Private Limited Company Registration In Chennai

Company Limited by Shares In Chennai

In these companies, the members' liability is limited to the nominal share amount as mentioned in the Memorandum of Association. The shareholder cannot be held liable or asked to pay more than his/her share capital invested in the company.

Company Limited by Guarantee In Chennai

In a private limited company limited by guarantee, the members' liability is limited to the amount of liability each member undertakes in the Memorandum of Association. Consequently, members of a Private Limited Company Limited by Guarantee cannot be held accountable for a sum greater than the amount of guarantee performed by the member in the Association Memorandum.
Furthermore, the shareholder's guarantee in a company Limited by Guarantee can be sought only in the case of the company winding-up. The guarantee of the members of a Company Limited by Guarantee cannot be withdrawn when the company is a going concern.

Unlimited Companies In Chennai

Unlimited corporations are those types of businesses that have no restrictions on their members' liability. Each member's liability extends over the entire amount of the company's debts and liabilities. Hence, an unlimited company's creditors have the right, if wound up, to impose the company's debt and liabilities on shareholders.
Despite not giving limited liability protection to the shareholders, an unlimited company is still regarded as a separate legal entity. The members of an unlimited firm cannot, therefore, be sued individually.

In Chennai it is mandatory for all private companies to use the word private limited after its name.

In Chennai to start a company, a minimum number of 2 members are required and a maximum number of 200 members as per the provisions of the Companies Act, 2013.

In Chennai the liability of each member or shareholder is limited. It means that if a company faces loss under any circumstances then its shareholders are not liable to sell their own assets for payment. The personal, individual assets of the shareholders are not at risk.

In Chennai the Company keeps on existing in the eyes of law even in the case of death, insolvency, the bankruptcy of any of its members. This leads to the perpetual succession of the company. The life of the company keeps on existing forever.

In Chennai when it comes to directors a private company need to have only two directors. With the existence of 2 directors, a private company can come into operations.

In Chennai with the Companies Amendment Act 2015, there is no minimum requirement of paid-up capital of the Company. That means now Company can be formed with even Rs. 1,000 as paid-up capital.

In Chennai prospectus is a detailed statement of the company affairs that is issued by a company for its public. However, in the case of a private limited company, there is no such need to issue a prospectus because this public is not invited to subscribe for the shares of the company.

OWNERSHIP

In a public company, regulation and ownership of shares can be sold to the public on an open market. On the other hand, in a private company, shares can be sold or transferred to other people by the choice of the owner. Shares of such companies are owned by founders, management, or a group of private investors. Shares here are not sold in the open market. Thus there will be less number of shareholders. This means less complexity and confusion in decision-making and management.

MINIMUM NUMBER OF SHAREHOLDERS

In Chennai For a private company, a minimum number of required shareholders is 2, whereas, for a public company, you require a minimum of 7 shareholders.

LEGAL FORMALITIES

In Chennai Legal formalities are sometimes very expensive and time-consuming. Private companies have a comparatively shorter list of legal formalities for forming a company.

DISCLOSING INFORMATION

In Chennai A public company is required to disclose their financial reports to the public every quarter, as it will affect public investment; private companies are not subjected to any such compulsion.

MANAGEMENT AND DECISION MAKING

In Chennai Management and decision-making become more complex and confusing in public companies as more number of shareholders is to be consulted. This complex procedure is eliminated in a private company as the number of shareholders is less.

FOCUS OF MANAGEMENT

In Chennai Managers of Public companies are focused on increasing the value of shares, whereas managers of the private company are more flexible in the short term and long term business decisions.

STOCK MARKET PRESSURE

In Chennai Private companies are not pressurized by the stock market and you don’t have to worry about shareholder expectations and interference as long as they work within the law.

LONG TERM PLANNING

In Chennai Managers of public companies are pressurized to increase earnings in the short term in order to increase the value of their stock. Private companies can focus on long-term earnings as such pressure is eliminated.

MINIMUM SHARE CAPITAL

In Chennai For a private company, the earlier minimum number of the share capital was Rs. 1,00,000, but now there is no such minimum compulsion. Therefore there is no pressure of fund requirements.

CONFIDENTIAL

It is obviously not appropriate, for competitors to know about your business secrets. Confidential information such as executive compensation, legal settlements, and other essential information cannot be kept reserved in public companies. Such information is more secure in a private company.

Share capital amount and proposed ratio for holding shares.

A short description of the company and object of the business.

Ownership and sale deed (In case your own premise).

Identity proof of the Directors and Shareholders (PAN Card).

Address proof of the registered office (Latest Electricity bill, telephone bill, etc.)

Address proof of the Director or the Shareholder (Voter ID, Passport, Driving license, etc.)

Latest Bank Statement of directors. (Not older than 2 months)

Occupation details of directors as well as shareholders.

Email address of the directors and shareholders.

Contact details of directors and shareholders.

Passport size photo of directors and shareholders.

In case the property is on rent then you need to submit a copy of the rent agreement with No Objection Certificate (NOC) from the landlord.

In case you are a foreign national subscriber then you need to provide Nationality proof and passport.

All the Subscribers should have Digital Signature.

Proposed company E-mail id and Phone No is also mandatory required.

1. Fill SPICe+ Part A for application of Reservation of Name of Company by paying Rs 1000/-. Up to 2 names can be provided in one application. In case of rejection of both names, one more opportunity will be provided for resubmission of application with another 2 new names. One has to re-submit the form within fifteen days after rectifying the defects.

Digital Signature

Digital signature must be obtained for the proposed Directors of the Company. Digital signature is required for signing of the incorporation application.

Fill SPICe+ Part B for filing the details of proposed company

Attachments to be annexed with SPICe+.

• DIR-2 consent to act as Director along with Copy of Proof of Identity and residential address.(Self Executed)

• Proof of Office address (Conveyance Lease Deed, Rent Agreement etc.)

• Copy of the utility bill of Registered Address (not older than two months)

• NOC from the owner of the property.

• In case of subscribers/ Director does not have a DIN, it is mandatory to attach: Proof of identity and Proof of Residential.

• PAN is mandatory in case of subscriber and director.

• Interest of first directors in the other entities.

Part B of SPICe+ shall be accompanied with SPICe+ is SPICE+ MOA (INC-33), SPICE+ AOA (INC-34), AGILE-PRO, INC-9.

Certificate of incorporation will be issued by ROC with PAN and TAN of the company.

Open a current bank account on the company name.