Establishing your own business is always a proud moment for anyone. In India, it is becoming easy now to venture into establishingyour own business. However, certain procedures and registration process has to be done to set up a private limited company. This type is the most popular and prevalent type of company in the nation right now when it comes to a corporal legal entity. The registration is done under the Companies Incorporation Rules, 2014 and is governed by the Companies Act, 2013. Recently, MCA has made some vital changes in the registration policy and process as well the set of required documents.
The registration process
The private limited company registration process is as followed
- Minimum two people have to be named as the Directors,and the max limit of it is 15 Directors. It is important that one of them has to be an Indian resident. There is also the requirement for two people to act as the shareholder of the company.
- Name approval for the company is obtained from the Ministry of Corporate Affairs,and if the issue of rejection arises, then the resubmission of it can be done with two more names. It has been noted that in approximately one or two days, name approval is easily obtained.
- The digital signatures have to be obtained for the Directors as it is required for the signing of the incorporation application.
- The incorporation application has to be submitted to the MCA,and that application can be easily prepared and availed within one or two days.
- Once the incorporation application is submitted, then within one or two business days, the MCA will provide the private limited company incorporation certificate along with TAN and PAN.
Nowadays due to the digital era and its integration in every sector, you can also do the online private limited company registration.
Major reasons to incorporate a private limited company
By establishing it as a legal entity, the company will have a high range of legal capacities such as incurring debts and owning property. Until the company gets legally resolved, then it can continue in perpetual succession. Asthis is now a separate legal entity, the company is unaffected by the departure of any member. The feature of easy transferability ensures that the ownership of the company can be easily transferred by means oftransferring the shares. The company can also acquire property and alienate it in its name also.
The benefits of it are so many that it is the most preferred company type to establish by the entrepreneurs these days. Moreover, the feature of limited liability can definitely come in handy. Moreover, the credibility of the company will increase multiple folds when the registration is done as a corporate entity. As it will be a separate legal entity, multiple opportunities can be pursued under separate legal identities. Even, the chances of availing funding also become better as it would be a registered private limited company.
The registration procedure has become quite simple these days,and one can do all the registration process online also.