Harun Raaj & AssociatesHarun Raaj & Associates
Company Law & MCA Compliance

Business Registration & Entity Formation

Entity Hub

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Overview

Business registration and entity formation is the practice of choosing and creating the right legal vehicle for a business — a private limited company under the Companies Act 2013, an LLP under the Limited Liability Partnership Act 2008, a partnership firm under the Indian Partnership Act 1932, or a proprietorship. Each structure allocates liability, tax, compliance and credibility differently: the company and LLP give limited liability, the company gives the equity-raiseable form, the firm is the lightweight traditional route, and the proprietorship is the simplest but carries unlimited personal liability. This is the gateway page for that practice.

The choice of structure decides the business's legal life. The company is the vehicle investors and lenders expect, with its incorporation under Section 7 of the Companies Act 2013 and its registered office under Section 12. The LLP combines limited liability with partnership flexibility under the LLP Act 2008. The firm and proprietorship are cheaper to run but expose the owners' personal assets to the business's liabilities. The decision is tax planning, risk planning and fundraising planning in one.

The cost of a wrong structure is paid slowly: a proprietorship that grows into a business needing investment, a partnership whose partners discover unlimited liability, a company formed with the wrong objects that needs amendments. Changing structure later — conversion — is more expensive than choosing right at formation.

This service is for founders choosing and forming their business entity. We advise on the structure fit, incorporate companies under the Companies Act 2013, form LLPs under the LLP Act 2008, register partnership firms under the Indian Partnership Act 1932, and complete the tax registrations — PAN, GST and the compliance calendar — so the entity starts life on the right footing.

How It Works

  1. 1

    Structure Fit Analysis

    We match the business to the right structure — company, LLP, firm or proprietorship — by liability, tax and growth needs.

    Harun Raaj & Associates does this2-3 days
  2. 2

    Name & Registration Steps

    We reserve the name and complete the registration route for the chosen structure.

    Harun Raaj & Associates does this1-2 weeks
  3. 3

    Constitutional Documents

    We draft the MOA/AOA, LLP agreement or partnership deed for the entity.

    Harun Raaj & Associates does this1 week
  4. 4

    Tax Registrations

    We complete PAN, GST and the applicable registrations for the new entity.

    Harun Raaj & Associates does this1 week
  5. 5

    Compliance Start-up

    We set up the entity's compliance calendar and the initial statutory formalities.

    Harun Raaj & Associates does this1 week

Frequently Asked Questions

What is the statutory process for incorporating a private limited company?
Incorporation is governed by Companies Act 2013 Section 7. The SPICe+ Form (INC-32) bundles name reservation, DIN allotment, PAN, TAN, GSTIN, EPFO, ESIC, and Shops & Establishments registration in a single e-form filed with the RoC. The Certificate of Incorporation is issued under Section 7(2) and the company's legal existence begins from that date — not the date of SPICe+ submission.
How is an LLP registered and how does it differ from a private limited company?
An LLP is registered under Section 11 of the Limited Liability Partnership Act 2008 using Form FiLLiP filed with the RoC. Unlike a company, an LLP has no minimum paid-up capital requirement and profits are not subject to Dividend Distribution Tax. However, an LLP cannot raise equity from investors or issue ESOPs, making it unsuitable for venture-backed businesses. The LLP Agreement must be filed within 30 days of incorporation in Form 3.
What are the requirements for a Section 8 company (non-profit)?
A Section 8 company under Companies Act 2013 is incorporated to promote charitable objects including education, science, commerce, or social welfare. It requires a licence from the Central Government (Regional Director) before name approval. Income applied solely to the objects enjoys exemption under ITA 1961 Section 11 if the entity also registers under Section 12A/12AB. Profits cannot be distributed to members — violation triggers revocation of licence under Section 8(6) and conversion to a regular company.
Is there any tax implication when shares are issued at a premium to resident investors after April 1 2025?
Angel tax under ITA 1961 Section 56(2)(viib) — which taxed share premium received from resident investors above fair market value as income in the hands of the company — was abolished with effect from April 1 2025 (Finance Act 2024). Closely-held companies can now issue shares to resident investors at any premium without triggering Section 56(2)(viib). FEMA Regulation 4 under FEMA 20(R) still applies pricing guidelines for non-resident investors.
What annual compliance is mandatory immediately after incorporation?
Every company must file Form INC-20A (Declaration of Commencement of Business) within 180 days of incorporation under Section 10A — failure bars the company from borrowing or starting business. Ongoing annual filings include AOC-4 (financial statements, Section 137), MGT-7/MGT-7A (annual return, Section 92), and DIR-3 KYC for each director. An LLP must file Form 11 (annual return) and Form 8 (statement of accounts) under LLP Act 2008 Rules 24 and 25 respectively.

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