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Company registration

Author: Kanika Khare
by Kanika Khare
Posted: Dec 28, 2018
company registration

Company Registration is the most common and suitable form of entity for carrying out business in India with a long term objective. Pvt Ltd Company Registration is Incorporated and Governed by the Indian Companies Act 2013. Company Formation 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 Incorporationis to have Minimum Two Directors and Two Shareholders.

  • These are closely held businesses usually by family, friends and relatives.
  • Private companies may issue stock and have shareholders Their shares need not be traded on public exchanges and are not required to be issued through an initial public offering.
  • Shareholders may not be able sell their shares without the agreement of the other agreement of the other.
ADVANTAGE

ADVANTAGES OF PRIVATE LIMITED COMPANY REGISTRATION :

  1. LIMITED LIABILITY: If the company experience financial distress because of normal business activity, the personal assets of shareholders/owners will not be at risk of being seized by creditors.
  2. SEPARATE LEGAL ENTITY: A company is a legal entity and a juristic person established under the Act. Therefore a company has legal capacity to own property and incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts
  3. CONTINUITY OF EXISTENCE: The existence of company cannot be affected by owners. They may come, change and go but the company will run until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.
  4. MINIMUM NUMBER OF SHAREHOLDERS : The Minimum Members need to start the business are only2.
  5. SCOPE OF EXPANSION IS HIGHER: A company has various options for borrowing of funds. It can raise funds by issuance of shares, debentures etc. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.
  6. EASY TRANSFERABILITY OF OWNERSHIP: The Ownership(shares) of Company is easily transferable by a shareholder to any other person after Filing and signing a share transfer form at any price mutually agreed between both. Therefore, the Capital infused can be taken back easily
  7. OWNING PROPERTY: A company being a legal person, can acquire, own, enjoy and alienate, property in its own name. No shareholder/director can make any claim upon the property of the company so long as the company is a going concern.
  8. CAPACITY TO SUE AND BE SUED: The company being legal person has full right like a natural person to institute legal proceedings against or to bring a suit in a court of law and also can be sued in its own name.
  9. MULTIPLE RELATIONSHIPS: In a company a person can at the same time be a shareholder, creditor, director and also an employee of the company.
  10. Requirement of minimum capital of Rs. 1Lac is removed by amendment under Companies Act, 2013.

Time Duration

5-15 days (Subject to ROC Response) after receipt of all the necessary Documents, The breakup of the Number of days for new company registration is as follows :

Activity

Days

Taking Digital Signature of Directors

1/2-1 Day

Taking Directors Identification Number (DIN)

1/2 Day

Reservation of the name of the Company

1 Days

Preparation of other documents such as MOA,AOA, Forms etc

1 Days

Filling of documents with Authorities

1 Day

Getting Final Certificate of Incorporation

3-4 Days

Total Number of Days

5-7 Days

Documnets Required

Documnets Required for Company Incorporation:

  1. One copy of PAN Card of all the proposed directors.
  2. One copy of ADDRESS PROOF(Aadhar Card) of all the proposed directors.
  3. Copy of Bank Account Statement/Electricity Bill/Mobile Bill of all the proposed directors.
  4. Passport size 2 Photographs of all the proposed directors.
  5. Duly signed DSC Form of all directors of the proposed company.
  6. Copy of current Electricity Bill/Water Bill/House Tax etc. for the premises proposed to be used as registered office of the Company.
  7. If the property is rented, then Rent Agreement and NoC from owner of property.

INFORMATION REQUIRED WITH REGARD TO THE COMPANY REGISTRATION :

Directors Detail:

  1. Educational Qualification of all the Directors.
  2. Profession/Occupation of all the directors with area of Operation
  3. Citizenship alongwith Residential Status of all the Directors
  4. Place of Birth of all the Directors
  5. Permanent & Present Residential Status of all the Directors
  6. Contact Numbers of all the Directors
  7. Email Ids of all the Directors

New Company Registration Detail :

  1. Preference wise Proposed names of the Company with Significance of the name
  2. State in which Company is to be registered.
  3. Authorized and Paid Up capital of the Proposed Company
  4. Main Object of the Proposed Company
  5. Division of paid Up capital among the Subscribers.
  6. Number of Proposed Directors
  7. Number of Proposed Shareholders
  8. Whether the promoters are carrying on any Partnership firm, sole proprietary or unregistered entity in the name as applied for?
  9. Whether the proposed name(s) contain(s) name of any person other than promoter(s) or their close blood relatives.?
  10. Whether the proposed name(s) include(s) the name of relatives?

What You Get

  1. Unique Director Identification Number(DIN) for Life time.
  2. Digital Signature Certificates (DSC)
  3. Reservation the Name for your Company
  4. Certificate of Incorporation.
  5. Rubber Stamp of the Company
  6. PAN Card and Tan Number of the Company.
  7. Proper Incorporation File
  8. Bank account Opening Documents
  9. Draft Copies of MOA & AOA.
  10. GST Registration

Faq’s

1..What is Private Limited Company Registration?

Answer: A Pvt Ltd Company Registration India is incorporated and governed by the Indian Companies Act 2013. Private Limited Companies is the most common and suitable form of entity for carrying out business in India with a long term objective. Private Limited Company Formation 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 private Limited Company in India is to have minimum two directors and two shareholders.

2..What are The Benefits or advantages to work as a private limited company?

Answer: The Private company advantage of limited liability, separate legal entity, greater stability, recognition, continuity of existence, minimum number of shareholders, scope of expansion is higher, easy transferability of ownership, owning property, capacity to sue and be sued and multiple relationship.

3..What is the Procedure to incorporate aonline company registration?

Answer:There are two ways of company Incorporation in India.

  1. Through Normal Mode.
  2. Through Fast Approval.(INC-29)

4..What is the Time Frame for New Company Registration?

Answer:Through Normal Mode. It usually takes 10-15 days after receipt of all the necessary Documents, The breakup of the Number of days is as follows

Through Fast Approval- It usually takes 4-5 days after receipt of all the necessary Documents.

5..What are the Charges for Incorporating a Company?

Answer:Fees for the incorporation decide on company capital, state and total number of directors.

6..How many Persons are required to incorporate a company?

Answer: The Minimum number of 2 persons are required to incorporate a company.

  • Legally minimum 2 directors are required and 2 shareholders are required.
  • These two persons can act in both capacity as directors and as shareholders.

7..What is the difference between Directors and shareholders?

Answer: In simple words,

Director is the person who takes the responsibility to run the business and manages the day to day business of the company. Generally are the managers or agents of the actual owners of the company who act in fiduciary (trustworthy) position. Only individual persons can become directors.

Shareholders are the owners of the company who invest their monies in the company. Shareholders get part in the profits of the company in the form of dividend. They aren't responsible for the day-to-day management of the company, but they do have voting rights with which they can affect the decisions of the company. Any individual, company or other entity can become shareholder.

8..What is DIN?

Answer: Director Identification Number (DIN) is a unique identification number for an existing director or a person intending to become the director of a company. it is valid for the lifetime.

9..What is DSC?

Answer:Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper Sign. Certificates serve as proof of identity of an individual for a certain purpose. A Class 2 digital signaturecan be presented electronically to prove your identity, to access information or services on the Internet or to sign certain documents digitally. Its valid for maximum 2 years.

10..What is the validity of Certificate of Incorporation Issued by the ROC?

Answer: Once a Certificate of Incorporation is issued by the ROC, it is valid for the lifetime of the company unless it goes for winding up.

About the Author

Ezzus India Private Limited is a platform to simplify to start business and after related matters. We are committed to helping startups and small business in solving legal compliance related to starting and running their business or licenses and regi

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Author: Kanika Khare

Kanika Khare

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India

Member since: Apr 04, 2018
Total live articles: 11

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