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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 : [email protected] Website : www.bmcgroup.in
Copyright 2011-12 - All rights reserved BMC Consultancy Services Pvt. Ltd.
TM
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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
3
2
4
5
6
1
1
5
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 : [email protected] 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
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