Private Limited Company Registration should be done well before on time. A Private Limited Company is a very common way to run your business in India. Basically, It is a Separate Legal Entity that does not have the right to publicly trade its shares in the stock exchanges. At least 2 members are required to register a Private Limited Company in India but a maximum of 200 shareholders. A Private Limited Company across the nation is managed and registered by the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013.
Documentation Required
- PAN copy of every person.
- Aadhar copy of every person.
- Photographs of every person.
- Business place proof – either rented or owned
- In case of owned then Property Tax Receipt/Electricity Bill.
- In case of rented then Rent Agreement and NOC form Landlord along with Electricity Bill under the name of the owner.
Documents Provided after Private Limited company Registration
- Digital Signature of every director.
- DIN for every director.
- Name search analytics.
- Main object assistance.
- Drafting of MOA and AOA
- Stamp Duty online.
- PAN Card of the company.
- Certificate of Incorporation of the company.
- EPFO and ESIC (Provisionally)
- Bank Accounts(Auto Selection)
- MOA and AOA
Why should start a Private limited company?
The following are the advantages of Reasons to Form a Private Limited Company:
- Separate Legal Entity
A Private Limited Company is a separate legal entity. This means Company has its own existence and it is not subject to the death, retirement, etc., of its members and it will continue to exist until it is legally wound up.
The Company can be sue be Sued on its own name can be borrowed and lend on its own.
- Limited Liability
The main advantages of a Private Limited Company liabilities of a member is limited to their capital contribution
The responsibility of the debts taken by the company would be of the company and not of the members.
3. WIDER SCOPE
Private Limited Company is a separate legal entity. Therefore, a Private limited company gives way to a pool of opportunities that increase the growth prospects of the company manifold. A Sole proprietorship is not eligible for the above-said benefit
Without any tie-up with the promoter, a Private Limited Company can avail of multiple growth opportunities.
- Easy Finance
Private Limited Companies are regulated by strict laws, which increases their creditworthiness and the financial institutions lend money to them easily. And Private limited companies can sell Purchase their shares to the public, so it is an easy funding option for them.
- Easy Transfer of Ownership
Private Limited Company, can easily be transferable because the shares and other interests of members are treated as movable property. So shares can be transferred in a manner as provided in the Articles of Association of the company.
Easy transferability of shares is a convenient way for the members to sell or buy the shares of the company at any time.
- Increased Credibility
A Private Limited Company is registered and regulated by the Ministry of Corporate Affairs. While undergoing the process of registration, a company takes up the elaborate process of legal documentation and provides the MCA with information like its name, status, registered address, date of incorporation, etc.
All this information is made available at the MCA public database for investors and customers. This makes it easy for interested parties to check company information and improves the credibility of the company.
Registration with the Ministry of Corporate Affairs increases the credibility of the Private Limited Companies.
- Globalization
A Private Limited Company can get foreign investment without any government approval. Foreign companies and investors can easily invest in Private Limited Companies.
Direct Foreign Investment opens doors for companies to take their business overseas, thereby giving tremendous opportunities for growth, even beyond national boundaries. The option of foreign direct investment is not available to sole proprietorship and partnerships.
More information on Private Limited Company or assistance on Registration of Private Limited Companies, contact us at Filingpool