When registering a company, you may have noticed that in order to do so, you have to provide an age range of the company's members and Co-founders. This is because there are different minimum ages for companies depending on what kind of business they're in.
A company can be registered by an individual, partnership firm, or a company limited by shares. All entities, including individuals and companies, need to Company registration of their respective entity with the Registrar of Companies (ROC). The ROC will provide all the necessary documents in support of application and also check if all the required formalities have been completed. Once the company is registered with ROC, it becomes operational from the day it is registered.
Types of Company Registration
There are a few types of company registration in India. The most common type is the private limited company. A private limited company is a type of company which is registered under Indian Companies Act, 1956. It can have up to 100 shareholders and can carry on business only with the written consent of its shareholders. A public limited company is another type of company which can be registered under Indian Companies Act, 1956. A public limited company can have more than 100 shareholders and can carry on business with the written consent of its shareholders and the government.
How to Register a Company?
If you are planning to start a business in India, you will need to first register your company with the appropriate authorities. However, certain requirements must be met before registering your company, including having a valid business license and registered address. Additionally, you will need to provide information on your company’s officers, shareholders, and employees. Once your company is registered, you will need to file periodic reports with the relevant authorities.
Qualifications for Company Registration
Minimum age to register a company in India is 18 years. The process of registering a company can be done through the online portal of the registrar of companies or through an authorized private registrar. Following are some of the mandatory requirements that a company must meet before making private limited company registration online:
- incorporation documents must be filed with the registrar of companies;
- the name of the company must not violate any law or regulation in force;
- all members of the board of directors and management must be registered with the registrar;
- minimum capital required to start a company is ₹ 10 lakh (US$150,000).
What Is the Minimum Age to Register a Company?
The minimum age to register a company in India is 18 years. You should also have a minimum net worth of ₹5 lakh to start your company or ₹10 lakh for setup as a LLP (limited liability partnership).
In case you have less than ₹1 lakh as bank balance, you would need to take the help of an incubator/incubator firm that can guide and finance you on the way to starting up your company.
Why Is There a Minimum Age in India?
Minimum age to register a company in India is 18 years. This is mandated by the Companies Act, 2013, which sets the minimum age requirement for companies as well as individual directors. The aim of this rule is to ensure that the young minds of the country are engaged in businesses and entrepreneurial ventures. The legal requirement is meant to create a pool of experienced entrepreneurs who can take the country forward economically.
There are several reasons why the government has decided to set a minimum age for company registration. First, it wants to create a safe environment for young people who are starting out in business. Second, it wants to create a pool of experienced entrepreneurs who can take the country forward economically. Third, it wants to reduce the number of bogus companies and fake directors. Fourth, it wants to encourage responsible entrepreneurship and discourage irresponsible business practices.
The only exception to this rule is if the company is managed by a parent or guardian who is over eighteen years old. In this case, the parent or guardian must be registered as a director of the company.
Types of Companies in India
There are a few types of companies that do company incorporation in India – Private Limited, Public Limited and Company Limited by Shares.
While the two first types are non-profit, their shares do not entitle the holder to any share in the profits of the company, and so they must be paid out to all shareholders. Companies can choose to be non-profit by incorporating themselves as a society, trust or foundation (trusts, societies and foundations are more common). All types of companies must pay taxes on their income in India.
Documents Required to Register a Company in India
To register a company in India, the following documents are required:
- A company registration form (Form No. CPF-101)
- Proof of registered office (power of attorney, lease agreement, etc.)
- A copy of the articles of association (or memorandum and articles)
- Identification proof (driver’s license, passport, voter identification card, etc.)
- One original stamped copy of the company registration certificate
- The company’s registered office address
Conclusion
India is a country with a rapidly growing economy, and as such, businesses of all sizes are looking for ways to get started. If you’re thinking of starting your own business in India, there are a few things you need to know before making that decision. The minimum age to register a company in India is 18 years old, but this number can change depending on the state in which you’re located. It’s always important to do your research before taking any steps forward, so be sure to consult with Vakilsearch if you have any questions about the process.
