5 Things You Need to Know Before Incorporating a Company
By Team Legistify / 2017-03-03
A business needs to be incorporated to give it its own legal identity, separate from its owners. Read about 5 things that a startup must know about Business Incorporation in India.

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The biggest secret of the rich is playing through corporations ”, says Robert T. Kiyosaki in his world famous book series Rich Dad Poor Dad. Only businessmen know the benefits they reap from incorporating their venture.

The type of company one wants to incorporate must be decided as per requirements of the trade, the capital pooled in, and other such factors. If you are just starting a business is small, you may wonder why do you need to bother about incorporating your business at such an early stage. Read our blog to find out!

Types of Companies in India

In India, there are 3 types of companies:

  • Private company : A Private Limited Company has a minimum paid-up capital of Rs. 1 Lakh. It has minimum 2 members and maximum 200 members. It can be started by only 2 persons, and its name ends with ‘private limited’.
  • Public company : A Public Limited Company has a minimum paid-up capital of Rs. 5 Lakhs. It has minimum 7 members, and no maximum limit has been prescribed. It has minimum 3 directors and its name ends with ‘limited’.
  • One Person Company: In a One Person Company , one man practically holds the whole of the share capital, and other members are just to fill in the statutory requirements of the minimum number of members. Companies Act, 2013 recognizes this form of a company.
A business needs to be incorporated to give it its own legal identity, separate from its owners. Read about 5 things that a startup must know about Business Incorporation in India.

Have a Legal Issue?

Get connected to the Best Lawyers and Chartered Accountants Near You!


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