Company Registration in Chandigarh

Chandigarh is a city and a union territory in India that serves as the capital of the two neighboring states of Punjab and Haryana. This city is unique as it is not a part of either of the two states but is governed directly by the Union Government, which administers all such territories in the country. It is internationally known for its architecture and urban design.

It has been rated as one of the “Wealthiest Towns” in India. It is also ranked 4th in the top 50 cities identified globally as “emerging outsourcing and IT services destinations”. You should consider company registration in Chandigarh considering the above-mentioned facts.

Chandigarh is a place you should consider with utmost importance if you are looking to build a business in India. Once you have come up with a business idea and decided to start a business you will need to follow some company formation procedures in India

A Private Limited Company is considered one of the most popular legal structures amongst small, medium, and large businesses in India due to its various advantages. It can be chosen by anyone looking to build a scalable business. Its registration requires a minimum of two members and a maximum of two hundred members.

A Pvt Ltd Company is a type of privately held small business entity, in which the owner’s liability is limited to their shares, the firm is restricted to having 200 or fewer shareholders, and shares are prohibited from being publicly traded. A shareholder has limited liability towards creditors, & it is restricted only to the unpaid amount of shares.

In case of a default, banks/creditors can sell only the company’s assets but not the personal assets of directors and shareholders. Start-ups and growing businesses choose Private Limited Company formation in India because it allows outside funding to be raised easily, limits the liabilities of its shareholders, and enables them to offer employee stock options to attract top talent.

As these entities must hold board meetings and file annual returns with the Ministry of Corporate Affairs (MCA), they tend also to be viewed with more credibility than a Sole Proprietorship or General Partnership.

• Membership

In order to start a Private Limited Company, a minimum of 2 members/shareholders are required. An individual person above 18 years of age or a corporate body can be a member or shareholder in it. The maximum number of members/shareholders in a Private Limited Company can go up to 200.

• Directorship

A Pvt Ltd Company needs to have a minimum of 2 directors who shall manage the conduct and affairs of the company. The directors may be existing shareholders of the company or can be a person other than a shareholder. There may be a maximum of 15 directors in any company. Every Indian Company has to ensure that they have 1 director who is a permanent resident of India.

• Restriction on Transfer of Shares

The members/shareholders of private limited companies cannot transfer their shares publicly. There can be a restriction on the transferability of shares in these companies.

• Foreign Direct Investment (FDI)

Foreign citizens, foreign corporate entities, NRIs, or OCIs are allowed to be the Directors and/or Shareholders of a Company with Foreign Direct Investment, which makes a Private Limited Company a preferred choice of entity for foreign promoters.

• Prohibition on Inviting Investments from Public

A Pvt Ltd Company is not allowed to invite shareholders publicly to purchase or subscribe to its shares or any other kind of securities. It is also not allowed to accept deposits from the public other than its members, directors, or relatives of directors.