Private Limited Company Registration in Kolkata

Online Company Registration In Kolkata

When a group of people come together, mutually with a view of forming an association to exploit the business opportunities by bringing Market, Man, Money, Management, and Machines simultaneously, brings a company into existence. This can be explained in a simple mathematical equation.

                                                                                                      Idea + Business + Money = Incorporation

In Kolkata, forming a company was a strenuous task. Registration of a company is a knotty activity involving some legal formalities and procedures. For this, a series of steps are to be followed.

Depending on the nature of the business, size of business, capital requirement, government policies etc. the form of Company to be registered, varies. What one needs to do is to choose his form of business as per his needs. With the upcoming technology, the Company Registration in Kolkata can be done online.

Kolkata which is also known as Calcutta is the capital city of West Bengal. Located on the eastern bank of river Hooghly, Kolkata has a very rich history in our country. Talking about the colonial era, Kolkata was the first place to be acquired for trade by the Britishers. Later from 1773 to 1911, Kolkata also served as the capital of our country for the Britishers and later as centre for Nation's Independence movement. One can witness English architecture in this city due to the impact of Britishers on this city which was greater than the impact on any other places in our country.

Company Incorporation in Kolkata has many advantages for a business and its owners. Drafting an ‘Articles of Incorporation’ i.e. a draft which contains the primary purpose of business and its location is also a major part of Incorporation.

Under the Companies Act, 2013 there are five types of companies that can be registered. These are:

1. Private Limited Company
2. Public Limited Company
3. Part – I Company
4. Section 8 Company
5. One Person Company

Reasons, Benefits And Need For Company Registration In Kolkata

The question that would venture in your mind would be that what is the need for company registration in Kolkata? 

The following are the reasons for registration of a company:

1.  Tax Efficiency & Higher Personal Income: As the director of a limited company you can choose to take a smaller salary and instead take more of your income as “dividends”. There are significant potential tax savings. This is due to lower rates of tax via dividends. You can set up your business as a limited company instead of operating as a sole trader along with cash-flow benefits.
2.  Limited Liability: As a sole trader or partnership you are legally responsible for all aspects of your business, including any debts and losses. This can result in the loss of all your personal assets such as your car and home. A company is a separate legal entity so it becomes an easy way to protect your personal assets from your business actions.
3.  A Stronger Professional Image and Increased Growth Potential: It is often that the businesses prefer to work with limited companies in comparison to sole traders. Therefore, registering as a limited company can boost your professional image. This helps you to grow your business.
4.  Easier to Borrow Money and Obtain Funding: If you are looking for a loan to grow your business or to attract investment, it is very difficult to do this without having a limited company structure in place.
5.  Company Name Protection: Your company name is automatically protected once it has been registered with Companies House. Thus, only you can use and exploit your company’s name.
6.  Selling Your Company in the Future: When your business is incorporated it means that it is easier to sell a shareholding, or bring in new partners or trade the business in the event that you should wish to exit the business in the future.
7.  Pensions: The cost of a limited company which pays towards its employees’ or directors’ pensions is allowed as a business expense which is not an option when operating your business as a sole trader.

Process Of Company Registration In Kolkata

Follow the steps for Company Incorporation in Kolkata:

Step 1: Obtaining Director Identification Number (DIN) & Digital Signature

1. Obtaining Director Identification Number (DIN) for the proposed Directors in the Company
2. Obtaining Digital Signature for one of the Directors of Company.

When all this is done, application for the name of Private Limited Company must be applied.

Step 2: Applying for the name

One or more suitable name must be proposed by the promoters as the name of the company. The reason behind this is that it offers the elasticity and choice to Registrar to select the name as there may be a case where the names are identical or similar to registered business entities or trademark.

1. The name should not be identical to any registered company or trademark.
2. The name should not be one which is prohibited under the ‘Emblems and Names Act, 1950’.
3. The name of the company must have the suffix ‘Pvt. Ltd. Company’.

Once the name has been submitted, the registrar will review and approve one of the names. Generally, it takes 3 to 5 working days for approval of the name for the company and its registration procedure.

Step 3: Filing for Incorporation of Private Limited Company in Kolkata

Once the name has been approved, the promoters should submit the application along with the prescribed fees and the following documents to the registrar:

1. Articles of Association
2. Memorandum of Association
3. Declaration from the Directors
4. Affidavits of the Directors
5. A declaration stating that the requirements of the Act and the rules framed thereunder have been complied with.

This declaration is required to be signed by an advocate of the Supreme Court or an attorney or a leader having the right to appear before the High Court or by a person named in the Articles as a Director, Manager or Secretary of the Company or a Chartered Accountant in whole time practice who is engaged in the formation of a company.
The company must provide relevant information regarding its registered office within 15 days of registration or during the filing of documents related to company incorporation in Kolkata.

Step 4: Subscribing to the Private Limited Company

As per the Companies Act 2013, a subscriber must sign their names and must be subscribed to the shares of the company incorporated. It means each subscriber must have at least a single share of the company. The memorandum must be signed by each subscriber in the presence of at least one witness and must clearly state the following:

• Address
• Personal Description
• Occupation
• No of shares subscribed
• Nature of shares etc.

Likewise, both (Article and Memorandum of association) must be duly signed and stamped.

Step 5: Certificate of Incorporation

After filing the documents and payment of necessary fees, the certificate of limited incorporation would be issued by the Registrar of Companies. Through incorporation, the company becomes a legal person separate from its members