ADVANTAGES AND PROCESS INVOLVED IN PRIVATE LIMITED COMPANY REGISTRATION
Establishment of one’s Business and registering it as a company is very crucial for any businessman. This is because all the steps you take and documents you present should comply with all legal requirements that the government demands related to the business market. The entrepreneurs or start-ups willing to focus on setting up business or for individuals who want to start a business without any hassle relating to the legal procedure for incorporation of company will face mammoth tasks in doing the same. Many of them charge a hefty amount for carrying out your paper works, that’s where online registrations come to play. You can finish of your company registration in a quick turn-around time at affordable prices.
Most of the small businesses apply for private limited registrations. These types of business entities limits the number of shareholders to 200, owner liability to their shareholdings and also restricts the shareholders from publicly trading shares.
This type of Company registration is more prominent in India, when considering Kerala business sector Private Limited is the most prevalent and popular type of legal entity. The private limited company registration in India is governed by the Ministry of Corporate Affairs. All the private limited Companies are incorporated & regulated under the Companies Act, 2013 and also the Companies Incorporation Rules, 2014.
When you legally form a company or a corporate entity or in other words when you incorporate a company there are many things to take care of. Let us first discuss why we need to incorporate a company. There are several advantages of incorporation of a company, some of which are limited liability, transferable shares, separate property, perpetual succession, the capacity to sue, flexibility and autonomy. Private Limited businesses offer more advantages over partnership companies or sole proprietorship companies.
WHAT ARE THE MAIN ADVANTAGES OF INCORPORATING PRIVATE LIMITED COMPANY IN KERALA, INDIA
Equity Raise: Equity capital can be raised by a company from entities or individuals who are interested in becoming a shareholder. Hence, a private limited company is a must for for entrepreneurs looking to raise money from venture capital firms, hedge funds and private equity firms, a private limited company is a necessity.
Limited Liability Protection: In a private limited company, the unforeseen liabilities will not impact the shareholders, it will be limited to the company alone.
Separate Legal Entity: By registering as a private limited company one can cherish the privilege of having company’s own PAN, bank accounts, contracts, assets, licenses, approvals and liabilities in its unique name.
Perpetual Existence: A private company has perpetual existence and it will never end without a valid reason. Only if the company is wound-up by the Promoters or by the Government it will lose its existence. Hence, a private limited company can only be wound up on the grounds of non-compliance or the failure to comply with the mentioned rules and regulations.
Easy Transferability: The ownership of a private limited company can be transferred to any other person or legal entity in India abroad. It can also be easily transferred in part or whole to any person abroad as well. Further, the Directors can also be replaced effortlessly, since the shareholders are the ones who control the Board of Directors. Change of directors is usually done in order to make business continuity easy at all times.
STEPS FOR PRIVATE LIMITED COMPANY REGISTRATION IN KERALA, INDIA
Procure Digital Signature Certificate (DSC)
When planning to get registration for your company in Kochi first and foremost step to take is to prepare well. Make sure that you know the in and out of your business, company market and current economic laws and regulations. In order to start with the registration procedure we will have to procure the DSCs of the Personnel involved in Pvt. Ltd. Incorporation in India. This requirement of DSC’s is for filling the e-forms on online portal of MCA. We have to start with this process as the Ministry has prescribed this for the online registration procedure for all company incorporation and other applications. The DSC, commonly known as Digital Signature Certificates are issued by the Certifying Authority in the form of a token and its validity extend to 1 or 2 years.
The direct personnel involved in the company registration are the Subscribers and Directors for proposed company in India. The Subscriber is a person who acts as a promoter of the company and also its proposed shareholders. All the shareholders and directors are required to file spice forms e-AOA and e-MOA by affixing Digital Signature Certificates, whereas the proposed directors shall acquire DIN by making an online application in spice form. Nowadays DIN is automatically generated in spice form filing.
Obtain Director Identification Number
The Director Identification Number commonly known as DIN is a unique number allocated by Ministry of Corporate Affairs to an individual applying for allotment of DIN. Director must have only one DIN number,If by mistake two DIN numbers are allotted, they should intimate the MCA. Unless it is surrendered or withdrawn the number is allotted a lifetime validity by the Ministry.During the private limited company incorporation, the directors of the company shall acquire and intimate the Director Identification Number. The Director Identification Number obtained can be used for appointment for any other company and also as a Designated Partner in the LLP.
Reservation of company name
Before filling up the application to incorporate and register a private limited company in kerala the name for the company shall be reserved. An Application for this shall be made in e-Form INC – 1 by making required payment. In a single application you may provide maximum of six names in preferential order along with its significance. The concerned professional will search for availability of name before applying so that the applicant can create the names accordingly. The Registrar enjoys 100% discretion for the company name approval.
Drafting MoA & AoA
Memorandum of Association of Company and the Articles of Association have vital importance and shall be drafted very carefully. It would be advisable to consider a professional for this.
Both the documents shall be filed in SPICe forms along with application for company registration and formation in India.
List of Documents required for Company Registration
Please note : Soft copies of mentioned documents are needed for incorporation process.
– PAN Card of Shareholders/ Directors
– Passport/Driving Licence/Election ID
– Aadhaar Card
– Latest bank statement wit complete address of shareholder and director
– Rental Agreement mentioning the Registered Office address in INR 200/- Stamp Paper
– NOC from the Owner
– Utility Bill mentioning the registered office address example: KSEB bill & Profile, BSNL Landline Bill, Post Paid Bill of any telecom network not exceeding 30 days.
– DIR- 2 : Consent to act as Director of the company
– Declaration from the Shareholders and Directors in company name
Spice Form Filing
Once the documents are ready to file , using the MCA portal Pre- Scrutiny of documents are completed. e-MOA ,e-AOA and other documents listed are uploaded in the spice form in portal.
Certificate of Incorporation
Certification of Incorporation is given by the Ministry of Corporate Affairs after successful completion of company registration. It have the corporate identity number,PAN number and TAN number of the company.
Start a Bank Account
Once incorporation is done, company can open a bank account to raise the paid up capital before making any transaction from the client or any other source.
Business Commencement Certificate
After raising the paid up capital of the company, bank statement is required to file business commencement form.
Start the Business
Registrar of Companies (ROC) will give the approval for business commencement and the owner can start the business hassle free.