Incorporation of Private Limited Company

Private Limited Company Registration
Advantages
 Limited Liability Protection to Director’s personal assets
 Better image & credibility
 Easy to raise funds and loans
 Best Mode for Startups
 Favorite Business structure for Investors

Minimum Requirements
 Minimum Two Directors
 Minimum Two Members
 No Minimum Capital Required
 Maximum Fifteen Directors
 One Director shall be Indian resident

Introduction
A Private Limited Company is the most relevant and caught on type of business structure in India, suitable for small and medium scale businesses. However, the total number of members in Private Limited companies cannot exceed the maximum limit of 200.

Once the registration of such companies is done, a separate legal existence is attained by a business organization which means a registration gives a business – an individual legal identity independent of the company’s directors and shareholders. This implies the continuation of the company’s existence even after the death of any member of the company. This makes the registration of a Private Limited company as an important job. For Private Limited company registration, one must go to professionals or visit MCA online portal.

Companies Act, 2013 lays down the law for Private Limited companies and the Ministry of Corporate Affairs is the regulatory body for the registration of these companies.

Reasons to Register a Private Limited Company
Easy Transferability
Limited Liability
Perpetual succession
Improves credibility

Requirements for Incorporation of a Private Limited Company
Companies Act, 2013 has listed the following requirements for the incorporation of a Pvt. Ltd. Company
Passport size photo
DIN (Director identification no.)if any
DSC (Digital signature certificate) of all directors
Minimum 2 Directors
Note– One Director must be Indian Resident

PAN Card

Self-attested PAN Card of Members and Directors.

Identity Proof of Directors

Self-attested ID proof of Members and Directors- (Anyone out of the following -Valid Passport/Voter ID/Aadhar Card/Valid Driving License)

Address Proof

Self attested Address proof of the Members and Directors (Any one out of the following – Bank Statement/ Electricity Bill/ Telephone Bill/ Mobile Bill which and it should be not older than 2 months

Business Address Proof (Rented/Leased)

If proposed Registered Office is taken on Lease – NOC from Landlord/Lease Agreement/Utility Bill (Either Electricity Bill or Mobile Bill or Telephone Bill) (Should Not be Older than 2 Months)

Business Address Proof(Owned

If the proposed Registered Office is not taken on Lease – NOC from the Owner of Property/Property Papers (Title Deed)/Utility Bill (Either Electricity Bill or Mobile Bill or Telephone Bill) (Should Not be Older than 2 Months)

Basic Information Required
Authorized and Paid-up Share Capital of the Proposed Company and Number of Shares Subscribed by Members.

Explanation: A Company can be commenced with any amount of capital. There is no need for a minimum capital amount.

Place of Birth and Duration of Stay of Members and Directors at Present Residential Address.

Occupation of Members and Directors.

Proposed Object/Business of the Proposed Company.

Educational Qualification of Members and Directors.

Email IDs and Contact Number of Members and Directors.

LIMITED LIABILITY PARTNERSHIP (LLP)
Meaning of LLP
A limited liability partnership (LLP) is a type of partnership that allows a few or all partners (contingent upon the jurisdiction) to have certain defined liabilities. This signifies the liability of each partner towards the misconduct or negligence of another partner.

LLP is one of the easiest types of businesses to incorporate & manage and it integrates the advantages of a Partnership Firm and a Company.

Key Takeaways
Limited liability partnerships (LLPs) form a partnership design in which each partner has a limited liability proportional to the investment they have made in the business.

LLP disperse the risk among the partners, leverage the individual abilities & competencies and form division of labor pattern

LLP is a common trend among professional businesses such as legal firms, wealth managers and Accounting consultancies.

Origin of concept
The concept of a limited liability partnership was introduced in India by the Limited Liability Partnership Act 2008.

The main reason behind the introduction of Limited Liability Partnership is to furnish such a form of business entity that is less complex in nature, easy to maintain, and pertains limited liability to its owners. Besides, an LLP offers non-rigidity of partnership and restricted liability of a company.

Suitability and Popularity
LLPs are most-popular among the Professionals and Closely held businesses that are family-owned. It is not suitable for those kinds of businesses who have plans to raise equity funds from Venture Capitalist, Angel Investors or Private Equity Funds.

Features of LLP Company
It has a separate legal entity like companies
The liability of each partner is limited to the contribution made by them.
The cost of forming and running LLP is low compared to companies.
Less compliance and regulations
No requirement of minimum capital contribution
Compulsory Audit is required only when the Contribution exceeds 25 lakhs or the Annual Turnover exceeds 40 Lakhs.

Basic Requirements to Incorporate an LLP
Minimum 2 Designated Partners
Digital Signature of one Designated Partners
DPIN of all the Partners
The Contribution (tangible or intangible property or other benefits to the Limited Liability Partnership)
At least one designated partner is Indian Resident


ROC FILING

Documents Required for ROC Filing
Each company has to attach a few important documents during filling with the ROC which are mentioned below:

Adopted Financial Statements of the Company in the AGM comprising of the Balance Sheet, Profit and Loss Account and the Cash Flow Statement(if applicable) along with the notes in e-form AoC-4.

Board Report along with its annexure in e-form AoC-4
List of Members as on the end of the Financial Year in e-form MGT 7.