According to a survey published by digital media platform Inc 42 in collaboration with Kerala, Kerala has emerged as one of the country’s top start-up hotspots. Kerala is a stunning Indian state noted for its laid-back lifestyle and natural beauty. Since 2012, the state has grown at a compound annual rate of 17%, bringing the total number of enterprises located in the state to 2,200 and demonstrating significant netting fund capability. The administration has taken a series of efforts to assist investors, and the state has traditionally welcomed visitors. According to a credible source, Kerala, with its palm-lined shoreline, undulating coffee plantations, and beautiful Arabian Sea views, has made it to the top 20 global trending destinations for 2020. Every Private Limited Company Registration is necessary, to keep it safe from penalties and fines. In this article, we will discuss Private Limited Company Registration in Kerala.
Basic Requirements for Private Company Registration in Kerala
- A minimum of two shareholders is necessary to form a Private Company under the Companies Act of 2013, however, the maximum number of members in a Private Company is 200. If a private limited business faces financial difficulties, the shareholders should be held to a lower level of responsibility because they are not required to liquidate their assets to help the firm.
- Toto registers a corporation online, at least two directors must be selected, with a maximum of 15 directors allowed. Additionally, the prospective director must be at least 18 years old. In Kerala, any foreigner can become a director of a private limited business.
- The registration of a Private Limited Company does not need a minimum paid-up capital. Every Private Limited Company, on the other hand, shall conclude its name with “Pvt. Ltd.”
- The name of the private limited company should be distinct from that of any other registered firm or brand. Before registering your planned firm, it is preferable to avoid any objectionable names.
Advantages of registering a Private Limited Company in Kerala
Following are the advantages of the Private Limited Company Registration in Kerala-
- A Private Limited Company is an artificial Judicial Person created by the Companies Act, according to the law. The Directors and Shareholders of a Kerala-registered company are different legal entities. As a result, a Private Limited Company in Kerala has a broad legal scope.
- Firm Registration in Kerala is valid for as long as the company is in operation. The term “perpetual succession” refers to a company’s continued existence until it is dissolved or wound up. As a result, the death or departure of any of a Company’s members has no effect on the Company.
- The company’s members are only liable for a limited number of debts. It’s just restricted to the face value of the stock they bought.
- The number of shares owned by the shareholders determines the ownership of a Private Limited Company. A company’s shares can be transferred to another individual or a legal organization incorporated in Mumbai. The Company’s Articles of Association and the Shareholders Agreement control the transfer of shares once again. One of the reasons why entrepreneurs choose to form a corporation is the ease with which they can transfer their shares.
- Any sort of tangible or intangible asset can be acquired, owned, or transferred by a company incorporated in Kerala. Because shareholders are not the company’s owners, they are not eligible to claim the company’s assets. A shareholder is a person who has an interest in a business that arises as a result of the AOA.
- A Kerala-based company can assist promoters in raising equity capital from angel investors, private equity companies, and the stock exchange.
Following are the documents required for the Private Limited Company Registration in Kerala-
- PAN Card; Government Identity Proof (Aadhar Card, Voter ID, or Driver’s License)
- Most Recent Bank Statement
- Utility bills from the last several months, such as power, mobile phone, or gas bills
- Photographs in passport size
- All parties must sign an affidavit on stamp paper.
- On a blank document, the Director of the Company signs his name.
Documents to be submitted by the Directors and Shareholders (NRIs) of the Company:
- Latest Bank Statement;
- Latest utility bills (not older than 2 months);
- Passport size photographs;
- Latest Bank Statement
- Latest utility bills (not older than 2 months)
- Latest Bank Statement;
Proof of the Registered Office:
- If the office is owned by a Company Director or Shareholder, the most recent electricity, gas, or mobile bill in the Director’s or Shareholder’s name is required
- In the case of owned property, a Sale Deed is also required
- In the case of rented premises or offices, a No Objection Certificate from the property owner is required, as well as a notarized Rental Agreement in English.
Procedure for Private Limited Company Registration in Kerala
Follow the steps given below to get Private Limited Company Registration in Kerala-
Step 1: Obtain a Digital Signature Certificate (DSC): Before forming a Private Limited Company in India, you must first obtain a Digital Signature Certificate (DSC). As you may be aware, the registration procedure is fully online, and online forms necessitate the use of a digital signature. That’s why you’ll need a Digital Signature Certificate (DSC). Biz advisor can provide you with your DSC in just a few days.
Step 2: Complete the SPICe+ Form: This form is used to issue DINs (Director Identification Numbers) to company directors who do not have one. A minimum of three directors can apply for DIN through the SPICe+ filing process. If more than three people do not have a DIN and the applicant wishes to form a company with more than three directors, the applicant must register a company with three directors and then nominate new directors after incorporation.
By submitting Part A and B of the SPICe+ Form simultaneously, the applicant can also utilize this form for Name approval. While reserving Unique Names for the Companies, Part-A of the SPICe+ Form provides for name reservation with two proposed names and one re-submission. The suggested name can be applied for at the same time as the application for Private Limited Company Registration.
The SPICe+ Form’s Part-B allows you to apply for a Private Limited Company Registration. SPICe+ Form, like the preceding SPICe Form, allows for a combined application for company registration and name approval. As a result, Parts A and B of this form can be submitted simultaneously.
The revised SPICe+ Form’s Part B is used for the following purposes:
- Incorporation of a new business; EPFO and ESIC registration applications;
- Reservation of a new business name; DIN application;
- PAN and TAN application;
Establishing a Company Bank Account, and so on
Step 3: E-MoA and E-AoA: E-MoA and E-AOA are acronyms for Electronic Memorandum of Association and Electronic Articles of Association. These two e-forms were created to make the process of forming a private limited company in India easier. These two forms can be filed online as a connected form with SPICe+ on the MCA’s official website, and they must be digitally signed by AoA and MoA subscribers.
Step 4: Obtain the company’s PAN and TAN: The applicant can apply for the Company’s PAN and TAN using SPICe+. Following the clearance of the SPICe+ Form, the Certificate of Incorporation of the Private Limited Company is issued, together with the PAN assigned by the ITD (Income Tax Department).
Kerala is the hub of businesses in India. Private Limited Company Registration in Kerala has its own benefits, like one can avail lots of advantages from registration. Few of them are, registered companies get recognization, also the government of Kerala helps them to grow the business and make a place in the market. Registration of a Private Limited Company is mandatory by the government of India. Consult an expert like BizAdvisors for Private Limited Company Registration in Kerala.
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