A company is a legal entity having a perpetual existence independent of its promoters, and is a corporate body having a common seal, has right to hold/sell/buy the property in its own name. A company can be formed in the form of a Private Limited Company, Public Company (Listed or Unlisted), OPC (One Person Company).
This further means that the business setter needs to further decide the type of company one wishes to form. The compliance part in the private limited company is less as compared to a public company, hence it is usually recommended to start with the private limited company. It must have two people as the shareholder and director, who can be the same persons. However one of the directors must be resident in India.
It is required to select a right type of company structure as there are different levels of compliances for every type of company structure.
Private Limited Company is the best corporate structure to start your own business. It can be registered with minimum two members and maximum with two hundred members. The private limited company is juristic, and the liability of members is limited to their shares. The private limited company can be registered within 7-10 days. A private limited company must hold a board meeting and file annual returns with MCA (Ministry of Corporate Affairs). The private limited company has more credibility than an LLP or General Partnership. Venture capitalist and Angel investor prefer to invest in a private limited company. Approximate every year, more than 100,000 companies registered India.