Company Registration:
Private Limited Company Registration is the most common and suitable form of entity for carrying out business in India with a long term objective. A Pvt Ltd Company Registration is Incorporated and Governed by the Indian Companies Act 2013. Company Formation in India is a Purely Separate Legal entity distinct from its members and directors. The business under this structure can be done by making investment through the equity shares in the Company. It has the advantage of limited liability, greater stability and recognition. The Basic Requirement for a in Company Incorporation in India is to have Minimum Two Directors and Two Shareholders(Both are Same).
Unique features of a private limited company like limited liability protection to shareholders, ability to raise equity funds, separate legal entity status and perpetual existence make it the most recommended type of business entity for millions of small and medium sized businesses that are family owned or professionally managed.
Important Aspects
EASY TO RAISE FUNDS AND LOANS
Private Limited Company enjoys wide options to raise funds through bank loans, Angel Investors, Venture Capitalists, in comparison to LLPs and OPCs.
STRUCTURED BUSINESS
Investors love to invest in Pvt. Ltd. companies as it is well structured and less strings attached. Most important it is very easy to exit from a private limited company.
EASY TO ATTRACT EMPLOYEES
For startups putting together team and keeping them for long time is a challenge, due to confidence attached to Pvt. Ltd structure, it is easy to hire people as well motivate them.
OWNING PROPERTY
A Private Limited Company being an artificial person, can obtain, enjoy, own and alienate, property in its name. Property owned by a company may be building, machinery, intangible assets, land, residential property, factory, etc., No shareholder can stake a claim upon the property of the company – as long as the company is the going concern.
TRANSFERABILITY
The ownership of a business can be very easily transferred in a company by transferring the shares. The signing, transfer and filing of share transfer form and the share certificates is adequate to transfer the ownership of a company. In a private limited company, the consent of other shareholders may be required to effect share transfers.
LIMITED LIABILITY
Businesses often need to borrow money, in Partnership, partners are personally liable for the debt raised. If cannot be
repaid, partners would have to sell their personal possessions to do so. In Pvt Ltd only the amount invested in starting the
business would be lost the directors’ personal property would be safe.
Documents Required:
- Declaration Of Compliance, Duly Stamped
- Notice Of The Location Of The Registered Of The Company
- Particulars Of Directors, Manager Or Secretary
- Automation Executed On A Judicial Stamp Paper, In Favor Of One Of The Subscribers Of The Memorandum Of Association (MOA)
- The Registrar Of Company’s Letter In Original Indicating Availability Of The Name
Frequently Asked Questions
ROC is a Government office with whom companies get registered. Every State has one ROC office except Maharashtra and Tamilnadu where there are two ROC offices. In Maharashtra companies are registered with Mumbai & Pune ROC. In Tamilnadu companies are incorporated at Chennai and Coimbatore ROCs. In all other States like Delhi there is only one ROC office, like at Bangalore, Hyderabad and so on.