If you are planning to start a company in India, make sure to get it registered as it is the most prevalent legal structure for business in India. Start-ups customarily favour Private Limited company as outside funding is easily raised, limits the liability of its shareholders and permits them to offer employee stock options to boost up the top talent Whereas Public Limited company has better access to capital in terms that they can offer their shares toPublic and such company will often find itself in a better position when looking at other potential sources of finance. They are governed by the MCA (Ministry of Corporate Affairs) and regulated by the Companies Act, 2013 along with the rules made thereunder. Private Limited Companycan have a minimum of 2 members and a maximum of 200 members whereas Public Limited Company can have minimum 7 members and there is no upper limit.

 

BENEFITS OF A PRIVATE COMPANY

  • Limited Liability for members
  • Easy to fetch funding in a private limited company
  • Easy to allocate and redistribute shares to investors or other directors
  • No such minimum capital compulsion
  • Easy to dissolve or wind-up

 

BENEFITS OF A PUBLIC COMPANY

  • Liquidity: shareholders are able to buy and sell their shares (if they are quoted on a stock exchange
  • Can issue shares to the general public
  • Widening the shareholder base and spreading risk
  • Growth and expansion opportunities
  • Give a company a more prestigious profile
  • Higher transparency

 

STEPS INVOLVED IN PRIVATE/PUBLIC COMPANY REGISTRATION

1. Application of DSC

2. Submit form Spice+ with MCA

  • Spice+ Part A for Name reservation
  • Spice+ Part B for:
  • Incorporation
  • DIN(Director’s Identification Number) allotment
  • Mandatory issue of PAN, TAN, EPFO registration, ESIC registration
  • Mandatory Opening of Bank Account for the Company
  • Allotment of GSTIN (if so applied for)

3. File declaration for commencement of business

 

DOCUMENTS REQUIRED FOR REGISTRATION

  • Copy of PAN card of Directors (Passport in case of Foreigner)
  • Copy of id proof and address proof of subscribers
  • Proof of Address of Registered office
  • Utility bill
  • NOC of the landlord or the owner of the property
  • Passport size photograph of the person to be authorised for various registrations in part B

 

THE J&P ADVANTAGE:

Our CS Team at J&P handles all kinds of incorporation with utmost due diligence. From documents compiling to final incorporation our team works with utmost care leaving no potential loopholes.Our team adheres to timelines and responds to office action on timely basis thereby creating a comprehensive approach.