PVT LTD Company Formation
You can become a successful entrepreneur in India by starting a PVT LTD Company. Basic requirements of a Private Limited company include a minimum of two directors, minimum of two shareholders and minimum capital investment. By operating as a separate legal entity, a PVT LTD company formation protects the personal assets of its promoters and directors by way of limited liability. Meanwhile, a sole proprietorship or partnership firm has unlimited liability, and personally liable for any business debts/Loss. It is better to start your own company, instead of running a partnership, or a sole proprietorship, as many benefits are associated with it.
Many neglect the company registration part as they don’t have much information on the procedures involved in it. Corp Roots is able to guide you on company registration procedures without much teething troubles. Our services allows in registering a company and running it successfully in simple steps. Several steps are involved in the registration procedure, but we are able to provide registration services in an economical and effective way.
Who would choose PVT LTD Company?
PVT LTD Company formation is good for those people/or companies, who want to do business without putting personal assets in a high risk category. Those who are planning to do business in the country with a long term objective can register their business in the private limited business category and ensure stability, limited liability and great capital combination.
Benefits and key features
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- Reduces financial risk – By registering as a private company the personal finances of all the promoters are getting protection. They are not liable for the debts of the company, as they are only responsible for the value of the shares they paid as share capital.
- Improves the company’s image and prestige – A Private limited company label can make business more attractive to the public, clients, creditors, and suppliers.
- Shareholdings in the company – A Private Limited Company can be owned by stakeholders and companies.
- Perpetual succession – A limited company will exist forever regardless of promoters or directors’ death or transfer of the shares.
- Trade name Protection – A PVT LTD company name is protected after registration with MCA. No other company is legally permitted to register or run a business under the same name.
- Raising capital – The company can raise capital by selling its shares.
- Tax benefits.
Legal requirements
- All Private limited companies have to register with the Registrar of Companies in India (Ministry of Company Affairs)
- You can open a company in a residential address or corporate office address. For registered office address you should show rent agreement with latest receipts (in case of rented premise), house tax receipts, NOC from owner and electricity bill.
- A PVT LTD company must have at least two shareholders and two directors- The shareholders also can be directors.
- Articles of association should be filed with Registrar of companies – this is a set of rules, regulations and bylaws that a company should follow.
- A memorandum of association must be drafted; this summarizes the relationship between a private limited company and all of its shareholders.
- Annual accounts and tax returns must be filed with the registrar of companies
- Company profits are subject to income tax
- Private Limited companies are liable to pay sales tax.
- The Company’s statutory register should be maintained and any changes will have to be recorded.
- All details pertaining to the Private limited company and its members are filed with registrar of companies.
- Details of all members should be available for public.