All about Private limited Company Registration
PRIVATE LIMITED COMPANY
Private Limited Company registration is one of the best legal structure options for businesses in India. Private limited company must have at least two shareholders and a maximum of 200 shareholders. The directors of company had a distinguished from its entity and it will treat as separate person from business and have no liability for company. In a case of default, banks / creditors can only sell company assets but not personal assets of directors. This will be main advantage to work under private limited rather than any other form of business.
Start-ups and growing start-ups prefer private limited company as it allows outside funding to be raised easily in the form of loan from banks, venture capitalist etc. They case raise their money in the form of equity to its investor to fund their business There is myth that Minimum paid capital requirement to open a private limited company is 1 lac you can also run incorporate with a minimum capital as per your requirement
It limits the liabilities of its shareholders and enables them to offer employee stock options plain (ESOP) to pull in top talent of employees. Private Limited Company Registration can be done through by Ovakil.com all over India.
FOLLOWING ARE THE FEATURES OF PRIVATE LIMITED COMPANY
1. LIMITED LIABILTY: As its name suggest private limited company is liable unto the extent of its share capital and free reserve available its books, shareholder are not personally liable for company debts.
2. PERPETUAL SUCCESSION: If in the event of death and resignation of its member , private limited can continues its operation because it has a separate legal entity.
3.MINIMUM 2 PERSON REQUIRED: For opening an private limited company there must be 2 person required to incorporate.
4. NO MINIMUM PAID UPCAPITAL REQUIREMENT: Before company act 2013, in company act 1956 there is a minimum paid up capital requirement of 1 lcas rupees but now as per company act 2013, you can open your private limited company with a capital of even 10000 rupees
5.TAX ADVANTAGE: Private limited company has a tax advantage over partnership firm its tax rates can vary from 15-25% depend upon your business while in partnership there is a flat rate of 30% is applicable.
Apart form this there are some other advantages which attract eyes of new venture to run business in private limited.
1. Pan Card & pictures
Individual PAN card and pictures of all directors and shareholders are required for registration.
2. Aadhaar Card
For Private limited Company registration we need Aadhaar card of proposed partners.
3. Bank Details
One document from the option is required (Bank statement/ updated bank passbook/ Utility bill ) not older than 2 months.
4. Business address proof
Any utility bill like electricity bill or water tax bill is required not, older than 2 months, in case property is rented in than rent agreement with owner is required.
Reasons for PrIVATE LIMITED COMPANY
1. Easy to change Owners
In Private limited company it is very easy to change the owners of company, its only need share transfer from one owner to other holder.
2. Borrowing Capacity
There are many option for raising fund from market. It may be Equity share, preference share or Bank loan. Bank and other NBFC easily provide loans to private limited companies rather then proprietorship or partnership.
3. Tax Advantages
In all other entities income tax rate is 30%, but in the case of private limited company income tax rate is 15-25%
4. Separate Legal Entity
Company means separate entity from its director, company create with the process of law and end with the process of law. There is one saying "Members may come, members may go, But the company runs forever", which means company members and director may change any time.
5. Market credibility
In India people use to take serious if you are doing business with the name of Private limited, the simple reason behind this is the Indian government take close check of every company.
Get a call from expert so as they can understand business
Take a name approval from ministry of corporate affairs which you desired for your proposed firm
Send all the documents according to your business requirement as suggested by the expert.
Get digital signatures of all Shareholders/ Directors for signing
A LLP agreement must be formed as per conditions decided by the partners.
Once all the documents been send by you our team filled the application to the relevant department.
Getting a certificate
This is the last and final step of completion of your work to get your desired certificate
How Ovakil help in Company registration ?
Ovakil helps you for registering Company business,it usually take 4-5 days for all process
1. Company Incorporation certificate
We will provide company incorporation certificate after all process, this certificate is important for every company and required as a proof of company registration
2. Shareholders/ Directors DSC and DIN
Every director needs digital signature and director identification number (DIN) for company registration, we will provide all DSC and DIN
3. PAN and TAN
Permanent account number (PAN) and Tax allocation number (TAN) will be provide by us in this registration.
4. MOA and AOA creation
Memorandum of association (MOA) and Article of association (AOA) will prepared after understanding your business needs.
It’s a totally based on online process all you need to submit the document to us, and there is no need of physical appearance, just forward your documents on our Mail ID
After submission of all documents, normally it takes 4-5 days to incorporate Company
A Private company has one of the feature is Perpetual succession; it should go continuously without being effected by its member existence.
Any Doubts? Get a Callback from Ovakil Legal Panel.
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