Incorporation of a Private Limited Company in India

Getting successful in business requires you to make sure that all your legal basis are covered, and when business is considered, private limited company registration should be a priority. It is most popular form of business entity that not only gives your business a legal structure, but also opens a whole new horizon for you. Across this horizon, there are perks that range from limited liability to easy access to finances for the company.

Why incorporate your business as a private limited company?

There are several reasons to private limited company is good for your business. They are as follows:

1. Access to a separate legal entity: Through the process of formation of a private limited company, it gains separate existence from that of the owner.
2. Limited Liability: It is perhaps, the most lucrative and attractive aspect of a Pvt Ltd company. Limited liability ensures that in the event of loss, the person assets of the owners of the company remain safe. Being a separate legal entity has this effect on a company.
3. Ease transfer of Shares: Although the prospect of share transfer within a company can be seen as a disadvantage, there is an advantage to it as well. While the shares can only be transferred within the members, it is also quite an easy process. Furthermore, if some member desires to transfer his shares to an outside buyer, they can do so by conducting a board meeting and getting voted on this matter.
4. Continued Existence: It is another perk of being a separate legal entity. After the owner dies, the company still continues to exist.
5. Tax exemptions: The corporate taxes that a private limited company has to pay tend to be far lower than other forms of business entities.
6. Easy access to funds: The Banking and Non-banking institutions are more than willing to grant loans to a private limited company. The same goes for venture capitalist, as they easily tend to put their trust in a registered and independent business entity.

Process of Incorporating a Private limited company

There are several steps that go into incorporating a private limited company. They cover the entire legal basis and ensure that your business is well protected in the years to come.

1. Decide what you want your company’s name to be: "What’s there in the name" is the most illogical line or saying or whatever to exist within a business world. When you are deciding the name, you need to take care of the following factors:

a. It should be easy to pronounce the name

b. It should be easy to remember the name

c. It should not be offensive to anyone

d. It should not contain any kind of superlatives

1. Organize the documents required for private limited company incorporation: When you are collecting and organizing the documents required, remember to get them digitally signed by either the Chartered accountant, a company secretary or a cost accountant (all of the officials should be practicing experts)
2. Obtain the DSC and DIN: DSC or Digital Signature Certificate is getting to be the most important document when it comes to authorizing the documents you are submitting to the government. Get DSC as soon as you acquire the documents. Once you get the DSC, apply for, and obtain the DIN (Director Identification Number)
3. Reserve the name for your company: Deciding the name of the company isn’t enough, you need to get approval for it as well. File the RUN (Reserve Unique Name) application to reserve the name of the company.
4. Draft the MOA and AOA: Memorandum of Association is a legal document that details the object of your company (the business that your company do ). It also contains details about the shareholders, the directors, and the capital paid up or to be paid up by the shareholders as well.
5. File the application for Company Registration: The Private limited company Registration online form is called the SPICE eForm. File the application while the DSC is inserted in the drive.
6. Get Certificate of Incorporation: The Registrar of Companies (RoC) processes and assesses the application for errors. If there are some, you shall be notified and have to file the application again, with all the errors rectified. Once the application is accepted, the RoC gives you the Certificate of Incorporation (COI). It contains the CIN (Company Identification Number)

Documents Required for Private Limited Company Incorporation

As we have already mentioned, the documents have to be digitally signed by a CA or a CS. The documents are the following:

1. PAN card of the directors of the company
2. ID proof and Address proof of the directors and members of the company
3. Photo ID proof of the directors and members of the company
4. Address proof of the registered office.
5. Memorandum of Association
6. Articles of Association
7. Digital Signature Certificate
8. Director Identification Number

Conclusion Once you get the Certificate of Incorporation, you have access to the most popular form of business entity in India. Private limited company registration process, although easy, still should be completed by registered company registration professionals. After you obtain your company, you are free to move on the road that points to perpetual growth

For more information visit https://www.registrationwala.com