Incorporation Services in India
At taxsavo, we have experts who can help you to find out which type of entity is best for you business.
Choosing best form of business as important as the execution of the idea. If your idea needs funding then Proprietorship, OPC and partnership cannot not give the right plough back what your business needs. So, before choosing, look over all the aspects that can affect your decision of starting a business.
Key facts to consider while choosing
- Legal Existence:
For a startup it is best to first consider whether he wants to start business under a legal entity or under his own name.
- No. of persons Involved:
The second key fact for choosing a right form depends upon the no. of persons involved in the initial stage of startup.
- Capital requirement:
Choosing a right form also depends upon the initial capital eligibility and future funds availability.
- Funding requirements:
If in near future, funding is required in the startup, then it has to be planned in the initial stage of business.
- Restriction on Personal Liability
It has to be decided in the initial stage whether the key persons is liable personally or there should be restriction.
How long will it take to incorporate a company?
It will take around 12-15 days to get a company incorporated provided all the documents required are provided in time.
What are the payment terms?
As we said, we believe in 100% transparency and 100% authenticity. The client has to pay the professional fees after the incorporation. And regarding government fees, he/she has to pay after receiving the government fees acknowledgment by Ministry of Corporate Affairs.
If a client feels inconvenient about installments payments, he/she can pay 50% in advance and 50 % after completion.
What regulatory requirements are placed on private limited company?
As private limited companies are not traded publicly, regulatory requirements placed on them are fewer than on public companies. For example, they need not disclose their books of accounts.
Because of this advantage, they need only worry about the long term rather than face the music from their shareholders in case their results in a particular quarter are poor.
What is the procedure to register one?
Initially, we help you get a digital signature certificate (also known as DSC), which is nothing but an e-signature to help you complete the registration online. It usually takes two days to get the DSC from the time you submit the documents. Next, we apply for the Director Identification Number (also called a DIN). This typically takes one day. The third phase involves selection of a name for your company. Now, do remember that your company name need not be your brand name.
For example, paytm.com has been incorporated as One97 Communications Limited. Once done, we will prepare the Memorandum and Articles of Association and apply for the Certificate of Incorporation.
Will I get the government fees receipt?
Absolutely, you will get all the payment receipt of stamp duty and forms fees paid by us to Registrar of Companies. We promise you 100 % transparency as mentioned.
Why do startups prefer private limited companies?
Startups set-up private limited companies so that they can raise venture capital funding and offer their best employees stock options. Without funding and stock options, it’s almost impossible to build and scale a large business. Banks and other lenders would also much rather lend to private limited companies, as compared to sole proprietors.
How many shareholders can there be in a private limited company?
A private limited company must have at least two directors and shareholders, and can have a maximum of 15 directors and 200 shareholders.