Advantages of Company Registration in Mumbai

by Enterslice ITES Pvt. Ltd. Start and Manage Business

In Mumbai If you wish to start a business by opening up a company, then for registration of company approval from the central or Maharashtra state government or BMC in Mumbai is required. Opening a private company is the most suitable option for a long-term growth. A private company must have 2 minimum directors and 2 shareholders they can be the same persons also, it must have a minimum paid up capital of 1 lacs, the maximum members it can have is 200. Mumbai is the city of media, entrepreneurship.

Note that at present no such minimum paid up capital requirement is required; however, in practice usually the private company is opened with a minimum 1 lac paid up capital.

What Are the Advantages of Company Registration in India

1. Limited Liability of The Company: The personal assets of shareholders/owners cannot be seized by the creditors/ or such other person having such right even when the company is suffering the financial distress.

2. Right to Have Property: A company being a legal person, can acquire, own, enjoy and alienate property in its own name. The shareholder/director cannot claim the property of the company so long as the company is a going concern.

3. Separate Legal Entity: A company is a legal entity incorporated under the Companies Act 2013. Therefore a company can buy, hold, sell a property in its own Capacity Company also enjoys the right to incur debts and at the same time, the members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts.

4. Continuity of Existence: The members of a company may come, change and go but the company will continue to run until it is legally dissolved/ wind up. A company is a separate legal entity, therefore, is unaffected by the death of any member but continues to be in existence irrespective of the changes in membership.

5. Minimum Shareholders: The Minimum Members to start the business are two (2).

6. Raising Of Fund: Company can raise funds through the issuance of shares, debentures. Hence banking and financial institutions easily lend financial assistance to a company in comparison to partnership firms or proprietary concerns.

7. Legal Right: The Company being a legal person enjoys the rights of a natural person such as it can bring a suit in a court of law and also can be sued in its own name.

8. Multiple Status of persons in the company: In a company, a person can hold multiple statuses say he/she can be a shareholder, creditor, director and also an employee of the company at the same time.

9. Transferability: The transfer of shares by a shareholder to any other person can be done easily through a share transfer form at any price mutually agreed between both.

To Register A Company in Mumbai, Follow The Given Below Steps:

Get a unique name for your company; hence apply for name approval by clicking on RUN (Unique) application available on MCA portal.
Proposed (Maximum 2 Names as per preference)
Pay fees of Rs 1000/-.
Obtain DSC (Digital Signature Certificate) for the company for attaching a signature to documents.
Prepare all the documents to be prepared as per the attachment list is given in help kit along with SPICe form.

Following are the general documents required for attachment:

INC-9Affidavit/ declaration by first subscriber(s) and director(s) (on duly authorized Stamp Papers).
DIR-2 declaration from first Directors along with Copy of Proof of Identity and residential address.
Proofs of Office address (Conveyance/ Lease deed!/ Rent Agreement etc. along with rent receipts); and NOC from the owner of the property
Copy of the utility bills (not older than two months)

6. Fill the application form SPICe after downloading from MCA site. Details required like

a. Subscriber details:- Maximum 7. However in the case of more than 7 directors physical signed copy of MOA and AOA.

b. Directors details:- Maximum 20.

c. DIN application:- Maximum 3.

7. With the use of this single form SPICe, you can apply DIN for Directors, PAN and TAN for the company.

Note: DIN application for Directors -Maximum 3 Directors can be applied.

Note:

That the fees of Rs 1000/- are valid for only one time only, irrespective of approval or rejection.
Reserved name shall be valid for 20 days from the date of approval of Name.
Reserved name shall be valid for 60 days in case of allotment of a name for existing Company (Change of Name).

How to prepare MOA and AOA and how to apply for PAN & TAN application?

8. For MOA and AOA: Fill form Spice 32 and Spice 33 respectively. Fill all the information in the forms as per requirement of Table A to J of Schedule I. Affix DSC of Subscriber.

9. For PAN and TAN inking find out of Area Code to file PAN & TAN are given in Help Kit of SPICE Form. PAN/TAN will be generated with the incorporation Registration.

The application for company registration in Mumbai will be scrutinized by the registrar in Mumbai and basis which either approval message will reach to you through email or notice will be served for queries found, if any.

Source by: https://medium.com/@enterslice44/advantages-of-company-registration-in-mumbai-80f6e9e03ec6