We are Company Registration Consultants in Hadapsar, Pune
Private Limited Company, the most popular legal structure for businesses, should be chosen by anyone looking to build a scalable business. It is one of the most popular legal structure option for businesses in India. A Private limited company has a minimum of two members and a maximum of fifty members. A director of a private limited company has limited liability to creditors. In case of a default, banks / creditors can sell only company's assets but not the personal assets of a directors. A Private limited company is considered one of the most popular corporate entity amongst the small, medium and the large businesses in India due to its various advantages.
AS PER THE COMPANIES ACT 2013, THE FOLLOWING ARE THE TYPES OF COMPANIES THAT CAN BE INCORPORATED IN INDIA
1. PRIVATE LIMITED COMPANY
2. PUBLIC LIMITED COMPANY
3. ONE PERSON COMPANY
4. SECTION 8 COMPPANY OR NGO OR NON PROFIT ORGANISATION
PRIVATE LIMITED COMPANY
Private Limited Company is the most popular type of corporate legal entity in India. Private limited company registration is governed by the Companies Act, 2013 and the Companies Incorporation Rules, 2014.
To Form a private limited company, a minimum of two shareholders and two directors are required. A natural person can be both a director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.
The average time taken to complete company formation is about 10 working days, subject to processing time taken by the MCA Centralized Registration centre.
ADVANTAGES OF FORMATION OF THE PRIVATE LIMITED COMPANY:
1. SEPARATE LEGAL ENTITY
2. PERPETUAL SUCCESSION
3. LIMITED LIABILITY
4. FREE & EASY TRANSFERABILITY OF SHARES
5. OWNING PROPERTY
6. CAPACITY TO SUE AND BE SUED
7. DUAL RELATIONSHIP
8. BORROWING CAPACITY
STEPS INVOLVED IN THE FORMATION OF A PRIVATE LIMITED COMPANY
1. OBTAINMENT OF DSC (DIGITAL SIGNATURE CERTIFICATE) FOR ALL DIRECTORS AND SHARE HOLDERS.
2. APPLICATION OF DIN (DIRECTOR IDENTIFICATION NUMBER) FOR ALL THE PROPOSED DIRECTORS.
3. OBTAINING THE NAME APPROVAL FOR THE PROPOSED PRIVATE LIMITED COMPANY.
4. DRAFTING THE MEMORANDUM OF ASSOCIATION AND ARTICLES OF ASSOCIATION FOR THE COMPANY.
5. PREPARATION OF THE ATTACHMENT FORMS FOR THE INCORPORATION VIZ., INC 8, INC9, DIR 2, AND OTHER APPLICABLE AFFIDAVITS AND DECLARATIONS.
6. FILLING OF THE E FORMS INC 32, INC 33 AND INC 34 FOR THE INCORPORATION OF THE COMPANY
7. OBTAINMENT OF THE CERTIFICATE OF INCORPORATION, PAN AND TAN .
DOCUMENTS REQUIRED FOR THE INCORPORATION OF PRIVATE LIMITED COMPANY:
i) Passport size photograph
ii) PAN Card copy
iii) Proof of Identity (Any one of the below)
- Passport
- Aadhar Card
- Driving License,
- Voter ID
iv) Proof of Residence (in the name of applicant) (Any one of the below)
- Bank Statement
- Electricity Bill
- Telephone Bill
- Mobile Bill
v. Proof of Registered Office Address:
A) Rent Agreement AND
B) Any one of the below (Mandatory)
- Electricity Bill
- Telephone Bill
- Gas Bill
- Mobile Bill
PUBLIC LIMITED COMPANY
The company's growth is always correlated to the capital potentiality and the business growth.
While the private limited company will give a base to run the business for any entrepreneur definitely due to the number of shareholders constraint , that form of organization will lack the capital inducement to the company which will hinder its growth potentiality.
The other form of running of the business with the unlimited shareholders is Public Limited Company. In case of a public limited company there is no restriction regarding the number of shareholders, there can be any number of shareholders.
A public limited company after satisfying the stipulated conditions made by the SEBI can go for IPO (initial Public Offer) and be listed in any of the stock exchanges in India.
To Form a public limited company there is should ne minimum 3 directors who are the natural persons and seven shareholders who can be natural persons or corporate legal entities.
ADVANTAGES OF THE PUBLIC LIMITED COMPANY:
1. RAISING CAPITAL THROUGH PUBLIC ISSUE OF SHARES
2. WIDENING THE SHAREHOLDERS SHARES BASE AND SPREADING RISK
3. INCREASE FINANCE OPPORTUNITIES
4. POSSIBILITY OF LISTING OF SHARES IN STOCK EXCHANGES
5. TRANSFERABILITY OF SHARES
STEPS INVOLVED IN THE FORMATION OF A PUBLIC LIMITED COMPANY
1. OBTAINMENT OF DSC (DIGITAL SIGNATURE CERTIFICATE) FOR ALL DIRECTORS AND SHARE HOLDERS.
2. APPLICATION OF DIN (DIRECTOR IDENTIFICATION NUMBER) FOR ALL THE PROPOSED DIRECTORS.
3. OBTAINING THE NAME APPROVAL FOR THE PROPOSED PUBLIC LIMITED COMPANY.
4. DRAFTING THE MEMORANDUM OF ASSOCIATION AND ARTICLES OF ASSOCIATION FOR THE COMPANY.
5. PREPARATION OF THE ATTACHMENT FORMS FOR THE INCORPORATION VIZ., INC 8, INC9, DIR 2, AND OTHER APPLICABLE AFFIDAVITS AND DECLARATIONS.
6. FILLING OF THE E FORMS INC 32, INC 33 AND INC 34 FOR THE INCORPORATION OF THE COMPANY
7. OBTAINMENT OF THE CERTIFICATE OF INCORPORATION, PAN AND TAN .
DOCUMENTS REQUIRED FOR THE INCORPORATION OF PUBLIC LIMITED COMPANY:
i) Passport size photograph
ii) PAN Card copy
iii) Proof of Identity (Any one of the below)
- Passport
- Aadhar Card
- Driving License,
- Voter ID
iv) Proof of Residence (in the name of applicant) (Any one of the below)
- Bank Statement
- Electricity Bill
- Telephone Bill
- Mobile Bill
v) Proof of Registered Office Address:
A) Rent Agreement AND
B) Any one of the below (Mandatory)
- Electricity Bill
- Telephone Bill
- Gas Bill
- Mobile Bill
ONE PERSON COMPANY
A Typical Indian style of doing business is proprietary concern and if you add a corporate identity to it becomes One Person Company. Yes Of late this form of organization has been recognized by the government in the form of One Person Company.
To form a one person company there has to be minimum one shareholder, one director and one nominee all of them have to be natural persons.
ADVANTAGES OF THE ONE PERSON COMPANY:
1. LIMITED LIABILITY PROTECTION TO DIRECTORS AND SHAREHOLDERS
2. LEGAL STATUS AND SOCIAL RECOGNITION FOR YOUR BUSINESS
3. TAX FLEXIBILITY AND SAVINGS
4. EASY TO GET LOAN FROM THE BANKS
5. COMPLETE CONTROL OF THE COMPANY WITH THE SINGLE OWNER
6. HELPS FOR TESTING OF BUSINESS MODEL AND ENABLES FUNDING
STEPS INVOLVED IN THE FORMATION OF ONE PERSON COMPANY
1. OBTAINMENT OF DSC (DIGITAL SIGNATURE CERTIFICATE) FOR ALL DIRECTORS AND SHARE HOLDERS.
2. APPLICATION OF DIN (DIRECTOR IDENTIFICATION NUMBER) FOR ALL THE PROPOSED DIRECTORS.
3. OBTAINING THE NAME APPROVAL FOR THE PROPOSED ONE PERSON COMPANY.
4. DRAFTING THE MEMORANDUM OF ASSOCIATION AND ARTICLES OF ASSOCIATION FOR THE COMPANY.
5. PREPARATION OF THE ATTACHMENT FORMS FOR THE INCORPORATION VIZ., INC 8, INC9, DIR 2, AND OTHER APPLICABLE AFFIDAVITS AND DECLARATIONS.
6. FILLING OF THE E FORMS INC 32, INC 33 AND INC 34 FOR THE INCORPORATION OF THE COMPANY
7. OBTAINMENT OF THE CERTIFICATE OF INCORPORATION, PAN AND TAN .
DOCUMENTS REQUIRED FOR THE INCORPORATION OF ONE PERSON COMPANY:
i) Passport size photograph
ii) PAN Card copy
iii) Proof of Identity (Any one of the below)
- Passport
- Aadhar Card
- Driving License,
- Voter ID
iv) Proof of Residence (in the name of applicant) (Any one of the below)
- Bank Statement
- Electricity Bill
- Telephone Bill
- Mobile Bill
v) Proof of Registered Office Address:
A) Rent Agreement AND
B) Any one of the below (Mandatory)
- Electricity Bill
- Telephone Bill
- Gas Bill
- Mobile Bill
SECTION 8 COMPPANY OR NGO OR NON PROFIT ORGANISATION
Section 8 Company in Companies Act, 2013, which pertains to a established 'for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object', provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members. Therefore, Section 8 Company is a company registered under the Companies Act, 2013 for charitable or not-for-profit purposes
section 8 Company is registered under the Central Government's Ministry of Corporate Affairs. Trusts and Societies are registered under State Government regulations. A section 8 company has various advantages when compared to Trust or Society like improved recognition and better legal standing. Section 8 company also has higher credibility amongst donors, Government departments and other stakeholders.
ADVANTAGES OF THE SECTION 8 COMPANY:
1. TAX BENEFITS U/S12AA AND U/S 80G OF INCOME TAX ACT TO THE DONOR
2. MINIMUM PAID-UP CAPITAL IS NOT REQUIRED
3. EASE AT TRANSFER OF TITLE/OWNERSHIP
4. STAMP DUTY REGISTRATION IS EXEMPTED
5. ANY REGISTERED PARTNERSHIP FIRM CAN BE A MEMBER IN ITS INDIVIDUAL CAPACITY
6. GREATER FLEXIBILITY
STEPS INVOLVED IN THE FORMATION OF A SECTION 8 COMPANY
1. OBTAINMENT OF DSC (DIGITAL SIGNATURE CERTIFICATE) FOR ALL DIRECTORS AND SHARE HOLDERS.
2. APPLICATION OF DIN (DIRECTOR IDENTIFICATION NUMBER) FOR ALL THE PROPOSED DIRECTORS.
3. OBTAINING THE NAME APPROVAL FOR THE PROPOSED SECTION 8 COMPANY.
4. DRAFTING THE MEMORANDUM OF ASSOCIATION, ARTICLES OF ASSOCIATION, ESTIMATED ANNUAL INCOME FOR 3 YEARS AND OTHER DOCUMENTS FOR THE COMPANY.
5. APPLYING FOR THE ISSUE OF LICENSE FOR THE PROPOSED SECTION 8 COMPANY.
6. PREPARATION OF THE ATTACHMENT FORMS FOR THE INCORPORATION VIZ., INC 8, INC9, DIR 2, AND OTHER APPLICABLE AFFIDAVITS AND DECLARATIONS.
7. FILLING OF THE E FORMS INC 32, INC 33 AND INC 34 FOR THE INCORPORATION OF THE COMPANY
8. OBTAINMENT OF THE CERTIFICATE OF INCORPORATION, PAN AND TAN .
DOCUMENTS REQUIRED FOR THE INCORPORATION OF ONE PERSON COMPANY:
i) Passport size photograph
ii) PAN Card copy
iii) Proof of Identity (Any one of the below)
- Passport
- Aadhar Card
- Driving License,
- Voter ID
iv) Proof of Residence (in the name of applicant) (Any one of the below)
- Bank Statement
- Electricity Bill
- Telephone Bill
- Mobile Bill
v) Proof of Registered Office Address:
A) Rent Agreement AND
B) Any one of the below (Mandatory)
- Electricity Bill
- Telephone Bill
- Gas Bill
- Mobile Bill
