PRIVATE LIMITED COMPANY
Private Limited Company is registered under the MCA (Ministry of Corporate Affairs) and its regulated by the Companies Act, 2013 and the Companies Incorporation Rules, 2014.
Easy Transferability
As the ownership of a company is represented by shares, the ownership of a company can be transferred to any other legal entity or person in India or abroad easily – in part or whole. The directors can also be replaced to ensure business continuity.
Funding
A company can raise equity capital from persons or entities interested in becoming a shareholder. Entrepreneurs can raise money from angel investors, venture capital firms, private equity firms and hedge funds.
Limited Liability
A private limited company provides limited liability protection to its shareholders. In case of any unforeseen liabilities, it would be limited to the company and not impact the shareholders.
Separate Legal Entity
A private limited company is recognized as a separate entity legally with perpetual existence. It can have a PAN number, bank accounts, licenses, approvals, contracts, assets and liabilities in its unique name.
STEPS TO REGISTER
The process for company registration begins with obtaining the digital signatures along with the application and generate a link to complete video eKYC verification. The applicant would have to take a short video and verify OTP to authenticate the application.
Next, the name approval form is submitted. The Government typically provides name approval within 48 hours. Then, legal documents are prepared which need to be signed by the directors and shareholders.
Once the documents are verified, your engagement manager will apply for incorporation with the MCA on the same day. Incorporation approval in about 48 – 72 hours of business days.
DOCUMENTS REQUIRED
Documents are required to process the application form like identity proof, the directors must submit residence proof that is less than three months old.
Companies registered in India must mandatorily maintain a registered office. In case of leased property, the copy of lease deed for the registered office premises along with a NOC from the landlord and EB bill/property tax receipt/water bill copy of the registered office property. In case of property owned by self, copy of the sale deed along with the EB bill/property tax receipt/water bill is required.
In case one of the shareholders or subscribers to the MOA and AOA is a corporate entity (Company, LLP, etc.,) then the certificate of incorporation must be attached along with the resolution passed by the entity to subscribe to the shares of the company under incorporation.
COMPANY COMPLIANCE
All companies registered in India are required to maintain compliance under various regulations. Failure to maintain compliance can lead to penalty or disqualification of the directors.
Some of the important compliances for companies registered in India are given to the right. Please note that additional forms will also be applicable as per government notification.