Advatages of Private limited Company
1. Separate Legal Entity
A company is a legal entity and a juristic person established under the Act. Therefore a company form of organization has wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts.
2. Uninterrupted Existance
A company has 'perpetual succession', that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.
3. Borrowing Capacity
A company enjoys better avenues for borrowing of funds. It can issue debentures, secured as well as unsecured and can also accept deposits from the public, etc. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.
4. Easy Transferability
Shares of a company limited by shares are transferable by a shareholder to any other person. Filing and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares.
5. Owning Property
A company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern.
6. Limited Liability
Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a limited liability company the liability of the members in respect of the company's debts is limited.
Compliances after registration of Private Limited Company
1. Apply for Sales Tax / Service Tax Registration based on the nature of Business.
2. Filing Income Tax Return of Company on or Before 30th September every year
3. To maintain proper Books of Accounts
4. To Maintain Minutes Book and all statutory registers
5. To comply with SS-1 and SS-2
6. Get your account books Audited Every Year
7. Filing of form MGT-7,AOC-4 and ADT-1 every Year
8. Appintment of Auditor - No intimation required to be given to ROC in case of First Auditors. Form ADT 1 to be filed within 15 days of 1st AGM of the Company
Process to Incorporate Company with Foreign Nationals
We need following documents of Foreign National
1. Copy of Passport ( as Proof of Identity)
2. Address proof ( Telephone bill, Electricity bill or Bank statement)
3. Five Photographs
All the documents should be Notarized and sent to us in Originals
Where subscriber to the memorandum is a foreign national residing outside India- Subscriber Sheet should be Attested by
1. In a country in any part of the Commonwealth, his signatures and address on the memorandum and articles of association and proof of identity shall be notarized by a Notary (Public) in that part of the Commonwealth.
2. In a country which is a party to the Hague Apostille Convention, 1961, his signatures and address on the memorandum and articles of association and proof of identity shall be notarized before the Notary (Public) of the country of his origin and be duly apostillised in accordance with the said Hague Convention.
3. In a country outside the Commonwealth and which is not a party to the Hague Apostille Convention, 1961, his signatures and address on the memorandum and articles of association and proof of identity, shall be attested by Indian Embasy in that country;
4. If Foreign subscriber has Visited in India and intended to incorporate a company, in such case the incorporation shall be allowed if, he/she is having a valid Business Visa, in that case subscriber sheet is to be signed by Indian Practicing Professional.
Attention Required : Save your Money
We have come across Incidents where people get COD / VPP couriers after incorporation of their company / LLP.
Once Company is incorporated, data is freely available on MCA website and is used by many fraudsters to make money.
They take printout of free available data and send to registered address of company via VPP / COD and ask you to pay some money to receive the courier.
Please do not accept this Courier, MCA / ROC do not send these Paid Couriers and advise you not to accept them.
Your all company registration documents shall be provided by MyCorporation without any extra cost.