They say the “personal” should be separated from the “professional.” If you agree with this, you should look into the registration of limited company when starting a business.
A limited company provides the shareholders a veil of protection from having to absorb too much liabilities. This structure makes sure that the debts of the stakeholders are only limited to the percentage of their ownership, shielding their personal assets from being used as settlement for any financial obligations.
The limited liability aspect of this company structure is appealing to investors. With this in place, more are willing to take risks and bet their money on the business.
How To Create Your Limited Company
India is a booming investment hub that even foreign investors set up their businesses here. Apart from competitive and business-friendly laws, registration of limited company—or any company, for that matter—is quick and easy with the help of technology.
Identify The Company Structure And Name.
For this discussion, we have settled that the company structure is limited. You need to identify the nature of the business after.
Next, secure a unique name of your company with the regulator. Make sure that your chosen name has no existing trademark yet.
Secure Digital Signature Certificate.
Digital signature, to simply put it, is a signature in digital form. It is placed on documents to confirm authenticity. The digital signatures of the company directors are needed in many documents relating to company registration.
Draft, Notarize And File Your Registration Documents.
Prepare the articles of association, memorandum of association and other relevant documents summarizing the by-laws and explaining the company’s nature of business. Lawyers and other experts on the field should finalize these.
After drafting and approving these documents, the directors and shareholders should sign them in the presence of an attorney or counselor. These should then be notarized after.
Next, file these documents, along with a tax registration application, with the regulators.
Receive Your Certificate Of Incorporation.
After the regulator approved your application, you will receive a certificate of incorporation. It is a legal document proving the formation of your company.
What Are The Other Benefits?
Apart from limited liability, a limited company can also benefit from the following:
- A limited company is a separate legal entity from its stakeholders.
- It can have its own assets and keep profits.
- A limited company has the capacity to enter into contracts.
After considering all the matters discussed, are you now ready for your registration of limited company? Take the leap.