Private Limited Company Registration in Gujarat
Doing business in a company format grabs ample of opportunities and leave an everlasting impression in the market.
Incorporate your company now with our experts advice
Meaning of Private Limited company
The private Limited Company is one of the types of companies where minimum or lesser number of compliances is required. It is the most convenient way to conduct the business in a legal way. The Private Limited company requires Minimum 2 directors at the time of incorporation. The minimum share capital of the company can be decided by the directors on their own. There is no threshold limit either minimum or maximum for Private Limited Company Registration in Gujarat.
Number of Directors
There must be at least 2 directors at the time of Private Limited Company registration in Gujarat. One of the directors must be resident of India.
Share Capital for private limited company
There is no minimum or maximum threshold limit prescribed for private limited company registration in gujarat. The directors and promoters can decide on their own.
What are the featured characteristics of company
Separate Legal Entity:
A company is a separate legal entity from its members who constitute it. It can hold, purchase and sell properties and enter into contracts in its own name. It is an artificial legal person who can sue aid be sued. Companies are owned by shareholders and they elect the Board of Directors, who run the company. The board in turn selects the management. Thus the shareholders exercise only indirect control over the affairs of the company. The separation of ownership from the management some-times results in a conflict of interests between owners and management. The best the shareholders can do is to change some of the directors through vote in the annual general meeting subsequent to any such conflict.
Limited Liability:
The liability of the shareholders of a company is limited to the nominal value of the shares held by them. In the event of liquidation the maximum loss of a shareholder is equal to the nominal value of the shares held by him. The creditors have no claim on the personal assets of the shareholders in the event of liquidation.
Transferability of Shares:
An Artificial Judicial Person created by Law:
A company is called an artificial person because it does not take birth like a natural person but it comes into existence through the law. The company possess only those properties which are conferred upon it by its Memorandum of Association (Charter)
Continuous Existence/perpetual succession:
The companies generally have a continuous existence irrespective of changes in ownership. In the cases of sole proprietorship and partnership, change in ownership means the dissolution of the original business and formation of a new business.
Common Seal:
Being an artificial person, a company can act through natural persons only. The acts of a company are authorized by the “common seal”. The “common seal” is the official signature of the company. A document not bearing the common seal is not binding on the company.
What are the tempting reasons to form a company?
- Tax Advantages – Company often gain tax advantages, such as the deductibility of health insurance premiums paid on behalf of an owner-employee; savings on self-employment taxes, as corporate income is not subject to Social Security, Workers Compensation and Medicare taxes; and the deductibility of other expenses such as life insurance. Recently, the government has announced tax advantage scheme for newly incorporated company subject to certain terms and conditions where company can be taxed only at 15 %. Thus, government is now encouraging company incorporation by giving huge tax benefits and thus making the strong economy.
- Easy fund raising – by incorporating company, Fund can be raised more easily through the sale of stock. Additionally, many banks, when providing a small business loan, want the borrower to be an incorporated business. it will become much easier for borrower to avail loans facility from bank if they do business under the formation of company.
- Unlimited Life – A company is a separate legal entity which is different from its owners. A company’s life is not dependent upon its owners. A company possesses the feature of unlimited life, meaning if an owner dies or wishes to sell his or her interest, the company will continue to exist and do business. A company can only be dissolved by officially striking it off.
- Creation of goodwill – Incorporating company may help a new business establish credibility with potential customers, employees, vendors and partners because the companies act is formed in such a way that there has to be proper management who runs the company considering all the legal compliances.
The company incorporation procedure
Check the name availability:
The first step in the incorporation of any company is to choose an appropriate name. A company is identified through the name it registers. The name of the company is stated in the memorandum of association of the company. The company’s name must end with ‘Private Limited’ if it’s a Private company and ‘Limited’ if it’s a public company . The name of the company must be in accordance with the companies name availability rules.
List of documents for registration of company:
-DIN (Director Identification Number) of all directors.
-PAN of all individual that are proposed to be appointed as a director in a company
-Identity proofs (Driving License/passport, voter’s id) and addresses proofs (Adhar card/Light bill/bank statement) of all directors.
-Passport sized photograph of all directors.
-Address proof of registered office of company.
-Digital Signature of all the directors so as to submit the incorporation form on MCA portal.
Incorporation process:
- Determine the amount of share capital with which company to be incorporated. The incorporation fees of company and stamp duty payable is based on the amount of share capital with which company is to be incorporated. The higher the share capital, the higher the incorporation fees. The amount of shares subscribed by directors or shareholders must be brought in and deposited into the bank account within 6 months from the date of incorporation. Thus it becomes paramount to decide the share capital with which company is to be incorporated.
- File the company incorporation forms on MCA portal. This forms called SPICE+ 32 (earlier known as Spice 32), SPICE+ 33 (earlier known as Spice 33 MOA), SPICE+ 34 (earlier known as Spice 34 AOA). These are the incorporation forms of company which needs to be filed online and needs to be signed by all directors and certified by CS or CA.
- This forms can be filled by logging on MCA portal only. Thus, for anyone who wants to file the incorporation forms on MCA portal, must create his/her login id on MCA portal. Where you can fill the form, save it for your convenience and attach all supporting documents as asked in the forms. You must pay prescribed fees after successfully uploading of these forms.
- Once you pay the fees, acknowledgement will be generated. This acknowledgement contains the SRN (service request number), which is helpful for tracking of this form’s status
- On successful verification of forms filed and documents attached, you will be issued an incorporation certificate of company.
Answers to all your queries is here
For selection of a name of proposed company, one needs to make sure that there is no company or llp exist with similar name in the same line of business. Another must requirement is to check whether the name is registered as a trademark or not. To know this guidelines in details one must see the name availability guidelines issued by MCA.
If all the documents are in order, it will take no longer than 15 days. However, this is dependent on the workload of the registrar. Registrar of company usually work on first come first serve basis.
The full form of AOA is Articles of Association and MOA is Memorandum of Association. These documents contain the rules, vision and mission of the organization, define the object of company and the roles and responsibilities of shareholders, directors and every other parties to the company.
Yes, a private limited company must hire an auditor, no matter what its turnover. In fact, an auditor must be appointed within 30 days of incorporation.
Yes, one can register the company at their residential address. One requires to submit the utility bill copy of the same
NO, there is no need to send physical copies of documents for incorporation of a company. The whole process of incorporation is online.
NO, so long as the annual compliances are met, the private limited company will continue to exist. If you do not comply with the requirements, it will go dormant, until it is struck off the register altogether. No resignation of all directors affect the existence of company. Company is a seperate legal entity with a perpetual succession.
The minimum number of director required to form a private limited company is 2.
There is no minimum capital required for starting a private limited company
Any individual/organization can become a member of a private limited company including NRI/foreigners. Nonetheless, the individual must be 18+ above in terms of age and should hold a valid PAN card.
