Formation of Private Limited Company

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Company is an artificial person created under the Indian Companies’ Act,2013. There are various types of companies which include Private Limited Company, Public Limited Company, One Person Company (OPC) and Section 8 Company i.e. Not for Profit Company.

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Introduction

Company form of business can be understood as an association of persons formed for the purpose of carrying on some business or undertaking. A company is a body corporate having separate legal identity having status separate from members constituting it.

Why choose Company form of Organisation?

As you know that the sole proprietorship and partnership forms of organisation could not meet the growing needs of huge capital and managerial skills required for increased scale of business and growing economic activities. The liability of owner/owners of these organisations is unlimited. In order to overcome these problems a new form of business organisation known as company came into existence.

-Artificial legal person

A company is an artificial person as it is created by law. It has almost all the rights and powers of a natural person. It can enter into contract. It can sue in its own name and can be sued.

·Perpetual existence

A company has an independent and separate existence distinct from its shareholders. Changes in its membership due to death, insolvency etc. does not affect its existence and its continuity

·Limited Liability

The liability of the shareholders of a company is limited to the extent of face value of shares held by them. No shareholder can be called upon to pay more than the face value of the shares held by them. At the most the shareholders may be asked to pay the unpaid value of shares.

· Transferability of shares:

The shares of the company are easily transferable. The shares can be bought and sold in the stock market.

 Only when the Company is properly constituted under the Act and the certificate of Incorporation has being obtained from the Registrar of Companies, it can be duly registered. The following are the basic details needed for formation of Company.

  • -Details of all Directors like Name, address, occupation etc.
  • -PAN and aadhaar details of all the Directors
  • -Address proof of place of business
  • -Business Objective of the Company
  • -Unique business name of the Company
  • -Capital contribution for starting company

We at ITATOrders.in ensure that a dedicated “Legal Partner” is assigned to you and you shall be given a Task link via meraoffice.in. All you need to do is upload the relevant details and documents through the task link and our Legal Partner shall be a one stop point of contact for all your queries and deliverables.

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