Know about company registration ?
1. Is It Compulsory To Register The Company?
The process of company registration in India is mandatory and treated as one of the business structures. There are plenty of benefits of incorporating the business. Below mentioned are the most important ones that you should be aware of:
Protection of personal assets
Pay less taxes
Easier to create retirement plans
Separate credit rating regardless of an owners personal score
2.What Do Business Owner Needs To Do To Incorporate Business?
To form a corporation, it requires filing incorporation documents with the secretary of state or other state agency that handles business filings. Each state has its own forms, rules and procedures for doing this. After you have filed incorporation papers, you will receive a certificate or other document from the state confirming that your corporation exists.
3.Which Types Of Documents Are Required For The Company Formation?
The documents required during the registration process varies greatly as per the different states of India. However, there is a common information that the state follows include following things like:
Details of at least 2 Directors/Promoters of the company for obtaining DIN (Director identification number)
Date of birth/nationality
Photograph of the proposed director
Copy of passport or similar identification which will be used as photo identification
Thereafter a provisional DIN would be obtained from the Ministry of Company Affairs and a copy would be send for obtaining signature of the applicant. In case of foreign residents the documents i.e. DIN Form, Proof of Identity and Proof of Residence have to be attested by notary of the home country.
Proposed names of the company in order of preference.
Main objects of the proposed company.
4. How Many People Are Required To Incorporate A Private Limited Company?
To incorporate a private limited company, minimum 2 people are required. A private limited company must have at least 2 Directors an have up to maximum of 15 directors. Minimum 2 shareholders and maximum of up to 200 share holders are allowed in a private limited company.
5. What Are The Requirements To Be A Director?
The director needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or it’s residency. Hence, even a foreign nationals can be directors in an Indian Private Limited Company.
6. What Is The Capital Required To Start a Private Limited Company?
You can start a Private Limited Company with any amount of capital. Though the fees must be paid to the Government of India for issuing a minimum of shares worth INR. 1 Lac. This amount is treated as an authorized capital fees during the registration of the company. There is no requirement to show the proof of capital invested during the registration process.
7. What Is Authorized Capital Fee?
Authorized capital of the company is the amount of shares a company can issue to the shareholders. The companies have to pay the government an authorized capital fee to issues the shares in a company.
8. How Long It Will Take To Incorporate A Company?
Let’s Comply can incorporate a Private Limited Company for in 14-20 days. The time taken for registration will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy registration, please choose a unique name for your Company and ensure you have all the required documents prior to starting the registration process.
9. How Long Is The Registration Of The Company Valid?
Once the Company is incorporated, it will be active and in-existence as long as the annual compliance are met with regularly. In case, annual compliance are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of upto 20 years.