It allows a significant degree of separation between operations and ownership. It gives investors a choice of exiting the company without any hassle by just selling the shares without being liable for company affairs.
If a business is planning to go global, then the Private Limited Company is the only form which allows 100% Foreign Direct Investment, without any prior government approval.
To set up a Private Limited Company, one needs to:
MOA is a document which contains the objective and power of the company and defines the relationship of the shareholders with the company.
It must be drafted at the time of incorporation and must contain six clauses revealing the company name, registered company address, its limited liabilities, share capital, company objects, and association of the shareholders and other stakeholders with the company. Articles of Association (AOA)
AOA are the by-laws of the company which specifies the regulations for a company’s operation. It defines the roles and duties of the directors and other officers of the company. Information such as the total number of members, share capital, rules for a meeting of the company, voting power of members must be included in the AOA.
The company may alter it by passing the resolution at a general body meeting of shareholders. Also, AOA may or may not be registered.
Spice E-Form INC-32 along with link Form Spice MOA (INC-33) and Spice AOA (INC-34). is filed for the incorporation of the company. Spice E-Form INC- 32 is a simplified way to get Director Identification Number (DIN), Name Approval and Incorporation process. It’s a fast track mode to get the company incorporated in the expedited manner. After filing the same Certificate of Incorporation has been issued by MCA within 2 to 3 days.
Brief about Spice Form INC-32 (Replaced Form INC-29)
Spice means Simplified Proforma for Incorporating Company Electronically. MCA has facilitated the process of incorporation by introducing SPICE E-Form INC-32 with effect from 01/11/2016. It is a simplified process of incorporating a company. This process provides the same facilities as earlier in E Form INC-29 but the only difference between the two is introducing the filing of Memorandum and Articles electronically in Spice MOA and Spice AOA. Now, Spice E Form INC-32 is filed along with link form Spice MOA (INC-33) and Spice AOA (INC-34). After filing such form, Certificate of Incorporation has been issued by MCA within 2 to 3 days. In such process Aadhaar Card is mandatory for obtaining DIN of Director. This process has been introduced for saving lot of time and for ease of business.
Documents Required For Registering A Private Limited Company
- PAN Card
- ID Proof (Aadhar card/ Voter ID/ Driving license)
- Address Proof in the name of director (Any utility bill i.e., mobile bill/water bill/ electricity bill, or bank statement which should not be older than
- 4 Passport Size Photographs.
- Address proof of Registered office
- Any utility Bill (i.e., mobile bill/water bill/ electricity bill) of the registered office
WHY PRIVATE LIMITED COMPANY?
A Private Limited Company can be incorporated with minimum 2 directors by filing Spice E Form INC-32 along with link form Spice MOA (INC-33) and Spice AOA (INC-34).. Once the documents get verified, certificate of incorporation has been issued by MCA within 2 to 3 days.
The biggest advantage of a Private Limited Company is that its identity is distinct from that of its members. A company is a separate person having its own rights & Obligations.
In case of death of the owner or transfer of shares, your business won’t get affected. There will be no effect on firm’s continuance.
The greatest benefit of Private Limited Company is limited liability. If any liability arise then its member is not personally affected; members are only liable for unpaid shares held by them and not more than that. Stakeholders are not liable for corporate debts and liabilities
A Private Limited Company is required to perform lesser legal formalities as compared to a Public Limited Company. It enjoys special exemptions and privileges under the company law. Therefore, in Private Limited Company, less number of compliance is required.
A Private Limited Company is not required to publish its accounts or file several documents. Therefore, it is in a better position than a public company to maintain business secrets.
Flexibility to raise investments or loans from NRIs and Foreigners. Easy to raise investments and corporate loans.
Private Limited Company enjoys enhanced transparency thus able to win the trust of general public.
FREQUENTLY ASKED QUESTION
Digital Signature Certificate(DSC) AND DIN (Director Identification Number) is required for the proposed Directors of the Private Limited Company. It can be feasibly procured for the proposed Directors within 1 to 2 days.
Select a company name after referring to the MCA Name and Trademark database. We will prepare the documents as per your suggested name and get your signature on all documents required to be signed for submission to the Ministry of Corporate Affairs.
All required documents need to be submitted with Spice E Form INC-32 alongwith link Form Spice MOA (INC-33) and Spice AOA (INC-34). Once the name is accepted and documents get verified, MCA will issue Certificate of incorporation within 2 to 3 days