A Private Limited Company means a corporation where minimum number of member is 2 and maximum 50. It is the most popular and accepted form of business entity among start-ups. There is no minimum capital requirement to start a private limited company.
Ankit Sehra & Associates is an well-known business platform and a progressive concept, which helps end-to-end incorporation , compliance, advisory, and management consultancy services to customers in India and abroad. Incorporating a Private Limited Company is trouble-free, cheapest and quickest with ankitsehra.com, Apart from a Private Company, ankitsehra.com also facilitate entrepreneurs with Partnership Registration, HUF, LLP Incorporation and One Person Company registration without difficulty. You may get in touch with our compliance manager on 09354796378 or email email@example.com for free consultation.
DOCUMENTATION FOR COMPANY INCORPORATION
- 1. Obtaining a Digital Signature (DSC):
- • ID Proof: Copy of PAN Card (Self-attested)
- • Address Proof: (Aadhar Card/ Driving License/Copy of passport/ Landline Bill/ Voter ID Card/ Electricity Bill)
- 2. Obtaining Director Identification Number (DIN) and Certificate of Incorporation:
- • 4 Passport Size Photographs
- • ID Proof : PAN Card and (Voters ID Card/ Passport/ Driving License/ Aadhar Card) (For the Members) – Self Attested
- • Address Proof: Bank statement/ Electricity Bill/ Telephone Bill/ Mobile Bill ( all not older than 2 months) (For the Members) – Self Attested
- • At least 3 Name Options
- • Description of the main objects of the company
- 3. Registered Office Address:
- • Lease Deed/ Rent Agreement NOC from the owner
- • Proof of the ownership of the property (Utility Bill – Landline/ Electricity/ Water/ Maintenance – Not older than 2 months)
- 4. Additional info required:
- • Place of birth
- • Educational Qualifications
- • Occupation – Business/ Service and Area of occupation
- • Residing Period at current Address
Advantages of a Private Limited Company
Businesses frequently need to borrow money. In structures such as General Partnership, partners are in person liable for all the debt raised. So if it cannot be repaid by the business, the partners would have to sell their personal property to do so. In a private limited company, only the amount invested in starting the business would be lost; the directors’ individual property would be safe.
Separate Legal Entity
A Private Limited Company is separate legal entity and juristic person recognized under the Companies Act. Therefore, a company has a huge range of lawful capacities including that of opening of a bank account, hiring employees, taking on the equity or obtaining the licenses and more as an independent corporate entity. A member (Shareholders/Directors) of a company has no individual liability to the creditors of a company for company’s debts.
Private limited companies easily put up equity funding as there is a clear difference between shareholders and directors as well as limited liability. In fact, venture capitalists and private equity funds are doubtful to invest in any other structure. This is because LLPs would need them to become partners in the business, while an OPC can have only one shareholder. This characteristic also gives you the ability to hire top talent you may not be able to afford by simply paying a salary.
Easy Debt Access
A private limited company has further options for taking on debt than LLPs. Not only be bank loans easy to obtain (relative to OPCs and LLPs), the option of issuing debentures and convertible debentures are always accessible to it.
A Private Limited Company be able to raise the equity funds in India. The Companies can also issue equity shares, preference shares, debentures and agree to accept the deposits with RBI permission. The Banks and Financial Institutions fancy to provide the funding to a company rather than the partnership or proprietary concerns.
A Private Limited Company has ‘continuous succession’, that means, it has an uninterrupted existence until it is legally dissolve. As a company is a separate legal person, it is unaffected by death or other the removal of any member and it continues to be in existence irrespective of the changes in possession.
The ownership of a business can be very easily transferred in a company by transmit the shares. The signing, transfer and filing of share transfer form and the share certificates is enough to transfer the ownership of a company. In a private limited company, the consent of other shareholders may be required to produce share transfers.
A Private Limited Company being an imitation person, can obtain, enjoy, own and set against property in its name. Property owned by a company may be building, machinery, intangible assets, land, residential property, factory, Gold, Investment etc., No shareholder can pledge a claim upon the property of the company – as long as the company is the going concern.
What is the Time required to register a company?
The entire process including approval of DIN, Name, and Incorporation takes around 10 working days. However, now-a-days registering a Company has turn out to be a fast process as all documents are dragged in a single application form with MCA. It is a big step towards e- governance and for businesses who are looking for development of operations.
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