Modi Government in line to easy incorporation and working has made many changes. The changes like relation in loan from directors, minimum capital requirement, fast track process for incorporation has helped a lot to easy incorporation your company.
The main highlights of incorporating Private Limited Company are:
- Improve Business Credibility– A business that can be located on the MCA Portal, makes it easy to authenticate the existence of the business, improving business credibility.
- Funding- Private Limited Company can issue shares and are thereby able to attract equity funding.
- Sense of Ownership- In a Private Limited company, shareholder contributes the amount and gets shares of the company which brings the sense of ownership.
- Acceptance of Foreign Payments/Investments- In a Private Limited company, any foreigner can become a shareholder and can easily route the money from a foreign country to India but in LLP there are many restrictions.
- Limit the Risk to Personal Assets- Where a business owner has “limited liability” protection, it means that only the assets of the business are at risk, and not the promoter’s personal assets such as personal bank accounts, cars and houses.
- Application for Name Availability- Form- INC-1
Purpose– checking of name availability for new incorporation of company.
- Application for Incorporation of Company- Form- INC-7
Purpose– To file application with ROC regarding incorporation of company supported by all relevant documents.
Mandatory attachments –
- Declaration by professionals
- Affidavit by all subscribers and directors
- Verification of signature & photo
- Proof of residence & identity
- Notice of situation or change of situation of registered office and verification- Form- INC-22
Purpose – Notice of registered office at time of incorporation and notice of change in registered office after that.
- Proof of registered office
- utility bills
- proof of permission to use (in case not owned)
- Particulars of appointment of directors and the key managerial personnel- Form- DIR-12
- Particulars of first directors
- Appointment of Directors and KMP
- Change in particulars relating to Directors and KMP
Mandatory Attachments: Consent letter & Appointment Letter