Formation of Company

Why register a company?

Entrepreneurs register a company in India to create a business that is well regarded by customers, suppliers, bankers and the Government. By setting up a company, an Entrepreneur has the ability to create a small or large business that can easily raise capital and scale seamlessly to any size.

How is a company better than a proprietorship?

The ownership of a company is represented by shares. Thus, the ownership of a company can be shared or transferred to any other Indian or Foreign legal entity or person. The directors of a company are also easily replaceable. Hence, on a company allows an Entrepreneur to easily raise capital and transfer ownership without any hassles.

How does a company limited liability?

A private limited company provides limited liability protection to its shareholders. In case of any unforeseen losses, statutory or legal liabilities, the shareholders of the company will not be held responsible. Only the Directors of a private limited company are held responsible in most instances for various statutory liabilities.

How can a company raise funding?

A company can raise equity capital from persons or entities interested in becoming a shareholder. Entrepreneurs can raise money from angel investors, venture capital firms, private equity firms and hedge funds. A company can also raise debt financing from banks, financial institutions and NBFCs easily.

How to Open Private Limited Company Bank Account

A private limited company is recognized as a separate entity with a dedicated PAN. Using the PAN and incorporation certificate of the company, an Entrepreneur can within days open a current account in any bank.