Advantages of Private Limited Company Registration in Chennai

November 25, 2020 Admin Private Limited Company

There are various Advantages of Private Limited Company Registration in Chennai. Private Limited Company is a specialized legal entity having limited liability and permanent existence which is now incorporated under the Companies Act, 2013. It is currently the leading business structure in India. A private limited company must have members from two to two hundred. Minimum capital is not required in a private limited company and Rs.5 lakhs is required in the case of a public limited company. At least one of the directors in the business must be an Indian resident. Foreign nationals are also allowed to be shareholders / directors of companies with foreign direct investment (FDI).

Procedure for pvt ltd company registration in chennai

1. Name your business: Private Limited Company registration in Chennai prioritizes decide on a name for your company. The business name should be unique and memorable. You must provide at least one (maximum 6) name (s) to the ROC. The availability of names is checked by the Registrar. Must have name and object. You cannot name “ABC Pvt. Ltd.” It will be rejected. Instead you should name it “ABC Software Solutions Pvt Ltd” or “ABC Travel and Tours Pvt Ltd”. You can check the availability of names directly here.

2. Register for e-filing at MCA Portal: This is the next step you need to take as a business owner. You must first register as a customer on the Ministry of Corporate Affairs (MCA) website.

Apply for Director Identification Number (DIN): All current or intended directors of the organization must obtain a Director Identification Number (DIN). You can download the form online and get it signed by the promoters.

4. Obtain Digital Signature Certificate (DSC): Private Limited Company registration in t nagar Chennai needs all documents submitted in electronic form require digital signature. This is to ensure the security and authenticity of the documents.

5. Register the DSC on the MCA website: The obtained DSC should be registered on the Ministry of Corporate Affairs (MCA) website.

6. Apply for your Company Name Approval: Private Limited Company registration in west mambalam Chennai insists that one needs to get permission from the Registrar of Companies for your company name. Name approval is obtained by filing EForm-1A. This form requires the digital signature of one of the promoters. Some of the details required in the form are as follows:

a. Authorized capital for the proposed company

B. The main objectives of the proposed organization

C. The position of the proposed company

d. Copy of Trademark Application

E. If there is a logo associated with the trademark, then the image of the logo

f. Balance sheet (if applicable) and income tax return for the last 2 years

g. If the Registrar of Companies approves the proposed name, a letter accepting the proposed name will be issued. If the name is rejected, the applicant must reapply for company name approval.

7. Create a Memorandum of Association: Private Limited Company registration in adayar Chennai states that this is the next step in establishing the Association Memorandum for which you intend to form the organization.

8. Create an Article of Association: This (AOA) can be easily prepared under the guidance of any lawyer or chartered accountant.

9. Certify, stamp and sign: After careful examination of the MOA and AOA, the Registrar of Companies must certify them.

10. Additional steps for setting up a Private Limited Company registration in velacherry Chennai: Some additional forms for incorporation of a private limited company should be submitted to the Registrar of the Ministry of Corporate Affairs and Secretaries. They are:

A. eForm-20, to be filled and it should be submitted by the Director or Company Secretary.

B. Statement to be submitted to the Registrar of Companies

C. Affidavit from each director stating that the company has not started its business with the Registrar of Companies

D. Board Resolution for Approval of Basic Expenditure, Appointment of First Auditors to the Registrar of Companies (Also attach their letter of consent).

Advantages of private limited company registration in Chennai

Easy transfer

Where the business is proposed to be sold, it is necessary to transfer the entire shareholder to the buyer and make an easy change in management and ownership. This saves promoters time and money. Saves a large amount of stamp duty.

Dual relationship

In the form of a company, it is possible for a company to enter into a valid and effective agreement with its shareholders / directors. It is also possible for an individual to be in control of a company and at the same time be in its job. Therefore, an individual can be a shareholder, director, lender and employee of the company at the same time.

For example:

He can be rewarded as a director.

As a shareholder he can get a dividend.

As a tenant he can get a lease rent.

As a lender he can borrow money and earn interest.

As a supplier he can supply goods from his / her family business.

Ability to borrow

When registration is done in Private Limited Company registration in omr Chennai a company gets better ways to borrow funds. It can issue debentures, which is safe and secure, and accept deposits from the public, etc. Banking and other financial institutions also prefer to provide large financial assistance to a company. Hence registration provides the ability to borrow.

Tax

Private Limited Company registration in Chennai insists that only merchants and partners pay income tax. Companies pay corporation tax on their taxable profits. There are a wide range of allowances and tax deductible costs against the company’s profits.

Collecting money from the public

Public limited companies can raise large amounts of capital from the general public through shares and public deposits. Private Limited Companies can raise capital only through private placement of shares and deposits.

Legal entity / status or identity

A private limited company is a legal entity that is established under this Act. It has its presence apart from its members and its directors. Private Limited Company registration in guindy Chennai take you more seriously than owner / partnership status.

Working as a private limited company often instils belief in the business for suppliers and customers and raises the credibility. Especially large companies prefer to deal with private limited companies rather than other forms of companies.It is easy to attract quality workforce and achieve strategic motivation of employees by using flexible and wide range management status.

Thus Private Limited Company registration in coimbatore is always there to accompany in the registration services. To know more about private limited company registration in chennai, click here.