The registration of a private limited company is wondering when compared to the non-registered company. Likewise, Here we are going to discuss about the benefits of a private company in accordance with other companies.
The registered company always possesses certain distinct identity from its owners. The registration is mainly for the distinct identity evolution as for its own. Normally, The private limited company always has their own memorandum and article of association. The MOA is defining the rapport between the company and its members. But the AOA defining the purpose and the Operations involved within a company. Conversely, Such things are not available in the non-registered company.
The registered company can enter into contracts, obtain the liabilities, hold the assets and can charge or charged on all the activities of individuals. But based on the unregistered entity we can’t do the above process. Because it is not a distinct entity.
Privileges under Private Limited Company
The responsibilities of the registered premises are limited. But based upon the non-registered company the liabilities are not registered. Thus, Their personal assets can be attached to pay off the business debts and liabilities.
Additionally, The registered company continues its business after the death or non-existence of the owner or any other persons. But in an unregistered company the existence is affected in case of death or any other.
Conversely, The registered company’s shares are freely transferable but in an unregistered company we can transfer the shares only with the agreed consent of all members.
In India there are lots of companies are registering under the Registrar of companies under the companies act, 1956 and companies Act, 2013. For instance, The regional offices are registering the Private limited companies. Similarly, The Pvt Ltd company can be registered by registering the director with ministry of corporate affairs.
Then register the name with concerned documents for incorporation like MoA and AoA. Likely, During the time of registration the registrar providing 21 character unique CIN. Especially, The CIN Describes the company’s activity, status, and registration.
Requirements to register a Pvt Ltd Company
Let us discuss the primary requirements to register a private limited company.
- Number of directors
In the number requiring category there must be at least 2 directors and maximum of 15 directors. Notably, One of them among the directors should be an Indian citizen.
- Minimal capital contributions
The private limited company must have two rupees of paid up and share capital.
- Registered office
The registered company should possess the registered land. The registered land can be a rental home.
Particularly, No objection certificate also mandatory for submitting the registered details.
Documents for the Registration process
The documents required for the Private limited company registration is
To illustrate, The documents submitted by shareholders & directors (Indian nationals)
- Scanned copy of PAN Card and voter ID/ Driving license or passport
- Latest bank account copy
- Electricity or any other utility bill
- Email –ID and mobile number
- The DSC (Digital signature certificate
Including, The PAN Card is very important according to an Indian Citizen. Because using that license we can able to register the company or any other legal activities.
The documents submitted by shareholders & directors (NRIs & Foreign nationals)
- Scanned copy of the PAN
- Voted ID/ Driving license or passport’s scanned copy
- Latest bank account’s statement/ utility bill’s scanned copy
- DSC of the Applicant
- Email and Contact number
Registration process of Pvt Ltd Company
- Digital signature certificate
Firstly, you have to obtain the DSC of the registered premise. The first step involved in is filling the e-forms with online portal of MCA. It is issued by certifying authority and is valid up to 1 or 2 years. Similarly, The persons involved in the company registrations are subscribers and the directors of proposed company. The subscribers are the persons who are the promoters of the company. The shareholders have to file the MoA and AoA.
Documents for obtaining the Digital signature certificate
- Passport photo
- Address proof with self-attestation
- PAN card with self-attestation
Getting DIN (Director Identification number)
The director identification number is a unique number assigned by ministry of corporate affairs for the allotment of DIN. The number has the lifetime validity unless it is surrendered or withdrawn. Specifically, The director gets the DIN while the incorporation of Private limited company. The DIN is used for the appointment for any other company or designated partners in the LLP.
Documents required for getting the DIN
- Passport photo
- Address proof with self-attestation
- PAN card with self-attestation
Reservation of Company name
Before making the company incorporation or registering the Private limited company in Coimbatore, firstly, we have to obtain the correct name. The reservations of name are obtained in e-Form INC-1 with concern fees. The one form should contain the 6 names in an order wise. Conversely, The name search also has to make before the application filing. The registrar enjoys the name approval application.
The criteria for the name approvals are,
- The name should be simple and easy to pronounce
- Name should possess a distinct identity to the company.
- The name does not include the violating words for the public policy.
- It should not similar to the existing company name or do not infringe the trademark
More importantly, The incorporation credentials are made after the reservation of name for the proposed company.
Drafting MoA & AoA
These are the charter documents of AoA & MoA. The MoA is stands as memorandum of association and AoA for article of association.
Documents needed with the application
- Utility bill
- NOC from the landlord
- Rental agreement if the premise is rented one
- Agreement for holding as Director in form DIR-2
- The confirmation and declaration in form INC-9
7 Steps of Private limited Company Registration for a Startups
In India most of the business firms are registered under the Private Limited company registration category. Here in this blog we are going to deal with the importance of startups.
What is the benefit of a registration process? Is the only benefit to get a legal entity shape? No, Not only that. Here in this blog I am going to share the Top 7 Reasons to incorporate a startup as a private limited Company. Private limited companies have certain benefits. Let us talk about that.
Corporate Personality: Company is a legal person independent of its members. After the incorporation of the company all the people associated with the company are capable of doing all the activities related to the growth of the company. Those persons are having certain power to deal with common seals to acquire, hold and dispose of the property, both tangible and intangible, to contract and to charge and be charged, by the said name.
Limited Responsibilities:at the time of company wind up, the members of the Private Limited company do not actually have to pay any additional cost more than the actual value of shares held by him.
Perpetual Succession: Private limited companies have a great perpetual succession. If the company board members change, it will not affect the company functioning. The company will be the same entity as it before with the same privileges, estates and professions. The company continues the responsibilities till it gets wound up. The death or insolvency does not affect the future and existence of the firm.
The shares of the Private Limited company members are transferable in the manner provided by the articles of the company. This share transfer encourages the investment and members cash encash the amount at any time. It provides liquidity to the investors. Thus the easy share transfer provides stability to the company.
Separate Property: The property of the company is always the property of the company itself. Company is a separate legal entity. So any of the members does not have any impact on that fund. If any of the members are using those properties for their personal purpose, then it will be considered as a criminal misappropriation and he may charge for that.
Capacity to Charge: The company can charge in its name and be charged by others. The Private Limited company members or the team is not liable for such actions.
Flexibility and Autonomy: The company has certain rights and independence to form in a certain way and it implements them through the Memorandum and Article of Association.
Get register your business now!
The Private limited company come into existence after the registration of the business with the companies act and the companies rules. You will fetch all the data relating to the registrations are available in the MCA Portal. Besides, You can register the company with the best consultants. Neither, they will pull you down with all the legal rules. They place your company as illegal and non-registered. Want to face such types of legal thrones? Then make your registrations easily with the best legal consultants in Coimbatore named Corpstore.