What is Online Company Registration in Mumbai Maharashtra?

Every person who wants to establish a new company in Mumbai Maharashtra has to mandatorily do Online Company Registration in Mumbai Maharashtra. It is done to acquire a legal status to operate in the region. Without this, it’s not possible to run a company in Maharashtra as it would constitute a crime if done so without registration. So most of the companies irrespective of its type has to complete Online Company Incorporation in Mumbai Maharashtra process.

 

What is Private Limited Company and why it requires Online Company Registration in Mumbai Maharashtra?

As per The Companies Act, 2013, a company can be either a private limited company or public limited company. In both the cases, Online Company Registration in Mumbai Maharashtra is mandatory. According to the Section 2(68) as amended in 2015 by the Companies (Amendment) Act, 2015 a private company means a company having minimum paid-up share capital and which by its articles restrict the right to transfer its shares. The maximum limits of the private limited company as per Online Company Incorporation in Mumbai Maharashtra rules, except in case of one person company is 200, but the person who is a employee in the company and person who, having been formerly in the employment of the company, were members of the company while in the employment and have continued to be member after the employment ceased, would not be included in the limit of 200 according to Section 2(68) of The Companies Act.

A private limited company having registration under Online Company Registration in Mumbai Maharashtra has to contain the specific restrictions so as to prevent anybody or everybody acquiring shares of the company by transfer and thereby defeating the very objective of online Company Formation in Mumbai Maharashtra as private company, but this restriction should not be considered a ban on the transfer of shares, transfer in circumstances not covered by specific restriction is possible.

A private limited company having registration under Online Company Registration in Mumbai Maharashtra cannot make an invitation to the public to subscribe for any securities of the Company, the article of the private limited company prohibits the invitation to the public to subscribe to any kind of securities, it means a private company cannot make any public issue or publish any kind of advertisement inviting investment from the public. According to Section 23 (2) of the Companies Act, 2013 a private limited company can issue securities through the rights issue, bonus issue or through private placement but the issue must comply with the provision of the Part -2 of Chapter III of The Companies Act, 2013.

A private limited article has to contain a specific restriction on the total membership of the company as per the rules of Online Company Registration in Mumbai Maharashtra, the permissible limit of the total number of member is 200, but where two persons hold one or more share jointly for the purpose of membership, then they will be considered as a single member.  

 

What are different types of Online Company Registration in Mumbai Maharashtra ?

The Companies Act, 2013 provides different kinds of online company registration in Mumbai Maharashtra, the two common types of companies that can be incorporated in Mumbai Maharashtra under the Online Company Incorporation in Mumbai Maharashtra Act are as follows-

  • Private Company – A private company can be sub-categorised into two types of company as per online company formation in Mumbai Maharashtra rules.
  • One Person Company – For the first time The Companies Act, 2013 allowed Online Company Registration in Mumbai Maharashtra of a limited liability company by just one person. Section 2(62) of The Companies Act, 2013 defines One Person Company as a company in which there is only one member. One person company is described under Section 3(1)(c) as a private company in which there is only one shareholder and the legal and financial liability is limited to the company only. In Maharashtra, the concept of One Person Company is incorporated after the recommendation of the J.J Irani Expert Committee.
  • Small Company- The concept of the small companies is introduced for the first time in The Companies Act, 2013. As per the Section 2(85) of the Act small companies means a company other than a public company and whose paid-up capital does not exceed Rs. Fifty lakhs and turnover also does not exceed two crores rupees.  
  • Public Company – According to Section 2(71) of The Companies Act, 2013 a public company means a company which is not private and has minimum paid-up capital, as may be prescribed. A public company can be formed by seven or more members according to Section 3(1)(a) of The Companies Act, 2013. Public companies are also required to register under Online Company Registration in Mumbai Maharashtra.

A subsidiary company of the public company shall be considered as the public company for the purpose of this Act. These companies may be registered and incorporated either as Limited Liability Company or Unlimited Liability Company.

Liability of the company as per Online Company Registration in Mumbai Maharashtra rules can be limited from the following manner: –  

  • Company Limited by Shares – As per the Online Company Registration in Mumbai Maharashtra laws, company limited by shares means a company whose member liability is limited by its memorandum to such amount which is unpaid by them on the share held by them respectively.
  • Company Limited by Guarantee – As per Online Company Registration in Mumbai Maharashtra laws, a company limited by guarantee means a company having the liability of its member limited by its memorandum to such amount which members may respectively agree to the company in the event of winding up.

There are also various kinds of a company other than the private and public company which does Online Company Formation in Mumbai Maharashtra and these companies may be classified as follows –

    • Statutory Companies
    • Government Companies
    • Holding and Subsidiary Company etc  

 

Private Limited Company Registration in Mumbai Maharashtra – A Brief

The pvt ltd company registration in Mumbai Maharashtra is the most common and popular entity for doing business in Mumbai Maharashtra. Online Company Registration in Mumbai Maharashtra law defines the meaning of the private limited company, according to section 2(68) of the Companies Act, 2013 the maximum limit of the member for private limited company is 200, private limited company is restricted to make public offer and member can only transfer the securities according to the article of the company, a private limited company which is registered under Private Limited Company Registration in Mumbai Maharashtra, is owned by a closed group of person hence the public participation is prohibited.  The Companies Act, 2013, Company Incorporation Rules 2014, Online Company Registration in Mumbai Maharashtra Rules and Ministry of Corporate Affairs govern the registration and incorporation of Private Limited Company Registration in Mumbai Maharashtra.

According to Section 3 of The Companies Act, 2013 and Online Company Registration in Mumbai Maharashtra Rules, minimum 2 persons are required to register a private limited company in Mumbai Maharashtra, a minimum of two shareholders and two directors are required. A natural person can be both a director and shareholder, but a corporate legal entity can only become a shareholder of the company and he is eligible for the directorship of the company.

Foreign nationals or foreign corporate entities or NRIs are also allowed to be Directors or Shareholders of a Company with Foreign Direct Investment and having registration under Online Company Registration in Mumbai Maharashtra, this makes the private company as a preferred choice of foreign promoters. Another unique feature of a private limited company like limited liability protection to shareholders is the ability to raise equity funds.

The owner gets the protection of limited liability and Separate legal entity status and this makes Private Limited Company the most recommended type of business entity for Online Company Registration in Mumbai Maharashtra for millions of entrepreneurs who want to establish small and medium-sized businesses in Mumbai Maharashtra. Various legal firms, online legal service providers and advocates provide services relating to online company formation in Mumbai Maharashtra. They can also help you in private limited company registration in Mumbai Maharashtra, NIDHI company, One Person Company, a company under Online Company Registration in Mumbai Maharashtra, Producer Company, Mumbai Maharashtra subsidiary or any other kind of company registered in Mumbai Maharashtra. The average time it takes to complete the process of Online Company Formation in Mumbai Maharashtra is an about 10 – 15 working days, excluding government processing time and client document submission. We provide consultation to the young entrepreneurs who wanted to incorporate a pvt ltd company registration in Mumbai Maharashtra.

 

What is the difference between a Private Limited Company, LLP, OPC, Proprietorship, and Partnership ?

Selection of business entity is the first step and first legal decision taken by an Entrepreneur at the start of the business. The Companies Act 2013, introduced the concept of the Limited Liability Partnership, therefore now entrepreneur had more choices in selecting the business entity for their respective business. So, it is important for the Entrepreneur or Promoter to understand the advantages and disadvantages of each of the business entity and then choose the right business entity among the entities available for Online Company Registration in Mumbai Maharashtra. There are choices like Limited Liability Partnership, Private Limited Company, Partnership, Proprietorship and One Person Company,  a few are ideal for most Entrepreneurs. The comparison of the aforesaid entities is given below in the tabular form.

 

Table.1

Basis of Differentiation Proprietorship Partnership LLP Private Limited Company One Person Company
Registration No formal registration for Proprietorship is required Partnership can be registered or unregistered LLP needed to  be registered under the Limited Liability Partnership Act, 2008 with Ministry of Corporate affairs Private Limited Company require Online Company Registration in Mumbai Maharashtra One Person Company will be registered under the Online Company Registration in Mumbai Maharashtra
Legal Status of Entity Promoter is personally liable for the liabilities of the Proprietorship and Proprietorship is not recognized as a separate legal entity. Partner is personally liable for the liabilities of the Partnership and Partnership is not recognized as a separate legal entity The partners are not personally liable for the liability of the company and LLP is recognized as separate legal entity under The Companies Act, 2013 The private limited company has a separate legal entity, the Director or the Shareholder is not liable for the liabilities of the Private Limited Company The member of One Person Company is not liable for the liability of the company and One Person Company is recognized as separate legal entity.
Members liability Proprietor in the sole proprietorship has unlimited liability Partners have unlimited liability in partnership and partners are responsible for all the liabilities of the Partnership Unlike in Partnership, in Limited Liability Partnership the liability of the partner is limited to the extent of their capital contribution in the LLP. The liability of the member of the Private Limited Company is limited. The liability of the member of the One Person Company is Limited.
Minimum Number of Member In sole proprietorship there is only one member. Minimum two persons are required for incorporating a partnership. Minimum two person are required to incorporate LLP Minimum two persons are required to incorporate Private Limited Company under The Companies Act, 2013 Only one member is sufficient to incorporate One Person Company under The Companies Act, 2013
Foreign Ownership Foreign ownership is not allowed in Sole Proprietorship Foreign ownership is not allowed in Partnership Foreign ownership is allowed but with prior approval of Reserve Bank of Mumbai Maharashtra. Foreigners are allowed to invest in Private Limited Company through approval route in specified sectors. Nominee Director and Director cannot be foreigners.

 

Process of Private Limited Online Company Registration in Mumbai Maharashtra

A person can register its private limited company under new company registration in Mumbai Maharashtra by making an application to the Registrar of Companies in a place where the proposed registered office shall situate.

The following are the procedure and necessary guidelines and procedure prescribed by Online Company Registration in Mumbai Maharashtra Rules for registering a private limited company in Mumbai Maharashtra: –

  • According to Section 3 of The Companies Act, 2013 if the proposed name of the company is prohibited under any law in force then that name will not be registered under Online Company Registration in Mumbai Maharashtra as Company Name. The promoter must file e form- I A with the Ministry of Corporate Affairs to check the availability of name. This name of the Private Limited Company should end with the suffix “Pvt Ltd”. If the proposed name is rejected then the fresh application along with a new name is required to be filed with the the Ministry of Corporate Affairs (MCA).
  • According to Section 2(68) of The Companies Act, 2013 the minimum share capital of the Company is prescribed by the Online Company Registration in Mumbai Maharashtra Rules.
  • According to Section 2(68) of The Companies Act, 2013 a private limited company is required to have minimum 2 members (in case of One Person Company only one) and not more than 200 members.
  • It is compulsory for the promoters or directors of the Company that needs to be registered under Online Company Registration in Mumbai Maharashtra, to file the “Memorandum of Association” and  MoA shall include the following things:
  • Name clause which states the name of the company and company must include “Pvt. Ltd” at the end of its name for which online private limited company registration in Mumbai Maharashtra is required.
  • Object clause which states the object of the business and main business activities which will be done by the company that is applying for Online Company Registration in Mumbai Maharashtra through its normal course of business.
  • Registered office clause which prescribes the registered address of the company and from where the main business activities of the entity shall be carried out.
  • The capital clause prescribes the authorized capital of the company and also mentions the paid up capital of the company.
  • Any other information about the directors, promoters of the company which is applying for Online Company Registration in Mumbai Maharashtra for example address and identity proof of the directors and promoters of the company.
  • The Articles of Association include procedure and rules how a company shall carry its internal affairs and also include information about the power of the director and member of the company.
  • The agreement in regards to the appointment of the director of the company should also be submitted along with other documents.
  • The stamp duty which is prescribed by the Stamp Act is required to be paid on “Memorandum of Association” and “Articles of Association” by the promoter of the company.
  • If the Registrar of the Company is satisfied those conditions prescribed for the Online Company Registration in Mumbai Maharashtra in The Companies Act, 2013 is fulfilled then he will issue a certificate of Online Company Incorporation in Mumbai Maharashtra.
  • According to Section 2(68), a Private Limited Company is prohibited to make any kind of offer to the general public for the subscription of any kind of securities.

 

Major Reasons for Private Limited Online Company Registration in Mumbai Maharashtra

The Private Limited Company is the most common vehicle in Mumbai Maharashtra to carry out business for an entrepreneur. The most common reason for Online Company Registration in Mumbai Maharashtra for pvt ltd company are as follows:

  • Separate Legal Entity: – The literal meaning of the entity is something which has a real existence and a thing which has a distinct existence. An incorporated company is a legal entity and a juristic person in the eyes of the law. A juristic person means a person who is neither a natural person nor a human being. Hence a Private Limited Company form of organization which has legal capacity and capable of owning property and also incur debts on its own name. The shareholder and member of the company have no liability towards the creditors of a company for such debts. Therefore, the separate legal entity is one of the major reason behind Private Limited Online Company Registration in Mumbai Maharashtra.
  • Uninterrupted existence: – A private limited company having registration under Online Company Registration in Mumbai Maharashtra have ‘perpetual succession’, which means that the company, will continue to be in existence until it is legally dissolved by the operation of law. A Private Limited Company, being a separate legal person, is unaffected by the death of the member of the company or other types of removal of any member, a Private Limited Company continues to be in existence, change in the membership of the company does not affect the existence of the company. Perpetual succession of the company is one of the most important reasons for the Online Company Registration in Mumbai Maharashtra.
  • Limited Liability: – The liability of the member of the Private Limited Liability companies registered under Online Company Registration in Mumbai Maharashtra is limited. Unlike sole proprietorships and partnerships, in a limited liability company the liability of the members is limited in respect to the share held by them their personal assets will not sell in cases of default, because of the limited liability of member young entrepreneurs opted to go for the company form of organization and private limited company is best form of organization for their startups.  .
  • Free & Easy transferability of shares: – According to Section 44 of The Companies Act, 2013 shares and debentures are the movable property of the company transferable according to the article of the company. The transfer of the share is easy as compared to the transfer of an interest in a business run by a person as a sole proprietorship or a partnership. An entrepreneur if registered his company under Online Company Registration in Mumbai Maharashtra, then he can easily transfer its shares.
  • Owning Property: – A company having done Online Company Registration in Mumbai Maharashtra is a juristic person and the company can easily acquire, own, enjoy and alienate property in its own name. The shareholder of the company cannot make claims on the property owned by the company. The shareholder does not hold the property of the company and they are not the owner of the property of the company.
  • Capacity to sue and be sued: – The company having done Online Company Registration in Mumbai Maharashtra, is capable of initiating legal proceeding against any other person and another person can also bring suit against the company in the court of law. The company is a legal entity which can sue and can be sued by another person or entity.
  • Dual Relationship: – A company which is registered under Online Company Registration in Mumbai Maharashtra can form dual relationship with one person, for example, a person can be an employee of the company and at the same time owner of the company, a person can control the company at the same time work ad the employee of the company, so company is able to form a dual relationship with one single person.

Benefits of Pvt. Ltd. Online Company Registration in Mumbai Maharashtra

A private limited company registered under Online Company Registration in Mumbai Maharashtra is owned privately by some selected group of the member, the ownership of the private limited company is owned by the public. The private limited company enjoys various kinds of benefits some of the most common benefits of private limited companies are as follows-

  • Limited liabilities –The liability of the members of the private limited company which has done Online Company Registration in Mumbai Maharashtra is limited either on the basis of share or on the basis of guarantee, the private limited company has separate legal entity from its member. The literal meaning of Limited liabilities is when the liability of a member is limited and he does not have to spend their personal assets and property for the payment of the liabilities of the company.
  • A legal entity is separate – Another most important advantage of the Private Limited Company which is incorporated under Online Company Incorporation in Mumbai Maharashtra law is that the organization is different from its member both are different in eyes of law. Because of separate legal entity, the member of the organization would not be liable for the act of the company if member exercise due care and caution.  
  • Easy to Form and Easy to Raise Funds – The formation and incorporation procedure of the private limited company is very easy; as compared to the Online Company Formation in Mumbai Maharashtra of the public limited company where the process of formation and incorporation is a cumbersome task. A private limited company which is registered under Online Company Registration in Mumbai Maharashtra can borrow funds from the debentures as well as the shareholders through private placements, rights issue or through bonus issue. Banking and other financial organization provide loans to the private limited company on low rate of interest.
  • Several Tax advantages – A private limited company having done Online Company Registration in Mumbai Maharashtra enjoys more tax benefits under The Income Tax Act, 1961 in comparison to the public limited company. The government also gives a rebate to the private limited company in corporate taxes and provides various kind of tax special deduction.
  • Get several opportunities – The public sectors may not receive any special opportunities as compared to the private limited companies, for example the Private limited company which has done Online Company Registration in Mumbai Maharashtra are the only type of companies which are allowed to receive Foreign Direct Investment easily in comparison to other kinds of firm, other firms and sectors requires appropriate license and necessary  approval from the government and from the department of foreign investment, then only they can receive Foreign Direct Investment from the non-resident of India.

 

Documents required for Private Limited Online Company Registration in Mumbai Maharashtra

The entrepreneur should before going for the Online Company Registration in Mumbai Maharashtra prepare some mandatory documents. There are various kinds of documents which are necessary for Private Limited Online Company Registration in Mumbai Maharashtra. They are –

  • Directors – The list of documents which are required to be submitted by the proposed Director of the company in the process of Online Company Registration in Mumbai Maharashtra are as follows:

PAN Card: – Copy of the PAN Card of the proposed Directors of the Company is being required in the process of online company registration in Mumbai Maharashtra. PAN is a unique identification number which is issued by the Department of Income Tax in Mumbai Maharashtra. PAN is mandatory for Directors who are from Mumbai Maharashtra or Indian Nationals in the process of Online Private Limited Company Registration in Mumbai Maharashtra.

Address Proof: – Address proof copy is also required in addition to the PAN card copy the proposed Director must submit an address proof for Online Company Registration in Mumbai Maharashtra. The address proof must contain the name of the Director as mentioned in the PAN Card and the current address of the Proposed Director. The documents should also not be older than 2 months, documents like Passport, Election Card or Voter Identity Card, Ration Card, Driving License, Electricity Bill, Telephone Bill, Aadhaar Card are acceptable as address proof.

Residential Proof: – Proposed Director in addition to the address proof and PAN Card need to submit residential proof during the Online Company Incorporation in Mumbai Maharashtra and registration of the Private Limited Company to proof the current address of the Director. The residential proof of the proposed Director must also contain the name of the Director and must not be older than two months. The following documents which are acceptable as residential proof are as follows:

o Bank Statement

o Electricity Bill

o Telephone Bill

o Mobile Bill

Passport: – In case if the proposed director is a Foreign National, then he/she must submit the passport as an identity proof in addition to residential and address proof for the purpose of Online Company Registration in Mumbai Maharashtra. The Passport must also be Notarized or Apostilled in the country it was issued. If in case the document is in a foreign language, then the official translator must translate the foreign language in English and if the Passport does not contain the date of birth of the proposed director, then an additional document which contains the date of birth of the Director must be submitted.

  • Registered Office Proof

In addition to director address and residential proof, the proof of the registered office address of the Company which requires Online Company Registration in Mumbai Maharashtra also needs to be submitted by the company. The following documents can be submitted as residential office proof and these documents must be submitted as proof of registered office during the new company registration in Mumbai Maharashtra process or within 30 days of incorporation of the Private Limited Company.

  • The registered documents of the premises in the name of the company; OR
  • The notarized copy of lease or rent agreement in the name of the company accompanied with a copy of rent paid receipt which is not older than one month;
  • Shareholder Document (Indian National or Foreign National)

The identity and address proof of the shareholder who subscribes to the share of the company needed to be submitted by the company for the Online Company Registration in Mumbai Maharashtra.

  • Shareholder: – Corporate Entity or Artificial Judicial Person

If the shareholder or subscriber to the MOA and AOA is a Corporate Entity like a Company, LLP, etc, then Certificate of Incorporation of the subscribed Body Corporate must be attached along with other necessary documents for the Online Company Registration in Mumbai Maharashtra.

In addition to the above proofs and documents, a number of documents like INC-9, MOA, AOA would be drafted by a Professional. These legal documents made specifically for the Online Company Registration in Mumbai Maharashtra must be signed and notarized by the promoters of the Company.

 

Various Advantages of Online Company Registration in Mumbai Maharashtra

The Companies Act, 2013, The Income Tax Act, 1961, Central Government and various other laws and scheme provides various kinds of advantages to the company which has done Online Company Incorporation in Mumbai Maharashtra. These advantages are as follows: –

  • Creates a Separate Legal Entity: – A company is independent and separate from its members, employee or director of the company and the members cannot be held liable for the liabilities of the company if the company has done Online Company Registration in Mumbai Maharashtra. In Salomon v Salomon & Co. Ltd. (1897) AC 22, it was held by the House of Lord that, if a company is duly incorporated, then it becomes an independent person and possess its own rights and liabilities thus the member of the company cannot be held liable for the Act of the Company.
  • The company has Perpetual Succession: – The literal meaning of the perpetual succession is continuous existence; hence if the company has done Online Company Registration in Mumbai Maharashtra then the company never dies, if the member dies then also company will not die. The member of a company may change from time to time, but this will not affect the existence of the company. The company can only come to an end when it is wound up according to law, currently Insolvency and Bankruptcy Code and Companies Act, 2013 govern the procedure of winding up of the company.  In  Re Noel Tedman Holdings Pty Ltd (1967) Qd R 56 it was held by the court that a company’s members may die and the new member may subscribe but it will not affect the legal existence of the company which has gone through the process of Online Company Incorporation in Mumbai Maharashtra.
  • Can own Separate Property: – As earlier discussed, a company is a separate legal entity in the eyes of law only if it has completed the process of Online Company Registration in Mumbai Maharashtra, so it can hold property in its own name and because of separate legal entity, members cannot claim ownership over the property of the company. In Bacha F. Guzdar v CIT Bombay it was stated by the Supreme Court of Mumbai Maharashtra that a company is a legal person, therefore all its property is vested in the company and a member cannot control, manage or dispose the property on its own name. In Macaura v. Northern Assurance Co. Ltd., it was held by the court that a shareholder of a timber company, even if holds a substantial amount of shares in the company even then also the property or timber of the timber company will not belong to the shareholder of the company.
  • Capacity to sue and be sued: – The Company having done Online Company Registration in Mumbai Maharashtra has the ability to sue an individual or being sued by another individual in its own name. A company, though can be sued or sue in its own name, but it has to be represented by a natural person and if any complaint which is not represented by a natural person then that complain would be liable to be rejected in the same manner in which an individual complaint is liable to be dismissed in the absence of the complainant. So representation of the company in a court of law would be done by a natural person.
  • Easier access to Capital: – Raising capital is easier for an incorporated company because a company which has done Online Company Registration in Mumbai Maharashtra can issue securities through private placement, public issue, rights issue or through bonus issue under section 23 of the Companies Act, 2013. This process is easier for the business to grow, develop and expand the horizon of the business. Bank and other financial institutions also lend money to the incorporated company this may be another reason for the Online Company Incorporation in Mumbai Maharashtra.
  • Business Longevity: – After you incorporate your business entity under Online Company Registration in Mumbai Maharashtra, you create a distinct legal entity under section 9 of the Companies Act, 2013 separate from yourself. This is not the case with any other legal form of business entity. In a proprietorship, if the proprietor dies, then the business of proprietor also dies along with him. Hence incorporated company had a separate legal entity; death of the member of the company will not affect the longevity of the business. The owner of the company can form a succession plan for their heirs in the the the future, or they may sell the company altogether. This means the company created by you and have Online Company Registration in Mumbai Maharashtra certificate can live on beyond you and last for decades, centuries or even more in some situation. Most successful companies in the world have separate legal entity from its founder and because of this company can grow beyond the lifetime of the Promoter. 
  • Limited Liability: – After Online Company Registration in Mumbai Maharashtra, you create a separate legal entity for the business under section 9 of The Companies Act, 2013, therefore you will enjoy the benefit of separate legal entity and you are not liable to pay the debts of the company, your liability towards the the the company is limited. So a director or shareholder of the incorporated company, in most of the situation is not personally liable for the company debts or obligations towards the third party. If the corporation is sued or goes bankrupt, the business’s assets will be at stake, not the personal assets of the company. You may lose your investment in the company, but you are not responsible for any other amounts that company owes if the company has completed all the process of Online Company Formation in Mumbai Maharashtra.
  • Lower Tax Rate: – If you are the owner of the non-incorporated entity then if you earn profit through that non-incorporated entity such as sole proprietorship, you are liable to pay tax at a high rate. However, Online Company Registration in Mumbai Maharashtra offers you the benefit of paying a lower tax rate on the income earned in the previous financial year, The Income Tax, 1961 give special exemption and deduction to the incorporated entity. This is one reason why incorporation can be a pivotal aspect of a profit strategy.
  • Mobilization of Resources – The participation on the company is higher in comparison to other form legal entities, a large number of people and capital can be easily collected with the help of the incorporated company. So if a person wants huge investment and man powers he can go for the company registration in Mumbai Maharashtra.
  • Infinite Membership – In the public limited company having done Online Company Registration in Mumbai Maharashtra, there is no limit of the membership, so if a person does Online Company Incorporation in Mumbai Maharashtra of a Public Limited Company, he can add as many members. Thereby, a large number of people including juridical entities can combine and contribute in the functioning of the entity.

 

FAQ’s about Private Limited Online Company Registration in Mumbai Maharashtra

Q 1.  What is the meaning of the Private Limited Company and why it requires Online Company Registration in Mumbai Maharashtra?

The most important question in the FAQ on the private limited company is what is the meaning of private limited company and where the meaning of private limited company is defined? A private limited Company is defined under section 2(68) of The Companies Act, 2013 according to this section private limited company restricts the maximum number of the members to 200 through its article. An entrepreneur can start a private limited company with just two members only and in case of One Person Company, he can register his business with just one member only. Private Limited Companies has a separate legal entity and have perpetual succession, with limited liability of its member-only up to the unpaid share of capital. A shareholder is not personally liable for the liabilities of the company and its personal assets won’t be used to pay off the debt of the company.

Q 2. What are the essential statutory and primary requirements for Private Limited Online Company Registration in Mumbai Maharashtra?

The statutory and primary requirement for the incorporation of a private limited company in Mumbai Maharashtra, are as follows:

  • Minimum of Two Directors and Two Shareholders are required (The shareholder can also become Directors). The highest permitted number of shareholders in a Private Limited Company in Mumbai Maharashtra has been increased to 200 (from 50) under the new Indian Companies Act, 2013.
  • No governmental recommendation required in regards to the Minimum Paid-up Share Capital for incorporation of a Private Limited Company in Mumbai Maharashtra, as per the new Companies (Amendment) Act, 2015. The mandatory requirement of the certificate for business commencement has also been abolished by the Companies (Amendment) Act, 2015.
  • Copy of the PAN Cards of the Directors/Shareholders in they are Indian Nationals and a copy of Passport in they are Foreign Nationals.
  • Director Identification Numbers (DIN) and Digital Signature Certificates (DSC) of the Directors are also required for the company incorporation and registration in Mumbai Maharashtra.
  • Copy of the Identity Proof and Address Proof of all Directors are required for the incorporation of the company.
  • Address Proof of the registered office along with the no objection certificate from the landlord in case of rented land shall be submitted along with other documents for the Online Company Registration in Mumbai Maharashtra.  

Q 3. What is the common Procedure of a Private Limited Online Company Registration in Mumbai Maharashtra under The Companies Act, 2013?

When DSC and DIN are allotted to the directors of the company, the next task for the promoter of the company is ensuring the availability of the proposed name for the private limited company; the promoter can apply for the name of the company through Form INC-1 filing. Then the promoter has to draft appropriate documents like the Memorandum of Association (MOA) and Articles of Association (AOA) of the company. And, finally, in the last stage Form INC-29 will be filed with the concerned ROC for incorporation of the company, together with all required necessary documents.

Q 4. What is the approximate time period for a Private Limited Online Company Registration in Mumbai Maharashtra?

Based on the various requirements of the diverse requisite documents like address proof and identity proof, which is submitted by the directors and shareholders of the company, the speed and time limit of the filing and processing forms, necessary documents, and time taken by the concerned officers or government officers in the proceedings, the approximate time of the entire procedure for the incorporation of the private limited company in Mumbai Maharashtra is about in range between One to Two Weeks.

Q 5. If a Small Business entrepreneur registers its business through Private Limited Company Registration in Mumbai Maharashtra, does he will get any kind of benefit for the same ?

Yes, if a small business entrepreneur gets their business register under private limited online company incorporation in Mumbai Maharashtra they will get various kinds of advantages and benefits under the Companies Act, 2013. Registration of business entity through private limited provide small business entity with credibility and an image for their business in the eye of the banks, financial institution, suppliers and other potential clients. Registration through private limited helps the business entity to get the loans at little compliance from banks or from other financial institution.

Q 6. Whether Online Company Registration in Mumbai Maharashtra of a Private Limited Company is Suitable for making or receiving FDI in Mumbai Maharashtra?

Yes, the Online Company Formation in Mumbai Maharashtra of Private Limited Company is perfectly suitable for the making and receiving FDI in Mumbai Maharashtra. The private limited companies are a hugely popular form of business entity among foreign investors for making the direct foreign investment but these investments are subject to the FDI policy and RBI regulations. In Mumbai Maharashtra, the most common way for foreign direct investment is the incorporation of the wholly-owned subsidiary company or joint venture with an already established company in Mumbai Maharashtra.  

Q 7.  What are the different forms that are required for Private Limited Online Company Registration in Mumbai Maharashtra according to The Companies Act, 2013?

For the Private Limited Online Company Incorporation in Mumbai Maharashtra, an e- MoA (INC-33) and e- AoA (INC- 34) is to be submitted by the promoter of the company, The Ministry of Corporate Affairs recently introduced a new form which is SPICe INC- 32 form, through this form promoter can quickly register and incorporate its company.

Q 8.  What do you mean by the registered office address of the company?

The registered office is the official address of the Private Limited Company for which Online Company Incorporation in Mumbai Maharashtra has been done, the Registered office does not only mean to be owned only a premises which is rented can also be registered as registered address of the company. The general meeting of the company is holding on the registered office of the company, registered office is also used for the purpose of receiving correspondence and keeping records of the all necessary documents. All government official form various statutory body met company official at the registered office.  Registered office address is also helpful in determining the jurisdiction of the registered office.

Q 9.  What do you mean by Director Identification number (DIN)?

If you wanted to become the director of the company then you must apply for the Director Identification Number (DIN). From now onwards there is no special form required, you can apply for the director identification number through SPIC form no other special form is required. The identity proof and address proof also need to be submitted along with the requisite prescribed fee. The approval procedure usually takes 3 to 4 days but once you get the Director Identification Number it can be used for the lifetime.

Q 10. What are the eligibility criteria for the shareholder or Director for the appointment in the Private Limited Company under The Companies Act, 2013?

Under Companies Act, 2013 no professional or educational qualification is required is specified for a shareholder in the private limited company any person or individual can become shareholder or the director of the company but person should be of sound mind, major of age and must be a citizen or resident of Mumbai Maharashtra, then only he can become shareholder or director of the Private Limited Company, if Online Company Registration in Mumbai Maharashtra has been done for the same.

 

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