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Private Limited Company, is the best corporate structure to start your own business. Private Limited Company will be registered under the Companies Act, 2013. In this post, we will show you the Requirement for Private Limited Company Registration India.
Legal Requirement for Private Limited Company Registration in India:-
Private Limited Company plays a significant role in any developing economy and the most popular form of business entity. As the introduction of the Companies Act, 2013 has made the incorporation easier. Let’s focus on the benefits of a private company as a startup:
Memorandum of association is the document which states the objects for which the company is incorporated. It has the following clauses:
Also, Read: 5 Steps for Forming a Private Limited Company in India.
Articles of association: The Articles of association provides a framework for how the company should be managed by the directors
Minimum Paid-up Capital is Rs.100000/-
Any person intending to become a director in a company must apply for the director identification number, issued by the Ministry of Corporate Affairs.
The director has been entrusted with the responsibility of managing the company in the best efficient manner. The responsibility of a director depends upon the kind of directorships he holds in the company. For instance, an executive director or a managing director has a greater responsibility than a non-executive director who might hold the directorship as an expert or consultant. A director is liable for misconduct or fraud or if found guilty of default.
A Registered Office is required to hold an annual general meeting, for keeping records and receiving correspondence from all the statutory/ government authorities. The registered office can be owned by the company or rented premises also. The registered office of the company determines its jurisdiction for registration.
Yes, the company can change the registered address any time after following the specified procedure
Our Recommendation: Importance of Digital Signature Certificates or DSC’s in Personal and Business Transactions.
Less administrative and annual compliance as compared to the public limited company.
Yes, a possible subject to FDI guidelines in any country using a wholly owned subsidiary, joint venture, etc.
Yes. Any foreign national or company or an NRI (non-resident Indian) can become a director, or hold a share of a private limited company in India. But, at least one director on the Board of Directors of a private limited company in India must be a Resident of India. However, holding shares of a private limited company in India by foreign nationals/companies will be subject to the contemporary FDI Guidelines of India.
It depends basically upon the documents required, the authenticity of documents submitted by the director/shareholder, the processing time required for filing forms, the time is taken by the concerned government authorities to may range from one to two weeks
Any individual can become a shareholder in a private limited company. For becoming a director in a company, no professional or educational qualification is required.
The digital signature is the digital code created for the purpose of affixing them to digital documents and proving equal authority as the handwritten signature. DSC validates the authenticity of the signature.
Yes, a proprietorship business can be converted into a Private Limited Company.
Many businesses started as LLP may now want to convert to a private limited company due to growth in business or for infusion of equity capital. However, the conversion of LLP into Private Limited Company is currently not possible in India, as both LLP Act, 2008 and Companies Act, 2013 are silent about the matter.
There are two ways of converting a One Person Company into a Private Limited Company as per the act. The conversion can be a voluntary one or by compulsion but cases a proper procedure is to be followed.
If an OPC fulfills any of the situations given below, then it must convert to a Private Limited Company.1. If the paid-up capital of the OPC exceeds Rs. 50 lakh.2. If the average turnover in any three consecutive financial years is more than Rs. 2 crores.
For more information about Company Registration in India, send us an email at info@enterslice.com. You can also call our customer support at +91 9069142028.
Recommended Post: Registered Office Requirement for Private Limited Company.
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