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Limited Liability Protection to Directors personal assets
Many times startups need to borrow money and take things on credit. In case of normal Partnerships, Partners personal savings and property would be at risk incase business is not able to repay its loans. In a private limited company, only investment in business is lost, personal assets of the directors are safe.
Better image and credibility in Market
Private limited company is popular and well known business structure. Corporate Customers, Vendors and Govt. Agencies prefer to deal with Private Limited Company instead of proprietorship or normal partnerships.
Easy to raise funds and loans
Pvt. Ltd. company enjoys wide options to raise funds through bank loans, Angel Investors, Venture Capitalists, in comparison to LLPs and OPCs.
Favorite Business structure for Investors
Investors love to invest in Private Limited companies as it is well structured and less strings attached. Most important it is very easy to exit from a private limited company.
Easy to attract Employees
For startups putting together a team and keeping them for long time is a challenge, due to confidence attached to private limited structure, it is easy to hire people as well as motivate them with corporate designations and stock options.
Easy to Sell
Private Ltd. is easy to sell, very less documentation and cost is involved in selling a Pvt. Ltd. company.
Minimum 2 Shareholders
One of the Directors must be Indian Resident
DSC (Digital Signature Certificate) for 2 Promoters & 1 witness
Minimum 2 Directors
Minimum Authorised Share Capital 100,000 (INR One Lac)
The directors and shareholders can be same person
DIN (Director Identification Number) for all Directors
DIN for 2 Directors
MOA + AOA
Customized Incorporation Master File
Bank Account Opening Document Support
Digital Signature Token for 2 Promoters & 1 witness
Company PAN Card
Domain Name + Hosting + 10 email ids for 1 yr
Company Name Approval
New Incorporation Kit
Company TAN/TDS Number
Or Online Accounting software
Years of startup centric
at your service
Startups served across India
Years of startup centric legal expertise
Team members at your service
Registrations done every month
Mr. Bikash GarabadauFounder, Cosmo Trade
There was a little bit of anxiety and doubt when I contacted them as I was from one side of the country and they were from other side and I was new to online filing and documentation process. But the service I got from them was marvelous. These guys are so professional, that I never felt to be new to them. The execution of papers, documentation and processing was first class. They finished the assignment before committed time and pricing is absolutely affordable and value for money.
You need to arrange very simple documents of directors like photograph, Pan card and one address proof. For more details, please fill the above details and .
No, commercial office space is not required. You can show your own residential or rented home address as the registered office address of the Company. This office address can be changed at any time after incorporation of the company. Once your startup is set up, stable and ready to move on to a nice corporate space you can change the registered office address by informing to the ROC office.
ROC is a Government office with whom companies get registered. Every State has one ROC office except Maharashtra and Tamilnadu where there are two ROC offices. In Maharashtra companies are registered with Mumbai & Pune ROC. In Tamilnadu companies are incorporated at Chennai and Coimbatore ROCs. In all other States like Delhi there is only one ROC office, like at Bangalore, Hyderabad and so on.
No. Startupwala provides complete online Company Incorporation process. All legal documentation with ROC and visits are done by Startupwala.
No. Once the company is formed, it will be valid till it is officially closed down by the owners. No renewal or fees is required. However, every year companies have to file very basic returns with ROC office.
Director Identification Number (DIN) is a unique identification number required for a person to become a director of a company. DIN is issued by ROC office (Ministry of Corporate Affairs)
It is similar to a PAN Card number.DIN is to be mentioned in documents while appointing a person as a director of a company.
A digital signature is electronic signature, which is in the form of codes. It is used for signing the electronic forms, filed with ROC for incorporation of Company. Digital Signature cannot be used in physical documents.
Company name is very important part in registration of company. The company name is divided into 3 Parts:
1) Keyword (brand name like TATA or Flipkart)
2) Activity word(i.e. showing nature of business like Software)
3) Business Type word (i.e. Pvt. Ltd. or LLP). For Incorporation of company, the suggested name should not match with existing companies or trademark.
MOA means Memorandum of Association and AOA means Articles of Association. These are the byelaws or rules based on which important matters like main business of the company or meetings is decided. These are standard legal documents prepared by Company Secretaries during registration of the Company.
Yes, company office address can be changed anytime after incorporation.
Capital means investment made by shareholders into the company. Authorised capital is an amount up to which company can issue shares. This capital is mentioned during incorporation of the company based on which ROC registration fees and stamp duty is paid. Paid up capital is an actual investment which goes from shareholders into company bank account, against which share certificate is issue by the company.
No. After company is registered, it need to open a company bank account and then anytime within two months of incorporation, capital can be deposited into Company bank account.
This is not true, a Private limited company is one of the mode of doing business, which means it can be started from scratch. For that matter even after incorporating a private limited there is no obligation that the company must have sales or turnover.
There is no automatic applicability. Provident Fund (PF), GST law applicability is same for all types of businesses like sole proprietorship, partnership firms and companies. These laws are applicable only after crossing certain threshold limits.