Private Limited Company is governed by the Companies Act, 2013 and Rules framed thereunder., It is one of the most legal forms of corporate legal entities in the world
Company registration
One of the important features of Company form of entity is that it has separate legal entity, a company has a status of artificial person in the eyes of law, it can hold assets and liabilities in its name same as a living human being. Incorporation of a company is a crucial task, government has introduced various measures to make incorporation of company more efficient, yet while doing the same utmost diligence is required.
Common mistakes to avoid in a private limited company formation
The process of Company registration is not as simple as it sounds, because there is much more to it. The government has made various changes in the method of registering a company, and nowadays, registration takes place via online mode. You should avoid making the following mistakes while registering your Company.
Business Type
There are different types of companies, each having its own advantages and disadvantages. The various legalities that are followed are different in different companies; thus, it is a crucial task to select the type of company. One should consult professionals to understand the legalities and choose the right option.
Business Description
One important thing to keep in mind is that it is always better to take some time and seek professional help when it comes to deciding the number of shareholders, directors, etc. and the various terms laid out on the different shares. This is beneficial as it helps to avoid any future conflicts, and hence, none of the items should be neglected.
Right Supporting Documents
There are some supporting documents that are required while registering the company. One should make sure that the documents are correct and valid. If any incorrect data is provided, then there is a possibility of rejection as well.
Business Laws and Taxes
Apart from the Companies Act 2013 there can be various rules and laws imposed by the state government in different states. In such matters, it is necessary to refer to professional help to keep everything legal and under control.
Company’s Name
There are specific rules and regulations that need to be followed while choosing the right name for your company. One should check whether the name you are choosing is available or not. In case it clashes with another company name, the name will be rejected, and the company registration fails. Give two names as an option so that you minimize the chances of rejection.
Other Common Errors
Other common errors while incorporating any company are spelling mistakes, mismatch between the information provided, non-availability of required documents etc. Hence, before we proceed for incorporation of any company we must make sure that we consult with professionals having expertise in this field and take their help for registering our entity in best possible way.
