Do you have the urge to start a new private limited company? Then the first step that you should is to register it. In these days, the private limited companies are the most common legal entities in India. The registration of the private limited companies comes under the Companies Act 2013 & Companies Incorporation Rules of 2014. If you want to register your first agency or organization, there should be two shareholders and two directors. One person can be both the shareholder & director. These types of organizations offer various type of benefits to the employees. There are certain third party companies that help in the registration process.
There are several reasons why you will register the private company that you have-
- The company registration is required to have a separate legal entity. After the registration, the company can enjoy legal capacities like the opening of the bank account, taking on the equity, obtaining the licenses and hiring the employees for the benefit of the business. The directors of the company have no personal liabilities with the debts of the company.
- Almost all the private limited companies do have the perpetual succession. This means, there is no interference of the third party in the management of the business. As the company is having the separate legal entity, it remains unaffected by the death of one member. The company continues to be in existence as long as the other member wishes to.
- Each of the private companies that have the registration does have the borrowing capacity. They can raise the equity funds in India. These companies can also issue the debentures, equity shares, and preference shares while having the permission from the RBI.
- Some of the other benefits of having the company registration are that they have the owning property rights and have easy transferability.
There are several documents that are required for company registration. If you want to register your firm, you should have the PAN card, address proof like the passport, Aadhaar card, driver’s license or the electricity bill. You should also have the digital signature when applying for the registration.