“Let the struggle in today’s beginning, be your best decision”
This quote stands true especially in starting a new venture. One of the most critical decisions to be made by an entrepreneur while starting a business is the selection of correct type of business entity.
According to the Companies Act, 2013, a PRIVATE LIMITED COMPANY REGISTRATION IN INDIA limits the;
-right to transfer its shares to the public.
-limits the number of members to maximum 200.
-prohibits any invitation to the public for selling its shares or dealings in its shares.
Procedure for Pvt. Ltd. Company Registration in India:
Incorporating a private limited company is a simple procedure provided all the legal provisions are followed.
Step 1: Documents required:
-Address proof of the registered office
-Identity proof of Directors and shareholders
– Other signed documents.
Step 2: Check the availability of the name:
After the documents are collected, apply for availability of the decided name. The names should be submitted to the MCA. Approval from MCA can be obtained within 5 to 7 days.
Step 3: Company registration in India:
Pvt Ltd. Registration documents can be submitted to the MCA along with an application for incorporation. MCA will usually approve the application for pvt ltd. company incorporation in 5 to 7 days, subject to their processing time.
Advantages of a private limited company:
- Easy funding availability: It is comparatively easier to get a business sponsored by a businessman.
- Limits the risk to personal assets, due to the limited liability.
- Pursue multiple business opportunities: Provided mentioned in the Articles of the company.
- It is important for any business today to have the option of providing stock ownership or ESOPs to employees. Only the private limited company can offer stock ownership and ESOPs.
- Private limited companies and limited companies are the only types of entities that allow for Foreign Direct Investment upto hundred percent through the automatic route, meaning, any foreign entity or foreign person can invest in a company without any prior government approval.
Get your Company Registered by Company Vakil Experts at most affordable price in India, for more details on the whole process of Private Limited Company Registration in India have a free consultation with their Legal Consultants, Chartered Accounts, Company Secretaries and Advocates.