PRIVATE LIMITED COMPANY
A Private Limited company is the most common vehicle to carry on business for an entity intending to make a profit and enjoy the benefits of an incorporated entity, particularly limited liability. Company is an artificial person created under the Companies Act 2013, and governed by Ministry of Corporate Affairs (MCA).
REASONS TO OPT FOR A PRIVATE LIMITED COMPANY
It is important for any business today to have the option of providing stock ownership or ESOPs to employees. Only private limited companies and limited Companies can offer stock ownership and ESOP plans.
Today small businesses are being out-competed by larger businesses. Hence, it is essential for all businesses to grow quickly, and have the ability to attract funding from any source. Thus, a private limited company is the ideal type of business entity for growing businesses.
If a business owner has “limited liability” protection, it means that only the assets of the business are at risk, and not the promoter’s personal assets such as personal bank accounts, cars and houses.
Today customers, vendors and investors look for credibility in the businesses they deal with. If a business started as a proprietorship or partnership firm, the business is not registered with Ministry of corporate affairs and its information is not available in public domain. In starting a private limited company, the information relating to the company, such as name of the company, date of incorporation, registered office address, status of the company, and other information are made available in a publicly searchable database. This feature makes it easy to authenticate the existence of the business, improving business credibility.
Businesses started as a proprietorship or partnership would have trouble pursuing many opportunities that come their way, as they are not considered separate legal entities and are tied to the promoter. Starting a private limited company, on the other hand, would allow the promoter to pursue multiple opportunities as the business evolves over time.
Private limited companies offer the best type of exit strategy for all promoters. Only shares of a company can be sold or transferred in part or whole to another entity easily without any hassles, while the business remains a going concern. Therefore, starting a private limited company provides a tremendous edge in planning and executing a business exit plan.
Private limited companies and limited companies are the only types of entities that allow for Foreign Direct Investment of upto 100% through the automatic route, meaning, any foreign entity or foreign person can invest in a company without any prior government approval. Entities like proprietorship, partnership and limited liability partnership require prior approval from the Government to accept investments from foreign entities. Therefore, if your business has aspirations for going international, then it is best to start a private limited company.
DOCUMENTS REQUIRED FOR COMPANY FORMATION
MINIMUM REQUIREMENT
Two Directors / Shareholders, Registered office, Main objects of proposed company.
PROPOSED NAMES OF COMPANY
Maximum Two names can be applied in a single time.
PAN CARD COPY
For all subscribers and directors
(mandatory for Indian national)
IDENTIFICATION PROOF OF SUBSCRIBERS AND DIRECTORS
Aadhaar / passport / voter id / driving licence etc. (passport is mandatory for NRI / Foreign National)
ADDRESS PROOF OF SUBSCRIBERS AND DIRECTORS
Latest bank statement / utility bill / telephone bill
Latest passport size photographs
Email id, mobile number, educational qualification, place of birth, occupation of applicants
Rent agreement and rent receipts, noc from landlord, latest utility bill.
If Applicant Has Registered Trademark Of Proposed Name
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Copy of Trademark Application or Trademark Certificate.
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If The Promoter Is A Foreign Company or Foreign National or Non Resident
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1) NOC and Objects of the proposed company in the form of Board resolution, to be executed by Parent company. Board Resolution for Investment in Indian Company. It should also mention the details of representative Director in Indian company.
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Note – Board Resolution/NOC to be signed by Director of Parent Company on the letter head of the company.
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Board Resolution shall be Duly attested by foreign notary and apostilled.
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2) copy of Memorandum or Charter of Parent Company. (in English)
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3) Registration certificate of Foreign company. (Duly attested by foreign notary and apostilled)
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4) In case of foreign shareholders and directors, the most important step is to get identity and address proof attested as per the relevant Guidelines issued by Controller of Certifying Authorities, Government of India. This is necessary for getting digital signature and for getting Director Identification Number (DIN) for the foreign citizens. The requirements are different for different categories of foreign citizens:
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If Foreign applicant Native country is a signatory of Hague Convention : for attestation, proof of identity, address proof and other documents should be notarized by the public notary of that foreign country and APOSTILLED by the competent authority of that foreign country.
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If Foreign applicant Native country is not a signatory of Hague Convention : for attestation, proof of identity, address proof and other documents should be notarized by the public notary of that foreign country and CONSULARIZED by the competent authority of that foreign country.
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Apart from these documents we need the following documents which will be prepared by us. All these documents are also required to be notarized and apostilled/ consularized.
- Digital Signature application form
- Affidavits and declaration from directors and shareholders
- MOA and AOA
What Our Company Registration Package Included?
Name Check & Approval
Preparation & Filing of MOA & AOA
Issuance of Certificate of Incorporation
GST Registration
PF ESIC Registration
Import Export Code
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