Private Limited Company Registration in Ahmedabad

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Private Limited Company Registration in Ahmedabad

A company is an association of member who works together to earn the profit. A Company is different from its legal entity. It is an artificial person. Before getting into the registration of a Company or Private Limited Company in India first let me make you understand about the Memorandum of association and Article of Association of a company. MoA reveals the name, objectives, registered office, capital of the Company. It basically states the relationship of the Company with the outside world. AoA is the necessary documents to be given at the time of incorporation of a Company. AoA and MoA together form the backbone of the Company Registration Ahmedabad.

 

What is a company?

 

The term company is derived from a Latin word which means an association of persons who took their meals together.

Latin word com: with or together, bread

A company is an artificial person created by law having perpetual succession and a common seal.

A company is a joint-stock enterprise in which the capital is contributed by several people who are likeminded persons formed for the purpose of carrying on some business.

A company is a corporate body and a legal personality having status distinct personality and separate from the members constituting it. It is also called as body corporate

The money contributed by a person is said to be the capital of the company. The amount contributed by each person is called a share.

Company according to The companies act, 2013?

According to the Companies Act, 2013 (Act No. 18 of 2013) a “company” means a company incorporated under this Act or under any previous company law [Section 2(20)].

 

Reasons to get a Company registration in Ahmedabad:

 

A company is the most common vehicle to carry on business for an entity intending to make a profit and enjoy the benefits of an incorporated entity.

 

  1. Corporate personality: By incorporating a company it has corporate personality means a company will have a name, common seal and it has capable of entering into contracts and can buy properties in its own name and can sue and be sued by others.
  2. Limited liability: By incorporating a company it has limited liability means the liability of their members is limited by their shares. This can be best illustrated by an example
  3. Illustration:  if A holds shares of the total nominal value of `2,000 and paid 1000/- as part payment at the time of allotment, he cannot be called upon to pay more than ` 1000/-, the amount remaining unpaid on his shares.
  4. Legal entity: This makes that the company itself is a person existed in the eyes of law and it is a separate person from its members. This means the company itself responsible for assets and liabilities, debtors and creditors. This shows that shareholders are not responsible for company acts.
  5. Share capital: The persons who invest money in the company are called shareholders and the contributed amount is called share. For the development of any business, investment is necessary so by this feature any person can buy/invest /contribute money to the company and it automatically raises the capital of the company.
  6. Trustworthiness / belief/ Regulations : All the companies incorporated must follow the provisions of the companies act 2013 and all the companies must register with the Registrar Of companies, all the companies are regulated from time to time by the companies act.
  7. Perpetual succession: A company is different from its members it has a perpetual succession and it never dies. The persons may die but the company never dies.

moreover , Ahmedabad is a city which is very consistent in development and has shown great growth in the past years. the city is culturally very active and is getting into the Corporate sector as well. the city has one of the best IIM’s and also the education is very god in the city. this is more the reason to do Company Registration in Ahmedabad.

 

Why do I need Company registration in Ahmedabad?

 

One will indulge in the process of doing something only if certain benefits can be availed from it. Similarly, incorporating a company has the following benefits:

 

  • You can limit your personal liability
  • Minimise your tax liability
  • Avoid conflict with your founders
  • Enhance your brand image and improve the relationships with your customers and suppliers
  • Raise significant capital for your business

 

Process for Company Registration in Ahmedabad:

 

There are 4 easy steps for the incorporation of a Company:

  1. Acquiring Digital Signature Certificate(DSC) - It is the first step in which each director of a company obtains their Identification Number. Director Identification Number(DIN) has become compulsory now as per the amendment. This form is available on the site of Ministry Of Corporate Affairs. The person needs to register himself on the MCA website with the fees. After filing DIN-1 director have to intimate the company about DIN through a DIN-2 form. Then the company will intimate the Registrar of the Corporates through a DIN-3 form. If any change in address, name, etc then the director will intimate this change through a DIN-4 form.
  2. Acquiring Director Identification Number(DIN) - Here to ensure the genuineness of the Document the Information Act of 2000 demands a valid digital signature on the documents submitted electronically. If the person has already the Digital signature then no need to apply for another. This digital signature is only valid for 1 or 2 years. Renewal is also done.
  3. Filing an E-form- This is about filing an E-form when you have a registered account on the ministry of Corporate Affairs.
  4. Incorporate the Company - This includes incorporating Company’s name, registered office, notice of appointment of the Company Directors, managers, promoters. Both Indian and Foreign directors need to have valid Digital Signature Certificate for the Incorporation of a Company.                                                                                                                                                                                                                                                                    Company Vakil takes care of the the procedure and requirements for you, just submit the required documents and leave the rest to us.

 

 

 

Minimum Requirements for Company registration in Ahmedabad:

 

As private limited companies in Ahmedabad are the most common form of companies that are registered in Ahmedabad, we will be dealing with the minimum requirements for registering a private limited company in Ahmedabad. The requirements for registering a private limited company are as follows:

  • Shareholders requirement
  • Directors requirement
  • The time duration for incorporating a company

 

Documents required for Company registration in Ahmedabad:

 

  1. Directors & Shareholders Documents
  2. Passport size photograph
  3. PAN Card copy (mandatory)
  4. Proof of Identity (Any one of the below)
    • Passport
    • Aadhar Card
    • Driving License
    • Voter ID
  5. Proof of Identity (Any one of the below)
    • Bank Statement
    • Electricity Bill
    • Telephone Bill
    • Mobile Bill
  6. Registered Office Address Proof Documents
  7. Office Property Ownership/Rental documents
  8. Address Proof of Registered Office Premises

Once you have these documents we are ready to roll our sleeves for you and get your company incorporated.

 

 

Advantages & Benefits of  Company registration in Ahmedabad:

 

A few advantages of a Company are:

  1. A company has a “Perpetual Succession” that is with the death of a person a Company doesn’t die.
  2. As a sole trader or in a partnership firm person is responsible for all the aspects of Business but this is not with the case of a Company as it is a separate legal entity from its members. Hence, this is an easy way to protect the personal assets.
  3. Companies and small Business are entitled to a range of tax deductions for education and training, etc.
  4. Registration helps in when conflict arises between founders like when a Company is registered, each person knows its shares and how much they have invested in a particular Company.
  5. Becoming a registered Company is also important as it enhances one’s business and dealings with the other companies.
  6. Raising capital is the sole motive of the Company for the expansion of the business. It is also preferable for investors to invest in a registered Company rather than in a partnership firm.

TIME TAKEN in registration process

1 day

DIGITAL SIGNATURE CERTIFICATE (DSC)

1 day

DIRECTOR IDENTIFICATION NUMBER (DIN)

5 to 7 days

COMPANY NAME CHECK & APPROVAL

5 to 7 days

INCORPORATION DOCUMENTS

FAQs, relating to Company registration in Ahmedabad:

 

1)  What is a Private Limited Company in Ahmedabad?

Run and managed privately by its directors and shareholders, a private limited company is not entitled to sell its shares to outside public investors and hence, it cannot trade on the stock exchanges, like the public limited companies do. Consequently, a private limited company is required to make much lesser administrative and financial disclosures to, and regulatory and annual compliances with the concerned authorities than those performed strictly by the public limited companies. Again, the shareholders of a private limited company , could be natural persons or companies, including the foreign companies.

 

2)  Is a Private Limited Company Suitable for making FDI ?

Yes, immensely suitable! The private limited companies have been a hugely popular form of business entity amid foreign investors for making the direct foreign investment (subject to FDI Guidelines) in any country, by means of a wholly-owned subsidiary, a joint venture, etc.

 

3)  Can a Foreign National Company be a Director/Shareholder of a Private Limited Company in India ?

Yes. Any foreign national or company, or an NRI can become a director, or hold a share of a private limited company in this country. But, at least one director on the Board of Directors of a private limited company must be a Resident in India. However, holding shares of a private limited company in this country by foreign nationals/companies will be subject to the contemporary FDI Guidelines.

 

4)  What are the Primary Requirements for setting up a Private Limited Company in Ahmedabad?

The statutory requirements for the incorporation of a private limited company are -

  • A minimum of Two Directors and Two Shareholders (The Directors can also be Shareholders). The maximum number of shareholders in a private limited company has been extended to 200 (from 50) under the new Companies Act of 2013.
  • No governmental recommendation regarding the Minimum Paid-up Share Capital required for incorporation of a private limited company anywhere in entire country, as per the latest Companies (Amendment) Act of 2015. The mandatory requirement of getting the certificate for business commencement has also been repealed by this Amendment Act of 2015.
  • Xerox copies of the PAN Cards of the Directors/Shareholders (Indian Nationals) or Copy of Passport (Foreign Nationals).
  • DINs (Director Identification Numbers) digital Signature Certificates) of the Directors.
  • Xerox copies of the Identity Proof and Address Proof of All Directors.
  • Address Proof of the proposed Registered Office of the company (along with the No Objection Certificate from Landowner, etc.)

 

5)  What is the general Procedure for Incorporating a Private Limited Company in Ahmedabad?

After obtaining the documents, the next task is to ensure the availability of the proposed name of the private limited company through filing the Form INC-1. Then, drafting appropriate Memorandum of Association (MOA) and Articles of Association (AOA) of the company will be made. And, finally, Form INC-29 will be filed with the concerned ROC for incorporation of the proposed company, together will all required documents.

 

6)  What is the Tentative Time-period Lapsed in the Incorporation of a Private Limited Company in Ahmedabad?

Based on the requirement of obtaining diverse requisite documents, authenticity of the documents submitted by the directors/shareholders, the speed of processing and filing forms & documents, and the briskness of the proceeding performed by the concerned government authorities, the approximate time taken by the entire procedure for incorporation may range from One to Two Weeks.

 

7)  What are MOA and AOA?

MOA stands for Memorandum of Association whereas AOA means Articles of Association. Both these documents act as an important source of information for various shareholders and other stakeholders associated with a Company.

MOA reveals the name, aims, objectives, registered office address, the clause regarding limited liability, minimum paid-up capital and share capital of a Company. In short, it explains the relationship of a Company with the outside world.

AOAs are the necessary documents to be submitted when the company is incorporated with the Registrar of Companies (ROC). When AOAs are in conjunction with the MOA, they are called the Constitution of the Company.

 

8)  What is a Directors Identification Number (DIN)?

DIN, Directors Identification Number, is actually an identification number issued to a Director or a prospective Director of a Company by the Ministry of Corporate Affairs. The concept of DIN was introduced for the first time when Sections 266A and 266G were inserted in the Companies Act.

To obtain a DIN, one needs to make an online application to the Ministry of Corporate Affairs and submit the required documents related to Identity and Address Proof. Once the Ministry verifies these documents, the DIN will be allotted to the person.

 

9)  What is DPIN?

The DPIN (Designated Partner Identification Number) used for identifying a designated partner in a Limited Liability Partnership (LLP) firm, is equivalent to the DIN (Director Identification Number) of a director of a private or public limited company. Both of these identifying numbers are issued by the Ministry of Corporate Affairs (MCA).

 

10)  What is Sec. 8 Company? (Earlier Known as Section 25 Company)

A non-profit organization can be registered as a Trust or as Society under the Registrar of Societies as a private limited non-profit company under Section 8 of the Companies Act, 2013.

Earlier, this Section 8 was popularly known as Section 25 of the old Companies Act, 1956. Now, according to the Section 8 (1a, 1b, 1c) of the new Companies Act, 2013, a Section 8 Company can be incorporated to promote commerce, art, science, research, sports, social welfare, education, charity, religion, protection of the environment or any such object. The condition is that such a Company should use its profits (if any) for promoting its objects and should not pay any dividends to its members.

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