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New company registration (Type of company)

22 April 2023

Hi Everyone,

I am looking for professional advice regarding the new company registration. We are planning to start a company for garbage collection from domestic household, basically a waste management company. So my question is that is it mandatory to register the company under PVT Ltd due to local municipality compliances or I can register the company under partnership firm or sole proprietorship and start the operations. There would be hardly 2-4 employees in the beginning. Appreciate your valuable advice on this.

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5 Replies

CA. Abhilash Krishnan P (Chartered Accountant) (533 Points)
Replied 22 April 2023

Small business set up proprietary concern would be better pvt Ltd will have higher compliance costs

Gaurav Luthra (3 Points)
Replied 22 April 2023

Thank you CA Abhilash for the revert appreciate it. Well we have a vision for the future and want to raise funding/loans in the future, so in a sole proprietorship will it be difficult to raise any loans?

ashish (ca) (82 Points)
Replied 22 April 2023

As per the laws in India, it is not mandatory to register a waste management company as a Private Limited company. You can register your company as a partnership firm or sole proprietorship as well. However, there are certain advantages to registering your company as a Private Limited company, such as limited liability protection and easier access to funding.

In terms of local municipality compliances, it would be best to check with the local authorities in your area to understand the specific requirements for waste management companies. In some cases, local municipalities may require certain licenses or permits for waste management companies, which would need to be obtained before starting operations.

sabyasachi mukherjee (27858 Points)
Replied 23 April 2023

Read sec 22 of gst act. apply for a provisional gst registration no issues.

Shrijay Sheth (Co-Founder) (2692 Points)
Replied 01 May 2023

It is not mandatory to register a waste management company in India as a Private Limited company. However, registering your business as a pvt ltd company has various benefits, such as seprate legal entity, limited liability of the shareholders, easy ownership transfer with ways to raise funds from investors, and no minimum paid-up capital requirements.

That being said, a waste management company can also be registered as a Limited Liability Partnership (LLP), Sole Proprietorship, Partnership firm, or One Person Company (OPC), depending on the size, ownership, and legal requirements of the business. Hope this helps.