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In Private Limited Company the liability of members is limited up to share capital they contribute, it is a major benefit to Shareholder of the Company. Private Limited Company can raise equity fund from their shareholder.
A Foreign National can be the director of Private Limited Company. To be eligible under Startup India Scheme the Startup must be compulsorily registered as a Company under the Companies Act 2013 or LLP. Proprietorship and Partnership firms are not eligible to apply under Startup India Scheme.
Four major steps to register a company/ startup in India:
Step 1: Acquire Digital Signature Certificate (DSC)
Step 2: Acquire Director Identification Number (DIN)
Step 3: Create an account on MCA portal- New user registration @ mca.gov.in.
Step 4: Incorporate or Apply for the company to be registered.
How to register a Pvt Ltd Company
1. Apply for DSC (Digital Signature Certificate)
2. Apply for the DIN (Director Identification Number)
3. Apply for the name availability.
4. File the EMOA and EAOA to register the private limited company.
5. Apply for the PAN and TAN of the company.
LLPs combine the operational advantages of a Company as well as the flexibility of Partnership Firms. The fee for incorporation of an LLP firm is very nominal as compared to that for Private Limited Company. The compliance requirements for an LLP are significantly lower than those for a private limited company.
Eligibility for Startup India
Being incorporated or registered in India for less than seven years and for biotechnology startups up to 10 years from its date of incorporation. Annual turnover not exceeding Rs 25 crores in any of the preceding financial years.
*(For above 2 Director & Upto 3 Director Rs. 1000 /- extra, Above 3 Director Rs. 1500 /- Per Director extra + Rs. 2000 /- Professional Fees)
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