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BORROWING CAPACITY

A company enjoys better avenues forborrowing of funds. It can issue debentures,secured as well as unsecured, acceptdeposits from the public, etc. Even bankingand financial institutions prefer to render

large financial assistance to the companyrather than partnership firms or proprietaryconcerns.

TAXATION

Sole traders andpartnerships payincome tax.

Companies pay Corporation tax on their

taxable profits. There is a wider range of

allowances and tax deductible costs that can

be offsetagainst company'sprofits.

RAISING MONEY FROM PUBLIC

Public Limited Companies can raise large

amount of capital from the general public

by issue of shares and public deposits.

Private Limited Companies can raise

capital by private placement of shares

and deposits.

THE ADVANTAGES OF REGISTRATION OF COMPANY

A Private limited company has many advantagesover proprietorships and partnerships as elaborated below.

First and foremost benefit of doing businessvia company is the limited liability conferredupon the company's directors andshareholders. As a sole trader or partnershipbusiness, personal assets of the proprietor orpartners can be at risk in the event of a failureof the business, but this is not the case for aCompany. The unfortunate events likebusiness failures are not always under anentrepreneur's control; hence it is pivotal tosecure the personal assets of the businessmanin theeventof crises.

Unlike proprietorship and partnership, if aCompany becomes insolvent and is wound

up, only the assets of the company are used toclear its debts. The Directors or Shareholdersof the company have no personal liabilitiesandare notmadebankrupt.

LIMITED LIABILITY LEGAL ENTITY OR RECOGNITION

A private limited company is a legal entity, a

juristic personestablished under theAct. It has

its existence separate from its directors and

members.

Operating as a private limited company often

gives suppliers and customers a sense of

confidence in a business. Largerorganizations

in particular willprefer in dealing withprivate

limited companies than proprietorship /

partnership organizations.

Easy to attract quality workforce and achieve

strategic motivation of employees by usingflexible and wide range of management

designations.

EASY TRANSFERABILITY

Where it is proposedto sell the businessas a

going concern, all that is required is to

transfer the entire shareholding to the

purchaser and thus facilitates easy change

in managementandownership.

This will save time and money for the

Promoters. Huge amount of stamp duty is

saved.

This feature is very useful for easy and

hassle free exit avenues for entrepreneurs.

Easy transferability of business and

ownership also helps in attracting venturecapital funding fornewbusiness ventures.

DUAL RELATIONSHIP

In thecompany form oforganizationit is possible fora company tomake a valid contract withany of its shareholders/directors. It is also possible for

a person to be in control of a company and at the same time be in itsemployment. Thus, a person can at the same time be a shareholder, director,

creditorand employee of thecompany.

For eg:

As a director he can receive remuneration.

As a shareholder he can receive dividend.

As a lessor he can receive lease rent.

As a creditor he can lend money and earn interest.

As a supplier he can supply goods from his/his family business.

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An ISO 9001 : 2008 Company

Empowering Entrepreneurship

PUNE BANGALORE MUMBAI CHENNAIl l l

Tel : +91 20 6729 6500 / 6400 5120 Email : enquiry@bmcgroup.in Website : www.bmcgroup.in

Copyright 2011-12 - All rights reserved BMC Consultancy Services Pvt. Ltd.

TM

7/30/2019 Private Limited Registration

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PROCEDURE/STEPS INVOLVED IN REGISTRATION

STEP NO. STEPSTIME FRAME

(Working days)

Preliminary Documentation

Discussion

Ascertaining document requirement and availability

Preparation of signing documents by BMC

Signing of the Incorporation documents by Promoters

Sending the Signed document by Promoters to BMC

between BMC Team & the Promoters of the Company:

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DSC (Digital Signature Certificate)Getting DSC for any one of the Director for digital authentication of the Incorporation documents

DIN (Director Identification Number)Approved DIN is a pre-requisite for incorporation process

Preparation of Main Object & Search

Preparation of Main Object by BMC

The Promoters have to provide atleast 6 (Six) names in the order of priority

To make an online search of availability of names as desired by the Promoters

Confirmation of the draft main object & the final name

Name Availability

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Application for Name Availability

Filing of Form 1A with the concerned ROCl

Final Process:

After ROC's approval for name of the Company, filing all the Incorporation documents with the ROC

Online uploading of e-Forms

Payment of Registration fees

Receiving Incorporation Certificate

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5(Varies by the response time

taken by the Promoters)1

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6

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5

3(Varies by the response time

taken by the Promoters)

An ISO 9001 : 2008 Company

Empowering Entrepreneurship

PUNE BANGALORE MUMBAI CHENNAIl l l

Tel : +91 20 6729 6500 / 6400 5120 Email : enquiry@bmcgroup.in Website : www.bmcgroup.in

Copyright 2011-12 - All rights reserved BMC Consultancy Services Pvt. Ltd.

TM

Minimum Requirements

REGISTRATION OF PRIVATE LIMITED COMPANY

Document Particulars Important Points to be considered

i) Passport size photograph

ii) Proof of Identity: (SELF ATTESTED)l PAN Card copy

(mandatory for Indian residents)

l Passport copy

(mandatory for Foreign Nationals/NRIs/PIO card holders)

iii Proof of Residence: (SELF ATTESTED)

(Any one of the below)

l Passport copy

l Driving License copy

l Election (Voter Identity) Card copy

l Electricity bill

l Telephone bill

l Bank Account Statement

l UID/Aadhar Card

Soft/Scan Copy

1. The Identity& Residence Proof mustbe selfattested by the respectiveDirectors.

2. The address proof shouldbe in the name of

the applicant and shall have Pincode/Zip

code init.

3. Please ensure that the address proof is not

older than 40 days (In case of Telephone

bill,Bank statement& Lightbill)

4. Ensure that the scan documents are clear &

visible

DIN & Digital Signature Requirements(Please provide below mentioned documents for all the Directors)

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Minimum 2 Shareholders

Minimum 2 Directors

The directors and shareholders can be same

person

Minimum Share Capital shall be 100,000

(INR One Lac)

DIN (Director Identification Number) for all

the Directors

DSC (Digital Signature Certificate) for one of

the Directors