A private limited company is a much-chosen option by international entrepreneurs because of the ease of doing business in India. The foreign company can retain complete decision making with the Private limited company. Employees prefer to work in private ltd infrastructure instead of in an LLP or any other structure because of its credible infrastructure. Hence, many international brands prefer private limited setup company in India.
Advantages of Private Limited Company setup in India
• Limited liability
• Easy to raise funds from investors
• Most trustworthy
• Completely online
When do you need to setup a Private limited company in India and not LLP or other companies?
• If you have partners
• If you are planning to raise funds
• If you want to give ESOPs to employees
• If you are an IT company
• If you have corporate clients
The minimum requirement to setup a private limited company in India:
• Minimum of 2 directors from which one needs to be the resident of India.
• Registered address proof.
What is the tax rate of a Private limited setup company in India?
The tax rate is 25% on profits in the case of private limited companies.
Process & documents for Pvt Limited registration
4 steps to setup firm in India in Pvt limited form:
1. Digital signatures of directors and shareholders application: The digital signature of all the shareholders and directors is important to sign and upload forms digitally. It is important for you if you aim to setup business in India. https://dbpl.asia/strategic-setup-business-in-india/
2. Name approval application – Forgetting the name approval before setup company in India you need to apply for name approval by filling a RUN form on the website of MCA.
3. Preparation of AOA and MOA – These are the company’s charter documents and needs to be drafted carefully. The main company business and details of the first director need to be mentioned in both of these documents to setup business in India.
4. AGILE form filling with important Documents – This is the last and final step. All the documents on the government portal need to get updated here. The form attachments are INC 9, DIR2, and all other KYC documents of shareholders and directors.
Private limited companies are one of the smoothest ways of conducting business in India. You won’t need to scare as it is the most credible form of business to start with. As India is the fastest-growing country and you want to be part of its developing era to setup firm in India, then connect with DBPL the best business setup service provider in India.