Reaching the peak of the industry is the main aim of any business that has once started its operation. Registration of a business as per Indian law is necessary if it wants to operate as a private limited company. The process of Private Limited company registration is quite simple and quick but has some rules. Properly filling up the form is very essential for this process as it deals with the companies’ act of 2013.
Before getting to the details of the registration process, you must know about the rules that make the private limited company a separate entity. The formation of this company follows a separate set of rules as per the law.
What is Private Limited Company?
After the registration procedure, a privately owned small business in India can get the title of private limited. These companies can have shareholders but the number is limited to 200 and the shareholders cannot trade their shares. The owner of the company must have an authorized capital of 20 lakhs to apply for registration. Added to that, there must be two shareholders for initiating the business procedure of this company.
Why Need to Register of Company?
To get your company registered as per the law, you have to fill out some forms and pay the registration fees. You can avail numerous benefits if you enroll your business in the companies’ law. Here are some benefits, which you can count also as reasons, for the enrollment of the business as a private limited company.
- Distinct legal entity
The Indian companies’ laws provide a status of separate legal entity to every company that operates. Your business will get a distinct name along with a separate persona for the company. The company will get operated individually and no one will be responsible for any loss here. Interestingly, the creditors of your company cannot proceed with any legal claim over your assets after you get a separate identity for your company.
- Limited liabilities
The shareholders of this company have limited liabilities against the company’s debts. In simple words, no person will be held separately for any debt of the company if the company made a loss in any financial year. Hence, the shareholders have to bear the loss only against their shares’ nominal value. The company will get this benefit only after the completion of due registration.
- Enhance credibility
Having a separate entity will enhance credibility against all the functions of your business. You can bear the seal of your company and get all the operations done in its name. You can improve your business functions and enhance your market base when you have a separate name for your company.
- Derive foreign funds
The Companies law in India allows separate business entities to receive foreign funds for business purposes. Therefore, a business, which bears a separate seal in its name, can handle the foreign fund. So you can also attract funds from foreign nations for the development of your business functions if you register your business name with the due procedure.
What documents are required for private limited company?
Compiling all the documents before initiating the company registration procedure is very much essential. You must prepare the following documents to start the process.
- PAN and Bank details of the directors.
- Proof of address of the directors
- Aadhaar details and passport-size photographs.
- Rent agreement (for establishing the office)
Can you trust a solution provider for the registration?
Well, you can contact a solution provider that deals with business registration for your business. These agencies know the exact details of the process and thus they can help you in every stage of this process. These agencies will fill out your form and pay the Private Limited company registration fees within the time limit. Also, they can help your business to compile separate Articles of Association (AoA) and Memorandum of Association (MoA). They will help you in choosing a unique name for your private limited company and simplify the overall registration process at an affordable rate.
Finally, you can transform the function of your traditional business operation into an efficient base after this procedure. The customer base of your business will get increased as the suffix (Pvt Ltd) will act as a trust factor among the customer base. Moreover, you can avail all the mentioned benefits once the procedure gets completed.