Let us start learning about the major facts about the company registration in India. There are many frequently asking questions about the company registration for many startup people in each city of our country. The rules and regulations for the selection of appropriate legal form and its registration process is guided by the expert in Corproots.
Six features of company registration in India
Are you a single founder for the company?
Private limited companies are the most commonly registering business forms in India. While discussing about the shareholders in a PVT LTD Company there should be minimum of 2 shareholders in a company. Single founders can add their father, mother or any other relative as the 2nd shareholder as per the rule.
Why most of the startup companies are PVT LTD registered?
Private limited companies are more in our country which helps the shareholders better stability. It can be easily described that people preferring PVT LTD Companies can raise their capital funding at any time. Employee stock options is flexible in such concerns for the effective flexibility in business. Banks can lend loan for the private limited companies if necessary at any time compared to the sole proprietorship based firms.
Do you know the company registration procedures?
- Obtain the Digital Signature Certificate (DSC) to sign online- It is availed within 2 days of time based on the submission of complete documents to our expert
- Get Director Identification Number (DIN) within one day of time
- Choose company name related to your business type should not be similar to the brand name
- When the above steps are completed then the process of drafting Memorandum of association (MOA) and Articles of association (AOA) is carried forward.
- Finally the company incorporation certificate is applied
What can be the maximum number of shareholders in a PVT LTD Company?
There can be minimum of 2 and maximum of 50 shareholders in a private limited company. Whereas the directors can be minimum of 2 and maximum of 15.
Investment in private limited companies and the regulatory requirements
Most of the PVT LTD companies in India do not need to invest any money initially rather than that machineries and other necessities. At the same time the regulatory requirements in this form of companies are lesser compared to public limited firms.