Business registration is a requisite when setting up a business, particularly when the company is a private or public limited company. Limited companies are registered and incorporated under the Companies Act 1956 with the Registrar of Companies (ROC).

The exact procedure to registration with the companies act entails the candidate to file an application with the ROC, duly furnishing the name of the company, Memorandum of Association (MOA), Articles Of Association (AOA) among other documents. All these documents need to be submitted online through the website of the Ministry of Company Affairs.

A company can be registered as a private limited company or public limited company, as per the Companies Act 1956. A private limited company has a minimum paid up capital of Rupees One Lakh. The number of members can vary between 2 to 50. Accordingly transfer of share is restricted to maintain the maximum number of 50 members at any point of time. The term member does not include employees of the company at any point of time. The General public cannot subscribe to shares or debentures of a private limited company. On similar lines, invitation or acceptance of deposits from any person except members or director’s relatives is strictly prohibited.

A public limited company, on the other hand, has a minimum paid up capital of Rupees five lakhs distributed among at least seven members with no upper limit. Unlike in private limited company, shares and debentures of a public limited company may be quoted in the stock exchange and are freely transferable.