Full-Fledged Money Changers (FFMC)

Aryan Yadav
June 25, 2024 at 06:03 PM

Introduction

In India, a Private Limited Company is a commonly chosen business entity, governed by the Companies Act of 2013. For entrepreneurs looking to set up a company in India, completing the Private Limited Company registration is essential. This process not only helps establish a solid business foundation but also provides directors with protection through limited liability. To incorporate a company under this law, it must be registered with the Registrar of Companies (ROC), adhering to the rules set forth by the Ministry of Corporate Affairs (MCA).

Dhanvitt provides an economical service that streamlines the Private Limited Company registration procedure, taking care of all legal requirements while ensuring full compliance with MCA directives. Upon successful incorporation, you'll be issued a Certificate of Incorporation along with PAN and TAN documents, enabling you to open a business bank account and start operations efficiently.

What are the different types of Business Structures in India?

Let’s discuss the different types of business structures in India, following is the list of same

1. Private Limited Company: This is the most common and favored form of corporate legal structure in India. A Private Limited Company is privately owned and controlled by shareholders, with a limit of no more than 200 shareholders. The liability in this type of company is similar to that of a Limited Partnership, where a shareholder's liability is restricted to the number of shares they possess. Generally, Private Limited Companies in India do not offer or sell shares to the public on stock exchanges; instead, the ownership is held privately and shares are traded privately.
2. Public Limited Company: This type of company consists of a group of individuals incorporated under the Companies Act. It operates as a distinct legal entity, with the liability of its members limited to the shares they own.
3. OPC or One Person Company: A One Person Company is formed and managed by a single individual. It retains all the characteristics of a company, including limited liability, perpetual existence, and a distinct legal identity.
4. LLP or Limited Liability Partnership: LLP is an alternative business structure that combines the benefits of limited liability, similar to a company, with the operational flexibility of a partnership. While the LLP is liable for its entire assets, the partners’ liability is limited to the capital contribution they have agreed upon.
5. Sole Proprietorship: This is a business entirely owned and managed by one individual, with no partners. It is not legally separate from the business owner, meaning the owner bears full responsibility for the business’s debts and obligations, with unlimited personal liability.

Compliances under Companies Act

In India, a Company which has been registered under Companies Act, 2013 must ensure compliance with the Companies Act, 2013. In India, the Companies Act, 2013 regulates:

• Qualification, appointment, remuneration & retirement of Company’s Directors.
• How to conduct Board & Shareholders Meeting.
• The presentation & preparation of annual accounts and the regular maintenance of books of accounts.

Following are some vital post incorporation compliances:

• Once you get the Certificate of Incorporation, a separate legal entity for the Company is established;
• Once you get the Certificate, within 30 days one of the Company’s Directors must issue the notice for the 1st Board Meeting of the Company and at least 7 days prior to the latter being scheduled for.
• In the 1st Board Meeting, the Company must appoint its 1st Auditor within 30 days of Incorporation by its BoDs or Board of Directors and every Company’s Director shall disclose their concern or interest of other Companies in the Form MBP-1. Moreover, in case of any change in Director’s interest he or she should disclose the change in the next upcoming Board Meeting, also he or she shall disclose in the annual disclosure to be made in the 1st Board Meeting of the F.Y.
• The Company shall on & from the 15th day of its incorporation & at all-time thereafter have a registered office which is capable of getting & acknowledging all official communications & notices as may be addressed to it. Verification of the registered office is to be filled in Form INC-22 within 30 days of Company Incorporation.
• It is compulsory for the Company to have its name board outside its registered office along with Company’s Name, CIN, address, phone number, fax number, email id & website address, if any.
• It is necessary for the Company to have a PAN & TAN right after its incorporation. Even, these are the basic credentials required to open a new Bank Account in India.

Comparative List of Different Business Structures in India