Follow The Five Step Procedure For Company Registration In India
- swaritadvisors
- Jul 5, 2018
- 3 min read
A private limited company in India is the most common and prevalent or popular kind of legal corporate entity. The company registration is governed by the ministry of corporate affairs also known as MCA. As per the Companies act 2013 and Companies rules of 2014, to incorporate a new company registration, a minimum of 2 shareholders and 2 directors are required. The directors can also be the shareholders like a natural person can be both a director as well as the shareholder while the corporate entity can be only the shareholder. Furthermore, most of the foreign nationals and/or the foreign corporate entities like the NRIs are allowed to be the directors and/ or shareholders of the supposed company with a straight and direct investment from foreign making this a preferred choice of a legal entity for foreign promoters.
Have a look at the following steps to apply for company registration in
India
1. Arrange all the list of required documents of the directors.
2. Apply for a digital signature if you haven’t got any. It’s also known as DSC
3. Preparation of the MOA and AOA and other legal documents.
4. Filing the incorporation form with ROC.
5. Get the final company registration certificate for incorporation.
Benefits of a company registration and a company’s rights
The reasons can be numerous, following are few mentioned.
· It is a separate legal entity – A private limited company is a separate legal entity and it is established under the companies act which gives it is firm’s legal right which also therefore makes your company a separate entity from your company’s shareholders and its directors.
· Ownership of the property – since your company has its own identity, it can also have its own property in its own name. This property could be anything, furniture, land, machinery or a building.
· It’s capacity for borrowing – any type of funds can be raised by a private limited company like – a) equity shares
b) Preference shares
c) Debentures issued by the company etc.
· Easy to raise funds and loans –The limited liability partnership or the private limited company can enjoy a wide range of options for raising funds through the bank loans, the angel investors, also the venture capitalists in comparison with the regular general partnership firm or sole proprietorship.
· Limited Liability Protection to Partner's personal assets–A lot of the times start-ups require to borrow money and take things on credit. In case of regular partnerships, the partners would normally have to put in their own savings and property in case they can’t rely on bank loans but it’s not the case for registered private limited companies with limited liability partnership.
· It’s favourite business structure for foreign investors. –These foreign investors love to investing a registered private limited company as it is structured so that less strings are attached to the investors.
· Easy to Sell–Registered private limited companies are easy to sell, very less documents are required and less cost is involved.
If you want to know more about the online company registration process then you must reach our experts who are well qualified, skilled and have years of experience in handling the issues that may occur in online legal processes. We at Swarit Advisors are the best in offering the expert consultation to our customers for any sort of online legal registration. We give complete guidance and step-by-step procedure to follow so that you don’t miss a single point and submit your application without any error. Feel free to contact us anytime we are 24/7 hr available at your end.
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