Private Limited Company Registration in Madhya Pradesh
Private limited company registration is a legal process that establishes a distinct legal entity separate from its owners, often referred to as shareholders. When a company opens, it has many steps. One of those steps is the registration of a Pvt. Ltd. company. An association or partnership company with more than a hundred people for any enterprise ought to be registered as a company. When a company is registered with the government, it becomes a separate legal entity, which provides some protection to the shareholders of the company.
Documents required for Private Limited Company Registration In Madhya Pradesh
Before registering a company with the government, certain information is very necessary. First of all, Start by selecting a unique company name and appointing at least two directors and shareholders. The main documents are –
- PAN
- Govt ID proof – Voters’ ID or passport or driver’s license
- Bank statement
- Utility bills either mobile or gas or electricity
- Passport size photograph
Advantages of Private Limited Company Registration in Madhya Pradesh
Credibility and Trust: Once a company is registered with the government, a place of trust is created for that company.
Tax Benefits: Tax benefits are advantages or incentives that the government offers to people, companies, or particular activities in the form of lower tax obligations or exemptions.
Brand Protection: Registering your company in the government’s register provides many legal benefits and protection.
Business Expansion: Registration makes it easier for businesses to grow, enabling them to operate in several areas or nations, create multiple branches, and raise funding through the issues of shares.
Legal Recognition: Registration establishes the company as a legal entity, distinct from its owners. This recognition is essential for entering contracts, owning assets, and engaging in legal transactions.
Business Contracts: After the opening of the company, all its conditions, rules of procedure, and management are registered with the government.
Disadvantages of Private Limited Company Registration in Madhya Pradesh
Compliances: A company has to mandatorily maintain many types of compliance, irrespective of business turnover or activity. For this reason, operating a company requires the least recurring cost each year.
Restrictions on Ownership: Private limited companies have many restrictions on share transfer such as one shareholder cannot transfer any share without taking permission from another shareholder.
Disclosure of Information: Private limited companies are required to tell regulatory authorities about their company’s financial and management information, but this may not be the case if you want to keep this information private.
Limited stock exchange access: Another disadvantage of Private Limited Company registration is limited access to stock exchanges, as most shareholders are restricted, and they cannot share their offers with the public.
Complicated accounts: It becomes very difficult to manage your company and maintain the records related to expenses and finances because the private limited company is very complicated compared to the normal company.
What is the Time required to register a Private Limited Company?
The minimum time required to register a private limited company can vary depending on a number of factors, including the competence of the regulatory authorities, the completeness of your documents, and the particular jurisdiction in which you are registering. In some cases, it is possible to expedite the registration process, but even with expedited processing, it usually takes several weeks to complete. Here is a rough estimate of the minimum time required:
Name Approval: The name approval process usually takes 1-2 business days if the name conforms to the guidelines and there are no objections.
Incorporation Application: Once your name is approved, you can file the application for incorporation, which can be processed in about 7-10 business days with expedited processing, provided all documentation is in order.
Digital Signature Certificate (DSC) and Director Identification Number (DIN): Getting DSC and DIN for directors and customers may take a few days to a week depending on the authorities’ processing time.
Filing of Incorporation Documents: After getting the DSC and DIN, you need to prepare and file the incorporation documents. With expedited processing, this step can take approximately 7-10 business days, assuming all documents are in order.
Certificate of Incorporation: The Registrar of Companies (RoC) can issue a Certificate of Incorporation within 7-10 working days if all documents are in order and expedited processing is available.
Please note that these are minimum estimated timeframes, and actual processing times may vary based on various factors, including the jurisdiction and workload of the local RoC office. Additionally, expedited processing may not be available in all areas or for all types of companies. It is important to consult with Vidha Corporate to register your specific jurisdiction to understand the exact timeframe and options available to expedite the process.