Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private limited company is governed by the Companies Act 2013. Today, startup and young generation entrepreneurs prefer private companies over traditional proprietorship and partnership firms due to its many advantages.
Separate Legal Entity – A company is a legal entity and a juristic person established under the Companies Act.
Limited Liability – Unlike proprietorships and partnerships, in a limited liability company the liability of the members in respect of the company’s debts is limited only upto the unpaid amount of shares.
Easy transferability of shares – Shares of a company limited by shares are easily transferable by a shareholder to any other person. So, it provides easy mechanism to enter and exit the company.
Borrowing Capacity – A company enjoys better avenues for borrowing of funds. Banking and Financial Institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.
Trusts of foreign parties – Foreigners prefer to deal with the registered companies. So, Companies create trust and preference for import and export.
Low Tax Rate – Tax rate on Companies having turnover upto Rs. 250 crore is reduced to 25% unlike partnership firms which is tax rate having 30%.
Get Class 2 DSC of first subscribers and Directors from the Certified Authority or consultants.
File “Reserve Unique Name” in MCA Portal. RUN is an online form in which applicants have to fill the information like proposed name, activity and type of company online. You can attach proposed object and NOC of trademark owner, if proposed name is subject to trademark. You can propose maximum 2 names and the fees of RUN is Rs. 1000/-. Name reserved shall be valid for 20 days from the date of approval of Name.
After approval of name or for Incorporation of Company applicant have to prepare the following below mentioned Documents:
Once all the above mentioned documents are executed then applicant has to fill the information in the e-form SPICe -32, E-MOA and E-AOA in 33 and 34. SPICe form is a single window clearance form and use for the following purposes: