Private Limited Company
This is the most suitable for startups looking for Investor Funding and Growing Businesses
Our Team at Bizzonns consists of qualified and vast experienced personnel, who after attending to your requirements, will recommend you the best suitable form for your business.
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12+ Years Experienced Team of Professionals
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Overview
Private Limited is a popular and oldest format of business in India. It is the most preferred format for start-ups as the regulation and law of private limited safeguards the interests of promoters, individuals, and the business connected with the Company, directly or indirectly. Earlier it was regulated through the Companies Act 1956 and now the Companies Act 2013 is in practice. Private Limited is a reliable and most favored format among angel investors, capital ventures, and other forms of investors. While opting for a business format, entrepreneurs find it difficult to choose the best suitable format as per their requirement, whether they should go for Proprietorship, Partnership, LLP, or Company. The fact is, that every business form has its own advantages and disadvantages. Each business form is suitable in its own way, depending upon the requirements of the business and other factors. The first step is to opt for the most efficient and suitable format before establishing and executing any business plan.
Required Documents For Private Limited
Promoters
PAN Card of each Director & Shareholder
Address Proof (Driving License, Passport, Aadhar Card)
Latest Residence Proof (Electricity Bill, Water Bill, Gas Bill, and Bank Statement)
Passport Size Photograph of each Director & Shareholder
All the above documents of foreign directors and foreign parent company, need to be apostilled and notarized from the origin country
Office Premises
Longitude and latitude of office address
Latest Electricity Bill, Gas Bill, Water Bill and Mobile postpaid bill (Any one)
No Objection Certificate (NOC) from Office address owner
Benefits Of Private Limited
Limited Liability
Limited Liability means being legally responsible for the debts of the company. Thus, the liability of the members will be limited only to the shares held by them. It means, if the company cannot make its payment towards its debts in the future, then the liability of members will only be to the extent of the number of shares held by them.
Separate Legal Entity
A company is an artificial person created by law; it is considered as a legal person, which means it can enter into contracts and own assets in its own name. Subsidiary Foreign Company acts as a distinct legal entity from the parent company.
Ease in Fund Raising
Investors prefer Private Limited Companies for investing their money, due to high transparency, and ease in transfer of ownership, as compared to others. Private limited can raise funds through Debt and Equity both from investors and financial institutions.
Reliable
As all details of a Private limited company is easily available at MCA online portal and anyone can access it, which helps business and stakeholders while dealing with the company. Clients have more faith in Private limited companies due to transparency.
Perpetual Existence
It means that a private limited can continue indefinitely. The continuation of the business will not get affected by the condition of its owners. Private limited can only be dissolved by the corporation itself or the controlling authority.
Better Accountability
Foreign Subsidiary company accounts are easily available at the Ministry of Corporate Affairs (MCA) Portal. Anyone can access them and this acts as a transparency to their work and this helps in taking better investment decisions for others.
Easy to Incorporate
With the launch of MCA Version 3, now company formation is easy and fast in India. It is 100% online, has Basic KYC Documentation, and with minimum time duration. Closure of the company is also easy and online with minimum documentation
Ease of doing Business
With the various initiatives launched by the Indian Government a Private limited business can enjoy various government scheme benefits. Private Limited also has a minimum income tax rate and can take tax exemptions under Startup India Scheme.
Compliances For Subsidiary Company
First-time Compliance:-
After company incorporation, it needs to comply with the following list of Compliances with MCA –
Commencement of Business (INC 20A) – This needs to be filed within 180 days of Company Formation, once the Bank account is opened and the share application money is transferred into that account.
Share Certificate Franking and Stamping – Company needs to issue a share certificate to all the shareholders and needs to be stamped within 60 days of company incorporation.
Auditor Appointment – This Needs to be done within 30 days of Company Formation after holding an Annual General Meeting. The company needs to appoint a CA who will audit its books of accounts after the end of the financial year.
Process
ExploreDigital Signature Certificate (DSC)
1
Persons who will be acting as a director and shareholders of the proposed company, need to apply for DSC. It is required to sign and validate all the documents.
Name Approval
2
Proposed name needs to be approved by ROC. ROC will check the name availability on different parameters and then will issue the approval letter.
Company Incorporation
3
Once the name is approved, the application needs to be made for the formation of the Company in Form Spice+ and the same is verified by a professional CA, CS or CMA.
Drafting of MOA & AOA
4
Along with Spice+, the MOA & AOA of the Company also need to be filed. A Memorandum of Association (MOA) defines the fundamentals of the company and the Articles of Association (AOA) contains the rules & regulations of the Company.
Incorporation Certificate
5
After verification of Spice+, Roc will issue the Certificate of Incorporation. Incorporation Certificate gets issued within 3-4 working days.
PAN & TAN Allotment
6
With a certificate of incorporation pan and tan allotment will be made and a soft copy of pan and tan will be received by mail from the Department.
Opening Bank Current Account
7
After receiving COI and other relevant documents, Private Limited can open the bank’s current account in the name of the Company.
Any Questions? Answered
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