Pvt ltd registration online has innumerable advantages for any company that top over a Partnership or Proprietorship Firm. One of the requisites for filing under the program is that the firm must have minimum number of two members as opposed to one that is relevant for OPC. The liability lessens down for both the directors involved with the firm, and in case of any damage, they are only required to sell the assets belonging to the firm. A meagre amount of documentation is needed for the process. You need to furnish passport, resident proof, identification card- voter ID, electricity bill, driving license (if any), ration card, and bank statements. The registered office address of the company must be validated from beforehand to be submitted for obtaining the registration. Before you opt for the registration, know in details the benefits of such a scheme.
Legal Identity- the registration allows the company to enjoy a legal status to receive a hoard of rights and benefits that come under the law. The company also becomes eligible to bear the legal proceedings in case the need be so. In a nutshell, the company acquires more stable identity, an individual that can pay its debts, incur property, and therefore sparing the directors or shareholders the liability of debts to creditors.
Perpetual Succession Granted- the terms refer to company’s perennial existence lasting forever till it is dissolved in compliance with the legal terms. This right is significant since the company is historically considered to enjoy a separate legal status. The company would thereafter continue to function irrespective of any changes in its directorial board, employees, staff, and shareholders. These changes would bear no impact on the essential being of the company.
Less Liability- private limited company registration in India means that the legal responsibility of the company is reduced unless and until the members have lawfully agreed to limitless liabilities.
Convenience in Transferring Shares- the shares can be transferred from one shareholder to the other with substantial amount of ease and fewer legal complications. The choice is completely based on the decision of existing shareholder who is handling over the share. With the completion of registration, the private companies can jot down various restrictions on the transfer of shares as decided after mutual agreement. However, in case there could never exist a total ban on the shares.
Property Owning- the private limited company registration in India status allows companies to own, sell, and alienate property in its registered name. No shareholder possesses the right to lay claim on the property. In a nutshell, the shareholder, henceforth, will have no right to extract profit from company’s property because property listed under the company’s name does not literally belong to anyone else.
Many start-ups have taken recourse to the registration since it bestows upon them a solid legal framework and paves way for external funding. The liabilities are limited and shareholders are never subjected under a tremendous amount of mental pressure that ensues from owing a company.
