1. Is It Compulsory To Register The Company?
Yes,The process of registration of company in India is compulsory and treated as one of the business structures. There are so many benefits of incorporating the business. The most important ones that you should be aware of:
· Protection of the personal assets
· Pay less amount of taxes
· Transferable ownership
· Easy to create retirement plans
· Separate the credit rating regardless of an owners personal score
· Durability is increased.
2. What Do Business Owner Needs To Do To Incorporate Business?
To form a company, it is mandatory to fill incorporation documents with the secretary of state or other state agency that handles business filings. Each state has its own forms, rules regulation and procedures for doing this. After you have filed incorporation papers, you will get a certificate or other document from the state confirming that your company exists.
3. Which Types Of Documents Are Required For The Company Formation?
The important documents required during the registration process varies as per the different states of India. But, there is a common information that the state follows include following things like:
· For obtaining DIN (Director identification number) they need details of atleast two directors of the company.
· DOB
· Occupation
· Photograph of the director
· photo identification proof
· Afterwards 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 document i.e. DIN Form, Identity Proof and Proof of Residence have to be attested by notary of the home country.
4. How Many People Are Required To Incorporate A Private Limited Company?
To incorporate a private limited company, atleast 2 people are required. A private limited company must have at least 2 Directors and maximum 15 directors. Minimum 2 shareholders and maximum of up to 200 share holders are allow in a private limited company.
5. How Long It Will Take To Incorporate A Company?
It takes about 5-20 days. The time taken for the registration will depend on submission of relevant documents by the client and speed of the Government Approvals. To ensure fast registration, choose a unique name for your Company and ensure that all the required documents prior to starting the registration process.
6. What Do Business Owner Needs To Do To Incorporate Business?
To form any corporation, it is mandatory to fill incorporation documents with the secretary of state or other state agency that handles business filings. Each state has its own forms , rules& regulation,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.
7. What Are The Requirements To Be A Director?
The director needs to be above 18 years and must be a natural person. There are no limitations of citizenship or residency. Hence, even NRI can be directors in an Indian Private Limited Company.
8. What Is Authorized Capital Fee?
It’s the amount of shares a company can issue to the shareholders. The companies have to pay fees to government for the issues of the shares in a company.
9. How Long Is The Registration Of The Company Valid?
After 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.
10. What Is The Capital Required To Start a Private Limited Company?
You can start a Private Limited Company with any amount of capital that you want. Though the fees must be paid to the Government of India for issuing minimum of shares worth Rs 1 Lac. This amount is treated to be an authorized capital fees during the registration of the company. No requirement to show the proof of capital invested during the registration .
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