A private company is a company which has the following characteristics:
· shareholders’ right to transfer shares is restricted;
· the number of shareholders is limited to fifty; and
· An invitation to the public to subscribe to any shares or debentures is prohibited.
Helping small and medium sized entrepreneurs to set up as a private limited company in India, we have been assisting our clients in selecting best legal entity in India. Understanding the fact the setting up an appropriate legal entity is the foundation of formation of any new company we have been backing up our clients by selecting the best available legal entity in the country. We help a number of foreign entities in starting up their business in India by incorporating a company or opening a branch in compliance with FDI guidelines. To avoid the heavy levied duties and taxes that are charged on the foreign entities while setting up their business we advice them to set up a Private Limited Company as it is treated as Resident Indian Company subjecting under normal Income Tax. Rendering these services we have become a single window service centre assisting our clients in expanding their business in India. Setting up a subsidiary in India for a company is also a part of these services and it takes time of 2-3 weeks involving following steps: 1. Selection of type of the company (Private or Public company) 2. Selection of name for the proposed company 3. Apply for Directors Identification Number and Digital Signatures 4. Drafting of Memorandum and Articles of Association 5. Stamping, digitally signing and e-filing of various documents with the Registrar 6. Preparation and filing of Prospectus/Statement in lieu of Prospectus and e-Form 19/20 (in case of public companies) for obtaining the certificate of commencement of business 9. Obtaining Certificate of Commencement of business (in case of public limited)