Advantages of Company Registration

Posted by Estellaconsultancy on June 25th, 2019

ADVANTAGES OF PRIVATE COMPANY REGISTRATION

•        LEGAL STATUS

The Private company has its separate legal entity which distinct its shareholders and company.

•        PRIVATE LIMITED STATUS

The Private Limited word mention at the end of the company name.

•        PERPETUAL SUCCESSION

There is no effect on the company existence after the decease of its existing shareholder.

•        LIMITED LIABILITY

The Liability of Shareholders is Limited to the extent of Subscribing share capital.

•        BUSINESS CREDIBILITY /FUNDRAISING

The Company can raise funds easily in comparison to other forms of business and having high business credibility.

•        BRAND VALUE

The Company is registered under companies act 2013 which is passed by the Government of India or its central act. The company is directly registered with the Central Government (Ministry of Corporate Affairs).

•        EXPANSION OF BUSINESS

The company can expand business by inviting shareholders up to 200 and raised funds by inviting various venture capital or People by issuing equity shares.

•        INVITE FDI (FOREIGN DIRECT INVESTMENT)

The company is the best form to invite FDI from abroad and it's a very good vehicle to invite foreign national (foreign capital) to become shareholders of the company by issuing equity share capital.

DEFINITION OF PRIVATE COMPANY

• The private limited company is governed by section 2 (68) of Companies act 2013 and relevant rules.
• It is a form of Business in which a small group of people manages this type of entity privately without any Public interference.
• To form a private company the requirement of a minimum of 2 Directors and 2 Shareholders/Subscribers.
• As on date the incorporation of a Private company is hassle-free and Having a very low cost of Incorporation. 

OTHER BUSINESS REGISTRATION REQUIRED TO THE COMPANY

•        FSSAI REGISTRATION
•        GST REGISTRATION
•        DIGITAL SIGNATURE REGISTRATION
•        TRADEMARK REGISTRATION
•        PROFESSIONAL TAX REGISTRATION
•        ESI REGISTRATION
•        PF REGISTRATION
•        CONVERSION OF BUSINESS
•        MSME/SSI REGISTRATION
•        SHOP ACT REGISTRATION
•        RERA REGISTRATION (IF COMPANY INVOLVE IN REAL ESTATE SECTOR)

DOCUMENTS FOR COMPANY REGISTRATION

DOCUMENTS OF DIRECTORS & MEMBERS

•        Passport Size Photo.
•        Identity Proof (Driving License or Passport or Voter ID).​
•        Address Proof (Mobile Bill or Electricity bill or Bank Statement).
•        PAN Card (Mandatory).
•        Passport is mandatory for Foreign National or Non-Resident India (NRI).
•        Aadhar Card.
•        Mobile No.
•        Email Id.
•        Qualification.
•        Occupation​. 

DOCUMENTS OF COMPANY

•        Name of the Company.
•        Business Objective (A company registration is done for only one objective).
•        Authorized Share Capital.
•        Paid Up Capital.
•        Registered Office of the Company.
•        Property Owned (Sale Deed or Electricity Bill) OR Property Rented ( Rent Agreement)​​​​.

MINIMUM REQUIREMENTS FOR COMPANY REGISTRATION

•   Minimum 2 Members.
•   Minimum 2 Directors.
•   The authorised capital of Minimum 1 Lakh.
•   Minimum 1 Director is Resident of India.
•   All Directors have a DIN (Director Identification Number).
•   The company have a Business Objective.

TYPES OF COMPANY REGISTRATION 

•   PRIVATE COMPANY REGISTRATION
•   LLP REGISTRATION
•   OPC REGISTRATION
•   NGO/SECTION 8 COMPANY REGISTRATION
•   PROJECT/LIAISON OFFICE REGISTRATION
•   PUBLIC COMPANY REGISTRATION
•   NIDHI COMPANY REGISTRATION
•   PRODUCER COMPANY REGISTRATION

•   OPC, Proprietorship Firm is best for small business because they have a very low cost of compliance in comparison to other forms of Business but OPC has Limited liability and separate legal status.
•   A private limited company is best for a startup which has an expanding plan don't want to raise fund from General public through public offer or prospectus or Stock exchange and they also want to manage their company privately without any Public Interference.
•   LLP is the business form having features of a private company as well as a partnership firm and it's used generally by professional (CS, CA, CWA and Doctors etc) and it's easy to dissolve
•   Public Limited Company is used by those businesses who want to raise Fund from the General public through public offer or prospectus or Stock exchange and want to business by engaging a large group of people.