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BENEFITS OF COMPANY REGISTRATION

Limited liability protection to directors personal assets

Many times startups need to borrow money and take things on credit. In case of normal Partnerships, Partners personal savings and property would be at risk incase business is not able to repay its loans. In a private limited company, only investment in business is lost, personal assets of the directors are safe.

Better image and credibility in the market

Private limited company is popular and well known business structure. Corporate Customers, Vendors and Govt. Agencies prefer to deal with Private Limited Company instead of proprietorship or normal partnerships.

Easy to raise funds and loans

Pvt. Ltd. company enjoys wide options to raise funds through bank loans, Angel Investors, Venture Capitalists, in comparison to LLPs and OPCs.

Favorite business structure for investors

Investors love to invest in Private Limited 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 a team and keeping them for long time is a challenge, due to confidence attached to private limited structure, it is easy to hire people as well motivate them with corporate designations and stock options.

Easy to sell

Private Ltd. is easy to sell, very less documentation and cost is involved in selling a Pvt. Ltd. company.

MINIMUM REQUIREMENTS FOR PVT. LTD. REGISTRATION

  • Minimum 2 Shareholders
  • One of the Directors must be Indian Resident
  • DSC (Digital Signature Certificate) for 2 Promoters & 1 witness
  • Minimum 2 Directors
  • Suggested Authorised Share Capital 20,000 (INR Twenty Thousand)
  • The directors and shareholders can be same person
  • DIN (Director Identification Number) for all Directors

WHAT ALL YOU GET

  • DIN for 2 Directors
  • MOA + AOA
  • Customized Incorporation Master File
  • Digital Signature Token for 2 Promoters & 1 witness
  • Incorporation Certificate
  • Company PAN Card
  • Company Name
  • PF + ESIC + Professional Tax
  • Company TAN/TDS

LET'S CLEAR ALL THE DOUBTS!

What details required to set up Pvt. Ltd. Company in India?

You need to arrange very simple details of directors like photograph, Pan card and one address proof. For more details, please fill the above details and

Do I have to have office (commercial) space to start a Company?

No, commercial office space is not required. You can show your own residential or rented home address as the registered office address of the Company. This office address can be changed at any time after incorporation of the company. Once your startup is set up, stable and ready to move on to a nice corporate space you can change the registered office address by informing to the ROC office.

What is DIN? What is the importance of DIN in Company Registration?

Director Identification Number (DIN) is a unique identification number required for a person to become a director of a company. DIN is issued by ROC office (Ministry of Corporate Affairs)
It is similar to a PAN Card number.DIN is to be mentioned in documents while appointing a person as a director of a company.

What is DSC? Why is DSC important for Company Registration?

A digital signature is electronic signature, which is in the form of codes. It is used for signing the electronic forms, filed with ROC for incorporation of Company. Digital Signature cannot be used in physical documents.

What is MOA & AOA of company?

MOA means Memorandum of Association and AOA means Articles of Association. These are the byelaws or rules based on which important matters like main business of the company or meetings is decided. These are standard legal documents prepared by Company Secretaries during registration of the Company.

What is capital of the Company?

Capital means investment made by shareholders into the company. Authorised capital is an amount up to which company can issue shares. This capital is mentioned during incorporation of the company based on which ROC registration fees and stamp duty is paid. Paid up capital is an actual investment which goes from shareholders into company bank account, against which share certificate is issue by the company.

No. After company is registered, it need to open a company bank account and then anytime within two months of incorporation, capital can be deposited into Company bank account.

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This is not true, a Private limited company is one of the mode of doing business, which means it can be started from scratch. For that matter even after incorporating a private limited there is no obligation that the company must have sales or turnover.

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Does PF, GST is automatically applicable to Private Limited?

There is no automatic applicability. Provident Fund (PF), GST law applicability is same for all types of businesses like sole proprietorship, partnership firms and companies. These laws are applicable only after crossing certain threshold limits.