Producer Company
Registration in India
An Overview :
Private companies are the most popular choice for business formation among startups and businesses striving for higher growth. Business entities controlled by a small group of people are called Private Limited Companies. A private limited company offers startups stability and development opportunities. Startups prefer a company as a business structure because it allows outside funding to be raised easily, limits the liabilities of its shareholders, and enables them to offer employee stock options to attract top talent. To start a private limited company, a minimum of 2 members is required and a maximum number of 200 members as per the provisions of the Companies Act, 2013. Thanks to the MCA online process, company registration in India has also become more accessible and efficient today.
The legal existence of a private limited company is separate from its members. Companies must hold board meetings and file annual returns with the Ministry of Corporate Affairs (MCA). They tend to be viewed with more credibility than an LLP or General Partnership. Further, the status of a company is not altered by changes in members and management. A private company may issue debentures to any number of persons, the only condition being that an invitation to the public to subscribe to debentures is prohibited.
Typically, company registration takes 10-15 business days to complete. Providing the highest customer satisfaction and timely delivery of services are Legalfin Advisors' objectives. Our network of company secretaries and chartered accountants are of best-qualified professionals. Throughout the process, assistance and communication are offered regularly by Legalfin Advisors' experts.
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Vital Features of a Private Limited Company
Limited Liability
Members are only liable for the number of shares they hold. In the event of any loss to the Company, shareholders may be responsible only for their claims. No shareholder’s assets are at risk.
For Raising Funds
It is vital for fast-growing businesses that seek venture capital funding (VC) to register as a private limited company because only private limited companies can offer these investors shares and seats on the board of directors.
Paid-up Capital
Minimum capital for a Private Limited Company must be Rs. 1 lakh or such a greater amount as the government prescribes from time to time. There is, however, no such requirement under the recent amendment.
Perpetual Succession
In the eyes of the law, the Company continues to exist even if one of its members passes away, becomes bankrupt, or is insolvent. In other words, the Company’s life continues forever.
FAQs
What are the requirements for company registration in India?
The number of members must be between 2-200.
Two directors are necessary, of whom at least one must be Indian.
And two shareholders. In this case, a shareholder may also serve as a director. The registered office address for a business must be in India.
What are the qualifications for becoming a private limited company director?
After acquiring a Director Identification Number (DIN), any natural person above 18 years can become a director in a company. A foreign national can also become a director since there are no specific requirements for citizenship or residency.
How much capital is required for company registration in India?
At the time of registration, the authorized capital of at least INR 1 lakh must be provided. A minimum paid-up capital requirement has been eliminated as part of the government's initiative to simplify business registration in India. A shareholder, however, must subscribe to at least one share for the registration to bring in the proper amount required for its operation.
How do I register my small business as a private limited company?
Is it possible for company registration in India using a residential address?
What are MOA and AOA?
When a Private Company is registered, what are the statutory requirements?
As soon as the company registration in India is done, it should follow the following requirements as a priority:
- The Company's current account must be opened within 30 days following receipt of its PAN card.
- Statutory Auditor Appointment
- Depositing the paid-up capital as indicated during registration
- Issuance and allotment of shares
Does a private company have to comply with the requirements of Annual Compliance?
What do authorised capital and paid-up capital mean?
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