A company is a form of business organization that is set up under the law. In India, the companies come under the Companies Act 2013. The act identifies two main categories of the companies "Public companies and private companies".
A Private company is a company that is owned and managed by a small group of persons and mostly by their private funds. Section 2(68) of the act defines a private company, " private company" means a company having a minimum paid-up share capital as may be prescribed, and which by its articles
The act states that a Private company has to mention the word Private limited or in short PVT LTD in their name for their identification as a Private company. And differentiate it from other types of companies.
A company form of organization enjoys a better image than a sole proprietor type of business organization for the reason it is registered under the law.
The main benefits of a company are:
Investors and banks are more likely to provide funds as compared to the sole proprietor business. The company form of business enhances the level of business operations.
The law grants certain relaxations to the private company to encourage investment and business in the economy. These relaxations provide freedom of operations to the company. Some examples of these relaxations are:
The process of registration of a private company is very simple and completely online. The person desiring to register his company can get his company registered through the Ministry of Corporate Affairs portal. That is www.mca.gov.in. A company is needed to be registered with the registrar of companies (ROC). ROC keeps all the records regarding all the companies in India.
There are certain requirements for registering a company. These are:
Registering a company is a simple process but it requires professional guidance. We at Companify helps you to take a step forward in owning your company by providing you a hassle-free process of company registration. Our team of experts will guide you at each step so that you can make the right decision as per your need. We have different company registration packages as per your requirements.
© Copyright Companify 2022. All Rights Reserved