How to register for a firm in India Business is the medium through which a person is able to take care of himself and the people working with him to earn his livelihood. There are many business opportunities in India. For example, means of transport, raw materials etc. are easily available in most of the places here. Due to which business has developed well here. Gradually, there seems to be an increase in business, and now business has become such a work that one has to study commerce to understand it. New educational establishments are seen doing this work, which study and teach this subject.
How to Register for Firm in India?
How to register for a firm in India in hindi
What is a Firm? (W)hat is Firm)
A form is a business organization, which earns profit in the form of money by selling products or providing a particular kind of service. A firm may be under one or more than one entity. One or more forms coming from the same organization use the same EIN number. The term “firm” is originally used for business entities that are concerned with legal processes. Apart from this, the word firm can also be used for different business institutions. Sometimes these words are also used in place of “business” or “enterprise”.
The main objective of the form is to increase the economic profit of the organization. This fact changes with the change of time and place of business. On the basis of new facts, firms have become of two types, first those which are formed to run for a long time, and secondly those whose main objective is to earn economic profit, such forms are also for short duration.
Its different forms (Ddifferent types of firms
There are several types of firms based on the ownership structure. A firm can also depend on only one man who runs it, pays its cost out of his own pocket and bears all the responsibility of that firm on his shoulders for profit and loss. It is also commonly called “soul proprietorship” or “soul trade”.
Similarly, a firm can be run by two or more people. Like sole trade, in this type of firm also all the responsibilities and costs are on the partners taking proprietorship. In this firm, the partners divide the economic profit among themselves in a certain percentage. Many people can be partners in a firm.
There is another form of firm which is called corporation. It works as a separate framework, in which economic liability and personal liability are divided and limited from each other. In such a firm, the owner is free from any financial or legal obligations. A firm corporation can be any individual or business entity, under the government etc. A firm is said to be a company when it is operated by more people.
Co-operative is also a form of firm. All the owners of the co-operative have their own limited liability, and in this the investors play the same role as their role in the company.
Ways to Register in the Firm (Pprocess of registration of firm)
To establish any organization, first of all, some official procedures have to go through. It is very important to register any firm before running it because it does not present any legal problem during the running of the firm. India is a land of opportunities, every kind of business goes on here. There are about 7 lakh registered companies in India. Every month thousands of new firms apply for registration. Under Section 3 of the Companies Act, a company means a legal entity registered under the Companies Act 1956. There are two types of companies in this act which are called private company and public company. “Limited” is the most common title that is often used at the end of the names of many companies.
This is the first step, after that now it comes to that stage which is very important for the registration of any company. In this phase the name of the company, its address, company directors etc. are registered.
- After submitting the application form, the MCA ministry gives the applicant four different forms of the company name, from which one has to choose.
- After this, Form-18 has to be filled, which contains the details of the office position of the company.
- In Form-32, the director, manager and secretary of the new company are elected.
- Once these forms are filled and approved, an authentication e-mail is received by the MCA.
To get the name of the company, Form-1A has to be filled with the Registrar of Companies (ROC). Its fee is only 500 rupees. Four names have to be given for the name of the company. Two companies cannot be registered in the same name under the 1950 Act. Within 10 days, the response to approval or rejection is received from the ROC. If rejected, the ROC may suggest some new names.
Note – Before submitting all the above documents, check once again. After that get TAN card, PAN card in the name of your company.
Difference Between Private and Public Company (D)ifference between public company and private company)
- The number of board members in any private company is 2, while for a public company this number becomes 7.
- Any private company can have a maximum of 50 members, whereas in a public company the number of these members can be any.
- A private company can start its business even though it is “incorporated” but a public company cannot start its business until it gets the “Business Completion Certificate”.
- A private company should not sell its shares to anyone, whereas a public company can.
- A private company should have two directors and a public company at least three.
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