I would like to discuss majorly 4 registration processes for the startups in this article, pick up whichever is most suitable for the mode of business you have.

Registration process-1 LLP (Limited liability partnership):

Flexibility, low compliance, no limit on business owners, low registration cost

A hybrid mixture of a limited company and partnership. This LLP is especially suitable for small to medium-sized business or professional enterprises. No prescribed minimum capital required for each partner. All partners have limited liability, and they are not directly responsible for the acts (mistakes, misconducts, negligence, or incompetence, etc.) of the other partners of the LLP and it amply popular form of a company in India is also permitted for making a foreign direct investment in India. 

Requirements:

1. Minimum two partners are mandatory, one of them must be a resident of India who should stay minimum 182 days in the current financial year. LLP can have more than two partners.

2. Two partners with DPINS (designated partner identification number) and partner should have DSC (Digital Signature Certificate). The DPIN can get obtained by applying. 

3. Six names can get proposed for to name the firm. 
4. Location of the registered or head office and details of the partners and statements.
5. Proof of appointment for the designated partners.

Startup registration process-2 (Private Limited Company):

You can raise more capital from maximum of 50 people and Pvt. Ltd. offers good exit strategy.

The beauty of Private company is they can issue little share to the people. However, their shares should not be traded on public exchanges shareholders should not sell their shares without the approval of the other shareholders. Private limited requires minimum two directors, two shareholders and INR 100,000 required. Both the directors should have Digital signature certificate (DSC) & Directors identification number (DIN). The name availability has to be verified by applying registrar.

Requirements:

1. Identity proof and address proof are mandatory for all the Directors of the Company. PAN Card is mandatory for Indian Nationals. Apart from that, the owner of the registered office premises must provide a no objection Certificate for the premises and their identity and address proof. 
2. Filing documents with Registrar of Companies (ROC).
3. Payment of ROC fees and Stamp duty based upon Authorized Share Capital.
4. Certificate of Incorporation by ROC.

Registration process-3 (Partnership firm):

No Compliance, easy formation, risk dilution

One may start a partnership firm with the objective of getting in people so that more capital is generated and making especially skilled people partners so that wise business decision can get done. It opens the door to and easier exits from a partnership firm when compared to a company’s exit policy. Two members are mandatory to start a partnership business and the maximum limit to start a bank is 10 any other business is 20 partnership deed should be created with certain rules to manage the business.

Requirements:

1. Partnership Deed.
2. A duly filled Specimen of Affidavit.
3. VAT and PAN.
4. Ownership proof of the principal place of business or rental.

Registration process-4 (Proprietorship):

Low cost start-up, maximum privacy, easy to wind up

It is a pretty handy process, just stop by to any bank and open up a current account and you are all set to start.

Requirements:

1. PAN(permanent account number) on the firm name.
2. VAT (value added tax) number.

Also Read: How to choose funding option for startup

Narasimha Mohan

He is the Author, Product Specialist, Business Consultant, Entrepreneur, Public Speaker, Thought provoking writer, and Joke writer. Follow him on Twitter