The Private Limited Company is regarded as one of the most well-known legal entities among small, medium, and large enterprises in India because of its various benefits. The city of Mumbai is a strange, exciting, and ambitious city, starting a business or company here will lead to great progress and profit.
The Private Limited Company requires at least two members and no more than two hundred members. It is a small private business, where the owner's debt is limited to their shares, the company is limited to having 200 or fewer shareholders, and the shares are prohibited from being traded publicly. The shareholder of a limited private company has limited liability to lenders, limited only to the unpaid share price. Start-ups and businesses are opting to register as Private Limited Companies as these organizations must hold board meetings and file annual returns with the Ministry of Corporate Affairs (MCA), they are often viewed more honestly than Sole Proprietorship or the General Partnership.
MINIMUM REQUIREMENTS OF A PRIVATE LIMITED COMPANY REGISTRATION IN MUMBAI
Minimum two Shareholders / Directors
One director has to be an Indian citizen
The minimum amount of two Rs.
DIN & DSCs for all Directors / Shareholders
ADVANTAGES OF THE REGISTRATION
Discrete legal business:
Once a company is registered, it is known as a Discrete legal entity and the obligation of each member or shareholder is limited to a fixed amount of shares. It means that if a company is facing a loss under any circumstances, shareholders are not obliged to sell their assets for payment. Therefore, the private, individual assets of shareholders are not at risk.
Easy to manage, register & use:
Limited Companies can be fully registered online with small paperwork. The registration process may be completed within 7-12 days. Also, it offers flexibility in functioning such as adding new directors, allocating new shares, ESOPs, and various other features.
Least capital not needed:
A minimum requirement of Rs. 1 lakh for private companies has been completed. So now, a company can be established even for a small amount of money (Ex. Rs. 2000)
Effortless division of management & ownership:
Businesses that will need financial support from adventure capitalists (VCs), angel investors, etc. need to register as limited private companies. Because limited private companies can make them shareholders & give them a seat on the board of directors, LLP will require investors to be partners and OPCs will not be able to accommodate additional shareholders.
Easy dissolution process:
The Private Limited Company structure provides an opportunity for an immediate exit from those companies that have no assets or liabilities remaining and who wish to close business operations due to certain unusual circumstances.
A popular option for Banks, VCs & investors:
As limited corporate audits are audited annually, most banks, VCs, and investors prefer this more than other common types of business.
STEPS TO BE PURSUED FOR REGISTRATION
Name Authorization Application:
The applicant must provide 2 different names & key company names that will be submitted to the MCA for approval, of which only one name will be approved. The names provided should be unique and suggest a company business, they should end with the word “Private Limited”.
Digital Signature Certificate (DSC)Application:
Once the name is used, we will use the Digital Signature Certificate (DSC) of shareholders and directors to sign the forms digitally. Once the directors/shareholders already have the DSC, this step can be skipped.
Final submission of SPICE + forms with AOA & MOA:
Once the name has been approved and DSC did, we need to prepare and submit the application for the SPICE + and Memorandum of Association (MOA) forms, Articles of Association (AOA), and the AGILE form for final approval.
Incorporation Documents to be attained:
It usually takes 3-5 days after the final submission to receive the installation certificate. A support certificate is a proof that the company is registered. PAN, TAN, ESIC, EPFO, and Professional Tax Registration Certificate will be issued simultaneously.
Bank Account Opening:
The applicant can submit a certificate of Incorporation, MOA, AOA, PAN, TAN, and other required bank documents to open a current account and start a business.
DOCUMENTS NEEDED
(A) Documents that need to be submitted by directors and shareholders must be valid & readable. These are as follows:
PAN card Scanned copy
Aadhaar card / voter ID / passport / driver's license Scanned copy
Recent Bank Statement / Telephone Bill / Mobile Billing Payment Scanned copy
Passport-sized photo
(B) If you are a foreigner or an NRI Director/ Shareholder, such list of documents can be shown-
Proof of Registered Office
The Private Limited Company must have a registered office space in India. Proof of address should be latest (not more than 2 months). The list of documents required is as follows-
Scanned copy of electricity bill / Mobile Post-paid bill / Landline Post-paid bill / Gas bill.
Scanned copy of the No-Objection Certificate from the owner of the property or whose name is written in that service bill.
CONCLUSION
Hence it can be concluded that the city of Mumbai, also known as Bombay is the capital of the Indian state of Maharashtra. Mumbai is the most populous city in India with an estimated population of 12.4 million. It is also known as India's financial, commercial, and entertainment capital. The country's most important box office is the Jawaharlal Nehru Trust Port (JNTP) located in Mumbai. Mumbai is a strange, exciting, and ambitious city, starting a business or company here will lead to great progress and profit. Mumbai could be the best place to start your business. If you want to build a business in India, Mumbai is a place you should consider very important in order to excel in the field you wish to pursue your business.
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