Every single day new startups are emerging. These startups have become a sign of global development. The young generation is full of new and creative ideas. They are enthusiastic and all up to making a difference in the current scenario of business and marketing. Each founder has a new and unique perception and approach.
According to the CTN News Getting start with your startup requires step by step planning and execution. After making a solid business plan, the next important thing to do is register your private company. Once you register your company, it means you are adding value, name and image to your business in the market. Avail of discounts with Fromaggio Coupon and Promo Codes from coupons bird.
To help you understand better, below are the features of a Private Limited Company.
- Members in a Private Limited Company. As per the provisions of the Companies Act, 2013, a minimum of two and a maximum of 200 members are require to form a Private Limited Company.
- Directors Requirement. A company can start its operation with a minimum of 2 directors.
- Limited Liability. The liability of the members of the private limit company is restricted to the number of shares they hold. Their personal assets are not at risk.
- Perpetual Succession of the Company. In perpetual succession, the company continues to exist in the eyes of the law despite the death, insolvency or bankruptcy of any of its members.
- Paid Up Capital. Vide the Companies Amendment Act, 2015, the minimum capital requirement for paid-up capital for the Private Company Limited has been remove.
Now let’s discuss a few important advantages of registration of a private company limited in India.
- Opening a business bank account. Once you register your company, you have a business current account in the name of the company. It helps you in the process of taking loans from banks or other financial institutions. Having a business bank account creates a level of trust that is important in the financial prospectus.
- Easy transfer of Ownership. In the case of a private limited company. The shares can be sell or transfer by the owner as per his wish without any complications. As the company is own by a smaller number of members, there is less confusion and complexity involve. Get any products at an affordable price by using the Czur Scanner Coupon.
- Limited Liability Protection. The biggest advantage of owning a private limited company is the financial liability of each shareholder is limit to the number of shares they hold in the company. None of their personal assets is at any kind of risk.
- Perpetual/ continued existence. The company does not come to an end or get close after the death of any or all shareholders. Neither the death nor the retirement of a member would affect the existence of the company.
Below are a few interesting FAQs about the Registration of a Private Limited Company in India.
- What is a Private Limited Company? A Private Limited Company is a business that is own by its shareholders. The liability of the shareholders of the company’s financial debts is limit.
- Is it possible for a small business to register itself as a private limited company? Yes, the Indian Government allows small business owners to register their companies as private limited companies. The registration helps these companies to build their credibility in the market. It helps in associating with other companies and taking loans.
- What documents are require to Register a Private Limited Company?
The documents that are require for the registration are:
- Photograph of all the Directors/Shareholders
- PAN card of all the Directors/ Shareholders
- Identity Proof of all the Directors/ Shareholders (Driving License, Passport, Voter Card).
- Electricity Bills or a similar utility bill for address proof of the company to be register.
- Is Registration for a Private Limited Company mandatory in India? No, you can start your business as an unregistered entity as a Proprietorship or Partnership Firm. However, if you wish to register as a Startup, it is mandatory to get the Registration for a Private Limited Company/LLP/Register Partnership Firm in India.
- What are the minimum requirements to register a Private Limited Company in India? Following are the minimum requirements to register for a Private Limited Company in India
- Two Directors, one of which has to be a Resident of India and a Citizen of India.
- Two Shareholders as the minimum criteria and both can be non-resident as well
- A registered office address to run the company for all correspondence
- Minimum capital requirement has been done away and now you can start the company with any amount of paid-up capital.