Company Registration in Kerala
Pvt Ltd Company Registration in Kerala is one of the popular options to start a business amongst startups and emerging businesses. It is a corporate entity that is easy to register, manage and run. It can induct up to 200 shareholders wherein the liability of each member is limited.
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Company Formation in Kerala
Kerala is a state on the southwestern, Malabar Coast of India. The economy of Kerala is the 12th-largest state economy in India. It has focused more attention on the growth of the Information Technology sector with the formation of Technopark, Thiruvananthapuram which is one of the largest IT employers in Kerala.
Therefore, being such a beautiful and economically developed city, starting up a business or a company here would be the best decision taken by an entrepreneur.
Kerala 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 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. It basically 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 of a private limited company has limited liability towards creditors, it is restricted only up 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 registration 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.
Features of Company Incorporation in Kerala
In order to start a Pvt Ltd Company, a minimum of 2 members/shareholders is 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.
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.
Advantages Of Pvt Ltd Company Registration in Kerala
Minimum Requirements For Company Incorporation in Kerala
What Is Included In Our Company Registration package?
Company Formation Procedure in Kerala
Documents Required for Company Registration in Kerala
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