We at MAG provides best services for Trust Registration in Delhi.

To make a trust deed, the following information needs to be furnished:

• The deed should be done on a stamp paper of given value
• The passport size photographs and the identity proof of the seller
• The passport size photographs and the identity proof of the 2 trustees
• The passport size photographs and the identity proof of the 2 witnesses
• The seller's signature on all pages of deed
•  
• Documents Required for Trust Regisration
• Identity proof such as Voter ID, Driving License, Adhaar Card, Passport of minimum of two members.
• Two photographs of which one must be of passport size 
• Copy of the ID proof of the settlor
• Copy of the ID proof of each of the two witnesses and their photographs
• Proof of registered address such an electricity or water bill
• Schedule (application for registration along with Court Fee INR 100 affixed to it)
• Trust Deed on stamp paper of the requisite value
• Consent Letter signed by all the trustees
• Affidavit/Declaration signed by the settlor (it is to be handed over on the day of the Hearing, with INR 10/- court stamp fee
• One passport size photo & ID proof copy of the three settlor
• One passport size photograph & ID proof copy of each of the two witnesses
• Electricity, Utility bill of the registered address
• No Objection Certificate (NOC) from the property’s owner (trustor) that is proposed as the Registered Address for the Trust
• Signature of the three settlers on each page of the Trust Deed

Societies: A society is an entity that can be created by an association of individuals united in their cause for promoting science, arts, literature, social welfare and useful information. Societies are governed by the Societies Registration Act, 1860. They must be registered with the respective state Registrar of Societies to be eligible for tax exemption.

Documents for Society Registration

• PAN Card of all the members of the proposed society has to be submitted along with the application.
•  The Residence Proof of all the members of the society also has to be submitted. The following can be used as a valid residence proof:

1. Bank Statement
2. Aadhaar Card
3. Utility Bill
4. Driving License
5. Passport

•  A covering letter mentioning the objective or the purpose for which the society is being formed will be annexed to the beginning of the application. It will be signed by all the founding members of the society.
•  A copy of the proof of address where the registered office of the society will be located along with an NOC from the landlord and utility bill of that address, if any has to be attached.
•  A list of all the members of the governing body has to be given along with their signatures.
• A declaration has to be given by the president of the proposed society that he is willing and competent to hold the said post.

SECTION 8 COMPANIES: The objectives of a Section 8 Companies are to promote arts, science, commerce, sports, social welfare, religion, charity and environmental protection. They are registered under the Companies Act, 2013 for charitable purpose. They have better credibility among government bodies, donors and other stakeholders.

Section 8 Company Registration has higher credibility amongst donors, Government departments and other stakeholders.
 
Incorporation of the Section 8 Company is similar to Trust or Society or NGO Registration, but Section 8 Company is registered under Central Government's Ministry of Corporate Affairs whereas the Trusts and Societies are registered under state government norms and regulations.
 
Registration procedure of a Section 8 Company is that of similar to private /public company as the case may be except additional requirement of taking license from Central Government after name approval. We at MAG provides best services for NGO Registration in Delhi.

Documents Required
 

• Self-attested copy of the PAN Card of all the proposed directors.
• Self-attested copy of ADDRESS PROOF (Voter ID/DL/Passport/Aadhar Card) of all the proposed directors.
• Self-attested copy of the Bank Account Statement/Electricity Bill/Mobile Bill of all proposed directors.
• 4 Photographs of passport size of all proposed directors.
• Duly signed DSC Form of all the directors of proposed company.
• Copy of the current Electricity Bill/Water Bill/House Tax  for the proposed premises to be used as the registered office for the proposed company.
• If the property is rented, then the Rent Agreement and NOC from the owner of the property.

Information Required Concerning Section 8 Company Registration

Directors Detail:

• Educational qualification of all the directors.
• Profession/occupation of all the directors with an area of operation
• Citizenship along with the residential status of all directors
• Place of birth of all directors
• Permanent & the present residential status of all directors
• Mobile numbers of all directors
• Email IDs of all directors

NON BANKING FINANCIAL COMPANY

Nonbank financial companies (NBFCs), also known as nonbank financial institutions (NBFIs), are financial institutions that offer various banking services but do not have a banking license. Generally, these institutions are not allowed to take traditional demand deposits—readily available funds, such as those in checking or savings accounts—from the public. This limitation keeps them outside the scope of conventional oversight from federal and state financial regulators.

KEY TAKEAWAYS

• Nonbank financial companies (NBFCs), also known as nonbank financial institutions (NBFIs) are entities that provide certain bank-like financial services but do not hold a banking license.
• NBFCs are not subject to the banking regulations and oversight by federal and state authorities adhered to by traditional banks.
• Investment banks, mortgage lenders, money market funds, insurance companies, hedge funds, private equity funds, and P2P lenders are all examples of NBFCs.
• Since the Great Recession, NBFCs have proliferated in number and type, playing a key role in meeting the credit demand unmet by traditional banks.

Documents Required for NBFC Registration With RBI 

1. Certificate of Company Incorporation.
2. Detailed information about the management along with a brochure of the company.
3. A copy of PAN/Corporate Identity Number (CIN) of the company.
4. Documents related to the office location/address
5. Certified copy of the Memorandum of Association (MoA) and Articles of Association (AoA).
6. List of Directors’ profile duly signed by each director must be attached.
7. CIBIL/credit reports of the Directors of the Company are required.
8. A copy of the board resolution which certifies that the company has not carried out or stopped NBFC activity and will not carry any until the registration from RBI is granted.
9. A board resolution on ‘Fair Practices Code’ is to be passed and a certified copy of the same is to be submitted.
10. Certificate issued by the statutory auditor stating that the company is not holding the public deposit and does not accept it as well.
11. Certificate specifying owned funds as on the date of the application from the Statutory Auditor is required.
12. Information regarding the bank account, balances, loans, credits, etc. is to be furnished.
13. If applicable, audited balance sheet and profit and loss statement along with the directors and auditors report of the preceding three years has to be submitted.
14. Self-certified copy of the bank statement and Income Tax Returns is required.
15. Information detailing the company’s future plan, generally for the next 3 years, along with the projection of balance sheets, cash flow statement and income statement.

Foreign Company

Foreign company means a company or a body corporate incorporated outside India which—

* is having a place of business in India whether by itself or through an agent, physically or through electronic mode; and

*  is conducting any business activity in India in any other manner.

So, it can be concluded that the mere visual presence of a foreign company doing business in India falls under the ambit of this definition.

Indian subsidiary of foreign company is any company where 50% or more of its equity shares are owned by a company that is incorporated in another foreign nation. The said foreign company in such a case is called the holding company or the parent company.

It is to be noted here that as per the Companies (Registration Offices and Fees) Rules, 2014, any document which foreign companies in India are required to deliver to the Registrar is to be delivered to the Registrar of New Delhi irrespective of where it operates its business in India.

How to register a foreign company in India? What is the procedure for foreign company registration in India?

After establishing a place of business in India, for the purpose of foreign business registration, a foreign company is required to file a form (FC-1) with the registrar (within 30 days) and deliver to the registrar certain documents-

a) its charter documents (in English);

b) address of the registered/principal office of the company;

c) a list of all the directors and secretaries;

d) the name(s) and address(es) of the person(s) resident in India and authorised to receive all notices or other documents on behalf of the company;

e) address of the place of business in India;

f) details of opening and closing of a place of business in India on an earlier occasion(s);

g) declaration that no director of the company or the authorised representative in India has ever been or is convicted or debarred from forming the companies and management in India or abroad; and

h) any other details

On the successful filing of this form, a Foreign Company Registration Number will be generated, and a certificate of registration will also be given to the company.

The list of directors and secretaries shall contain the following information about the directors-

* full name

* any former name or surname

* father's / mother's name

* spouse's name

* date of birth

* residential address

* nationality (current and of origin if any)

* Income tax PAN (if any)

* occupation

* directorship details in other companies

* Membership Number (for Secretary only)

* passport number, date of issue and country of issue

* email id

We at MAG, have a professional team to provide the best foreign company registration services in India.

How alteration in the documents of Foreign Company's place of business is made?

If any alteration is being made in the documents mentioned above, the company must intimate about the changes to the Registrar within 30 days of such changes being made. This intimation is to be made by filing Form FC-2. The attachments (in English) required are-

1) Certified copy of the Board resolution, if any

2) Copy of the resolution passed in General Meeting

3) Copy of approval letter (if any approval is required for such alteration).

4) Particulars of alterations in the place of business in India of the company

5) Particulars of alteration in details of the directors or secretaries

6) Particulars of alterations in details of the company authorised representative

7) Any other information can be provided as an optional attachment(s).

Branch Office

branch office is a suitable business model for foreign companies looking to establish a temporary presence in India. The branch office serves as an extension of the head office business and carries on the same business and activity as that of its parent company.

Most businesses use this mode to learn more about the Indian market without having to make a long-term commitment. Accordingly, businesses that are looking to expand into Asia or diversify their Asia presence should consider whether a branch office meets their market entry requirements.

Conditions for setting up a branch office

Businesses that would like to set up a branch office in India need to meet the following conditions:

• The applicant company must be a body corporate incorporated outside India;
• The name of the Indian branch office must be the same as the parent company (if the branch office does not have revenue from India operations, its expenses must be met by the head office);
• The net worth of the branch office must not be less than US $100,000; and
• The parent company should have a profit making record in the immediately preceding five financial years in the home country.

In cases where the applicant foreign entity does not meet the financial criteria, the parent company may issue a Letter of Comfort (LoC), given the company satisfies the prescribed criteria for net worth and profit.

Permitted activities

In India, a branch office cannot directly carry out manufacturing activities unless such manufacturing activity is done in a special economic zone (SEZ) with the purpose of exporting products out of India. It may also sub-contract such activity to an Indian manufacturer.

Furthermore, a foreign company must me engaged in trading and manufacturing activities in its home country in order to set up a branch office in India for engaging in the following activities:

• export or import of goods;
• rendering professional or consultancy services;
• research work;
• representing and acting as buying or selling agent for the parent company.

How to register a branch office in India

To open a branch office in India a foreign company must apply for approval from the Reserve Bank of India (RBI) under provisions of the Foreign Exchange Management Act (FEMA), 1999.

Foreign entities whose principal business falls under sectors where 100 per cent foreign direct investment (FDI) is permissible under the automatic route must complete the form FNC and submit it to the RBI, along with the associated documents.

For other sectors, the form must be submitted to the Ministry of Finance. In this case, the application for establishing branch office must be forwarded by the foreign entity through a designated AD Category – I bank to the RBI.

If the foreign entity wishes to establish a branch office in more than one location in India, it must register the branch, or seek approval from the RBI for each of the location separately. The RBI approval is also necessary for each activity the branch office intends to undertake in India.

The procedures for registration requires a foreign company to deposit the following set of forms:

• FNC form duly signed by AR;
• Information about the parent company along with its certificate of incorporation attested by a Notary Public or the Indian Embassy in the country of registration;
• The incorporation documents of the branch office to be established in India;
• Proof of registered office;
• Note on location or proposed activity;
• The latest audited balance sheet of the applicant entity;
• Board resolution to open a branch office;
• KYC of the authorized signatory; and
• Information about the local representatives of the parent company in the branch office.