How to start a Private Limited Company in Chennai?
How to start a private limited company in chennai? A private limited company is an attractive business model because it is a company with a payout share capital of at least 1 lakh. For a merger, the company needs at least 2 directors. However, the shares of the company are privately owned and cannot be traded publicly. If the company is in financial difficulties for any reason, the personal assets of the members will not be used to pay the debts of the members as the liability of the individual is limited. E.g. If a private limited company registration takes out any loan and is unable to repay, the members will be liable to pay only the value of the unpaid share, which is how much they have on their own share. That is, if you do not have a balance to pay for the amount of shares you own, you will not be paid for any debt owed by the company even if the / loan / credit amount is not paid.
Private Limited Company Features
The private limited company registration in Chennai has the features:
Treatment of shares
These shares are privately owned by close groups. Most people who own shares in a private company are relatives, friends, angel investors or employees of the founder.
Although most private companies are run as small businesses, some large companies continue to be private companies even though they cannot trade shares openly. For example, Google India is a private limited company.
If a private limited company registration in Chennai wants to increase its funds, it can list its shareholders or its debentures or even attract equity funds that other types of businesses are unable to do.
A pvt ltd company registration in Chennai can be elected as a public company by issuing shares to the public. This is called Initial Public Offering. Once a company is public, stocks are traded on the stock market.
For example, ICICI Prudential Life Insurance launched its private structure in March 2016. The insurance company raised Rs 6057 crore. It became the second largest IPO in the country and the first IPO of an Indian company.
Documents required for the pvt ltd company registration in Chennai
The following are the documents required for the private limited company registration in Chennai t-nagar
Proof of identity
The following documents are acceptable with the MCA.
Scanned copy of PAN Card
Legal eligibility to drive a vehicle
For private limited company registration in Chennai adayar Voter ID is required
Proof of address
Latest Bank Statement
Utility bill (not older than 2 months)
Registered Office Proof
There is no objection certificate from the utility bill owner
For private limited company registration in Chennai velacherry Lease Agreement (Notarized) is required
Home tax receipt if you own property
Photo of the applicant
Latest passport size photograph of all applicants / directors
The process of merging a private limited company
To promote quick registration timelines, the Ministry of Corporate Affairs (MCA) has launched a fast-tracking online company registration process.
Step 1: Company Name Search
Prior to merging a company, the founders of a private limited company recommend that you search for the company name, as RUN 2 can only be filed up to 2 sub submissions and you will be charged Rs.1000 again. You can use the company name search tool for free and provide insight into whether your company name is available or not.
Step 2: Obtain DSC (Digital Signature Certificate)
Members who are part of the organization must have a DSC. DSC is mandatory for the first shareholder when signing the MOA and AOA of the company. In addition, the proposed director is required to obtain a DIN, for which the DSC is mandatory.
Step 3: Obtaining a DIN (Director Identification Number)
The DN numbers of the proposed directors should be communicated to the Ministry in merged forms. Therefore, DIN is mandatory
Step 4: Name the company through RUN Web service
To reserve a new company name or change an existing company name, a simple online service called RUN (Reserve Unique Name) is used.
Here are some guidelines that MCA follows when granting a company name:
Unique and original. You can check availability using Company Name Search
Easy to remember, pronounce and spell
Simple and short
Should not be on par with other companies or businesses
The application for the company name is processed by the Central Registration Center (CRC). The CRC conducts a thorough inspection and rejects its approval or name.
Step 5: Draft MOA, AOA
Memorandum of Association and Article of Association are the documents required to include any organization. These two documents define the internal and external relations of the company with its shareholders. We also involve in services like company registration in bangalore.
MOA: Defines objectives, capital, registered office, etc.
AOA: Defines the rules and regulations governing and managing the organization.
Both of these documents are prepared by experts and must be submitted along with the subscriber’s sheet, which includes all the founding members’ DSCs.
Step 6: Apply for incorporation
After preparing the required documents, the following form should be filed to join the company.
SPICe-32: Application for Company Merger
E-MOA and e-AOA along with the signed subscriber sheet
Affidavit and statement of INC – 9 first subscribers and directors of the company
Proof of office address: Lease deed / transport / lease agreement along with rent receipts
Registered office utility bills (not older than two months)
Form DIR – 2 (Consent of Directors)
Form INC-22: Registered Office Address Details (Proof of address may be required later if not filed with SPICe Form)
Upon completion of all procedures for company registration, a Certificate of Incorporation will be issued to the company.
Advantages of the pvt ltd company
There are many advantages of pvt ltd company registration in Chennai. They are:
There is no minimum capital
A minimum capital is not required to set up a private limited company. A private limited company is just Rs. 10,000 total authorized share capital.
Separate the Legal Entity
A private limited company registration in coimbatore is a separate legal entity in court, i.e. the assets and liabilities of the business are not equal to the assets and liabilities of the directors. Both are calculated differently. A private limited company separates management and ownership and, therefore, managers are responsible for the success of the company and are also responsible for the loss of the company.