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Incorporation of Public Limited Company

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    Fastest & Easiest way to Form Company in India

    Incorporation, the procedure for forming a company, involves registering the business with the Companies Act of 2013. Many Indians desire of starting their own business or firm, and becoming registered with the MCA is a major matter. of company formation, private limited companies, public limited companies, and limited liability companies. Company registration in India is handled by the registrar of companies under the jurisdiction of the Ministry of Corporate Affairs or MCA. Even though company formation or the process for incorporation of a company is quite simple. But you need ca and cs guidance to carry out the company formation procedure in India. Kaushalya consultancy will help in the registration and formation of all types of companies in India. For a company, the formation chooses at least one appropriate name for the new company, with the other six possibilities reflecting the goals of the company.

    If you are forming a company online, then Log on to the MCA website (http://www.mca.gov.in/MinistryV2/easeofdoingbusiness.html), complete the form, and add the necessary information requested in the eForm. The company identification is generated once the forms and online documentation are submitted and complete. You will obtain the corporate certificate from RoC.

    Common Types of Company Formation in India in 2022

    There are various types of companies that can be formed and registered in India:

    • Sole Proprietorship
      1. A sole proprietorship is a form of business in which one person owns all the assets of the business, in contrast to partnerships or corporations.
      2. No legal formalities are required to create a sole proprietorship other than appropriate licensing to conduct a business and registration of a business name if it differs from that sole proprietorship.
      3. The owner reports income/ loss from this business along with his income tax return.
    • One Person Company (new company formation introduced)
      1. The Company’s Act 2013 enables the formulation of a new type of entity i.e. One Person Company (OPC) An OPC means a company with only 1 person as a member.
      2. Shareholders can make only 1 nominee, who shall become a shareholder in case of death/incapacity of the original stakeholder.
    • Private Limited Company (the most registered company)
      A private company is a company that has the following characteristics: 
      1. Shareholders’ right to transfer shares is restricted.
      2. A minimum number of 2 members in the company.
      3. The number of shareholders is limited to 200.
      4. An invitation to the public to subscribe to any shares or debentures or any type of security is prohibited.
    • Public Ltd Company
      A public company is a company that has the following characteristics: 
      1. Shareholders’ right to transfer shares is not restricted.
      2. Minimum 7 shareholders.
      3. Publishing a prospectus becomes mandatory in case of public issues.
    • Section 8 Company
      1. A company established for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object’, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members.
      2. Registered under the Central Government’s MCA
    • Partnership firm
      1. Partnership firms are created by drafting a partnership deed among the partners. The partnership deed is registered to make a firm.
      2. Partnership firms in India are governed by the Indian Partnership Act, 1932.
      3. The Profit & Loss are shared in a manner as agreed in the partnership deed.
      4. The maximum no. of partners in a partnership firm can be 20.
    • Limited Liability Partnership (LLP)
      1. LLP is an alternative corporate business entity that provides the benefits of limited liability of a company but allows its members the flexibility of organizing their internal management on the basis of a mutually-arrived agreement, as is the case in a partnership firm.
      2. Introduced in India by way of the Limited Liability Partnership Act, 2008.

    The benefits of forming a business in India

    The advantages of registering a company are numerous. Having a license makes a business legitimate and raises its credibility.

    • It protects against responsibilities for others as well as hazards and damage.
    • Helps gain customers while also promoting goodwill.
    • Offers dependable bank credit to clients, making it simple to make investments.
    • It includes the need to protect the company’s assets.
    • Greater stability and a stronger commitment to wealth
    • Increase the ability to expand and grow huge.

    How to Form a New Company: Steps to Follow

    Procedures to follow in order to incorporate a new business:

    • Choose a minimum of one good name and a maximum of six names that reflect the major goals of the business, in that order of preference.
    • Use the facilities of checking name availability on the site to make sure the name does not match the name of any other company that has already been listed and does not also violate the prohibitions of emblems and names (Prevention of Improper Use Act, 1950).
    • Apply to the concerned RoC (Registrar of Companies) by logging into the portal to check if the name is available in eForm1 A. Along with paying the money, the applicant proposing the firm must attach their digital signature to the application form. If the suggested name is not available, the user must submit a new application with a different name.
    • Within 60 days of the name being approved, the applicant may submit the necessary forms (Forms 1, 18, and 32) to register the new company. Get AOA & MOA articles by a lawyer approved by the RoC, Stamp duty applied and printed.
    • Get all the MOA and the AOA signed in his or her own hand by at least two subscribers, the father’s name, employment, residence, and the number of shares subscribed for, and have at least one person witness the signatures.
    • Sign in to the website, complete the following forms, and upload the necessary files with digital signatures (Forms 1, 18, and 32).
    • Obtain the Certificate of Incorporation from RoC when the Form has been processed and a Corporate Identity has been generated.

    How to Form a New Company: Steps to Follow

    A business enterprise becomes a legal entity with the ability to enter into binding contracts with the printing of the Certificate of Incorporation. A private company must also get a Certificate of Commencement of Business before it can launch its operations after receiving the Certificate of Incorporation.

    For the purpose of formation, a public organization must pass through two further levels.

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      Frequently Asked Questions

      The process of incorporating a business is called company formation. When a company is incorporated, it becomes a distinct legal entity; a "person" that is independent of its owners and in change of its own money, assets, and debts.

      1. Name approval
      2. AOA and Moa agreements
      3. Capital requirements for shares
      4. Shareholders
      5. The selection of directors
      6. Registered address
      7. Time required to register a firm

      Yes, two people are needed to formally incorporate a one-person business or sole proprietorship. 

      The MCA's recent modifications have made it simple to register and form any type of company with the government. The process of registering your company properly can take between 10 and 15 days, provided that all of the necessary documents are in order.

      A company may be established as either a for-profit or  a non-profit organization. They are created to bring in money and give back to their shareholders in proportion to their ownership stakes in the company.


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