Company Registration
The process of company registration in India is also known as company formation or company incorporation. When you apply for company registration, it assures that your company becomes a separate entity, and owns an official existence of its own. The Corporate Affairs Ministry is responsible to handle your company registration procedure.
Overview
Talking about the process of company registration in India, the first step comprises of choosing a name for the firm and issuing an application for the name. Once done, compile all your important documents and official forms that you need and hand over them to the state ROC. To fulfill all the legal approvals and verification, you’ll also have to provide the articles of association and memorandum of association. As you’re done with all these steps, lastly file a request for the company registration certification.
Benefits of Company Registration
Limited Liability
Limited Liability is the first among the many private limited company benefits. Unlike proprietorships, and partnerships, private limited companies exist as separate legal entities from their shareholders. Neither do the shareholders pocket all the gains nor are they liable for all the losses of the company. The income and the liability of the company are distributed.
Attractive to Investors
Private Limited Companies are attractive for investors owing to its high potential for growth and historical records of success in the Indian market. Further, a Private Limited company is a popular name in the domestic as well as Indian market, and sounds more convincing to entrepreneurs looking forward to making it big in their respective industries.
Preferred by banks
Private Limited companies are entities that require mandatory registration with the Registrar of Companies (RoC) under the Ministry of Corporate Affairs. The process of registration is primarily governed by the Companies Act 2013 and the Company Incorporation Rules 2014, along with several other provisions mentioned in statutes like the Trademark Act
Perpetual Existence
A private limited company’s existence does not depend on the lifespan of its owners, as a company has a distinct legal identity of its own. It means that a private limited company shall continue to exist even in some adverse cases like death, resignation, retirement, removal, insolvency, or proven insanity of any shareholder. It shall only cease to exist when wounded up or voluntarily dissolved.
Easy to incorporate
The introduction of the SPICe+ application has made the process of company registration completely online. SPICe+ / INC 29 is an online application for the registration of a company and 10 additional services from the Ministries of Finance, Labour, and Corporate Affairs. These include applications for DIN, PAN, TAN, registrations under GST, PT, EPF, ESIC, and Shops & Establishment Act,
Power to sue
Details of Being legally incorporated entities, private companies have the right to sue third parties in a court of law for disputes. All documents including contracts, agreements and memorandums agreed by the company shall be admissible in a court of law. While an unregistered entity doesn’t have this privilege and hence it is unable to protect its rights in the condition of conflicts with third parties.