There is no mechanism provided by the Government of India for the registration of a Proprietorship. There is also no State or Central Government Authority governing the registration or operations of Proprietorships in India. Therefore, the existence of a proprietorship can be established through one or more tax registrations and business license. For instance, MSME and GST Registration can be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a Sole Proprietorship.
As there is no procedure for registering the name of a Sole Proprietorship business, any other person can also use the same name for their business. However, in case a Proprietor wishes to protect the business name and the name is unique, a trademark registration can be obtained for the business name.
A partnership firm can be registered under Section 58 of the Indian Partnership Act at any time, even subsequent to the formation. The registration of a partnership firm is done through the Registrar of Firm in which the partnership firm is situated. When the Registrar of Firms is satisfied that the provisions of Section 58 are complied with, a record of entry of the statement is made in the Register of Firms and Certificate of Registration is issued.
A limited company grants limited liability to its owners and management. Being a public company allows a firm to sell shares to investors this is beneficial in raising capital. A minimum of three Directors are required for establishing a Public Limited Company and it has more stringent regulatory requirements compared to a Private Limited Company.
Public Limited Companies are those types of companies where minimum number of members is seven and there is no cap on the maximum number of members. A public limited company has most of the characteristics of a private limited company. A public limited company has all the advantages of private limited company and the ability to have any number of members, ease in transfer of shareholding and more transparency. Identifying marks of a public limited company are name, number of members, shares, formation, management, directors and meetings etc.
Private Limited Company is the most prevalent and popular type of corporate legal entity in India. The Ministry of Corporate Affairs governs private limited company registration in India. Companies are incorporated and regulated under the Companies Act, 2013 and the Companies Incorporation Rules, 2014. ATE can help you with company registration across India at a very affordable price point.
Shop Act Licence (Gumasta License) is a registration required for doing any kind of business in the state of Maharashtra. It is governed by the Municipal Corporation of Mumbai under the Maharashtra Shops and Establishment Act. This is a certificate which provides you the authority to do your business at a particular place. This license is a basic requirement for any business to be recognized by Government or Bank for all business irrespective of whether it is done by a single person or a big organization.