Private Limited is the most preferred business structure for start-ups and small businesses in India. It is very easy to register a private limited company. The Ministry of Corporate Affairs gives you the rights to do business anywhere in India and outside India, if the registration is authorized & registered. The hallmark of a private limited company is that it enables it to maximize & expand external funding, limit the responsibilities of its shareholders and provide employees with stock options to attract top talent.
By company law, a private limited company registration in trichy is done which has a limited liability with a minimum of two and a maximum of 200 members. Although a private limited company has limited liability and a separate legal entity, at the same time it has all the advantages of a partnership, such as flexibility, greater capital combination of different and diverse capabilities, and so on. Before choosing a private limited company, one must keep in mind:
- Limited the shares of that private limited company are not listed on the stock exchanges and therefore cannot be traded freely.
- Share The scope is limited but has few legal limitations due to limitations on many shareholders.
- That word “Pvt. Ltd”. The name must have a suffix.
- Least At least one designated partner must be an Indian citizen for the private limited company registration in manaparai.
Documents required for private limited company registration
- For Directors / Shareholders
Pvt ltd company registration needs a photo
Copy of PAN card
Copy of Proof of Address – Aadhar Card / Driving License / Passport / Voter ID
Copy of Bank Statement / Mobile Phone / Landline Telephone Bill
Copy of Aadhar card
- For company address
Proof of registered address – deed of sale / lease agreement
Pvt ltd company registration in thillai nagar needs Copy of utility bill – electricity / gas bill – not older than two months.
There is no objectionable certificate to use the premises if necessary.
Pre-requisites for forming the company registration in Trichy
Prerequisites for registration of a private limited company in India are that it must have at least two shareholders (maximum number of its shareholders 50), and the minimum pay-up capital at the time of its merger is 100,000 / -. The Private Limited Company registration in chennai process begins by sending the company at least four proposed names to the Registrar of Companies (ROC) in the State Territory, where the company’s main registered office is to be established, or to conduct business. The company registration in Trichy needs the name approved by the concerned ROC is valid for a maximum of six months. During this period the Memorandum of Association (MOA) and Articles of Association (AOA) must be filed with the ROC along with other necessary and supporting documents. The good support of our experienced and punctuated company lawyers and attorneys will be provided to design and prepare these required documents for filing with the ROC. Generally, the entire process of registration of private companies in India takes two to three weeks.
Key Benefits company registration in Trichy
A) Tax Benefits: The most important reason to turn a company into an LLP is the tax front. Currently, the Income Tax Act, 1961 also provides for the payment of minimum alternative tax (MAT) and the payment of corporate dividend distribution tax (DDT). Non-company LLP should not be liable to pay DDT.
B) Unlimited number of shareholders / partners unlike private limited companies (limited to 50 shareholders), an LLP may have an unlimited number of partners.
C) Minimum Compliance Level & Cost Model Meetings and Consent for the Maintenance of Heavy Legal Records are not required.
D) All assets and liabilities of the company before the automatic transfer becomes the assets and liabilities of the LLP.
E) No stamp duty: All moving and static features of the company are automatically in the LLP registration in trichy. The transfer device does not have to be operated and therefore no stamp duty has to be paid.
F) No Capital Gains Tax: Capital Gains Tax is not levied on the transfer of property from a company to an LLP.
G) Continuation of brand value: The goodwill of the company and its brand value will not be touched and success can be enjoyed legally.
H) Go Ahead and Stop Losses and Absorbed Depreciation: The accumulated loss and uncorrected depreciation of the company is treated as the loss / depreciation of the legacy LLP in the previous year. Such loss may be borne by the heir LLP for another eight years.
As OPC getting converted into private limited company the private limited company can be converted into LLP.
The key requirements for the conversion are:
- In exchange, all the members / shareholders of the company become partners of the LLP, while their capital accounts are in the company’s books on the date of the exchange.
- Filing income tax returns and annual income with Rosie
- Consent of all unsecured lenders for the proposed exchange
- Partners are considered only through the allocation of shares in the LLP
- Minimum 2 designated partners
- At least 1 of the designated partners must be an Indian resident
- If the body is a corporate partner, it must nominate the natural person as its nominee- partnership firm registration in trichy.
- Partners and designated partners may be the same person
- There is no concept of share capital, but there must be some sort of contribution from each partner
- DIN (Director Identification Number) for all designated partners
- DSC (Digital Signature Certificate) for two designated partners
Benefits when the Private limited company gets converted into LLP
By converting to LLP, the company saves on dividend distribution tax, minimum alternative tax and income tax as interest and wages to partners are paid as salary to directors. There was no capital gains tax when the previous company became an LLP, but after the 2016 amendment, a company with assets over Rs 5 crore in the previous three years would have to pay capital gains tax.
Less legal compliance:
Relief in the form of an LLP, compared to the legal consent of a private limited company under the Companies Act 2013. There is no need to maintain legal record registers. Resolutions are not required to raise capital, add or remove directors. There is no such requirement to hold a mandatory annual meeting. There are no conditions or limits on loans except as stated in the LLP agreement. Mandatory audit only if turnover exceeds 40 lakhs. To know more about private limited company registration in trichy, click here.