When you start a company formation, you have a responsibility to make sure that your company has everything it needs to hit the ground running. You will need to set up your company before you can even register it with the Companies House. You will have to set up your companies Articles of Association and the Memorandum of Association to set up your directors, shareholders, and the company secretary. When you start up a company, company formation is a requirement. Company formation in India can be relatively difficult to those who are completely new to the business environment. Company formation in India is a completely separate entity from a business and the process of company formation creates that separate entity that is under the law.
Forming a company of your own is your first critical step towards achieving a combination of financial security and self employment. Before you take the thrust, however, having some good knowledge about company formation will help you to do things the right way. Company formation in India is an excellent way for international entrepreneurs to conduct business in one of the world’s most rapidly growing economies in recent years. Company formation can be a very tough process to those who are completely new to forming a company. There are forms that require to be filled out and documentation that all needs to be sent to the Registrar of Companies. This is very necessary that you are fully aware of the process of company formation and everything that is involved in the process.
However, company formation in India can often be quite time consuming for the reasons discussed and this can often distract you from other important business activities. It is very important that when completing the essential steps for company formation that you are not wasting time and that you are allowing time to focus on other business activities. NBFC is Non-banking financial company, which is registered under the Companies Act, 1956 of India and is engaged in the business of loans and advances, acquisition of shares/ debentures /stock/bonds/securities issued by government or local authority. NBFC registration requires the name, address and the documents to be submitted to RBI by NBFCs for obtaining certificate and Registration from RBI. FCRA registration in India is very important to curb the various illegal dealings or malpractices which are detrimental to the interest of our country. After the passing of Foreign Contribution Regulation Act 1976 we are to some extent successful in curbing these illegal agreements a malpractice.
A Private Limited Company is a Company limited by shares in which there can be maximum 50 shareholders, no invitation can be made to the public for subscription of shares or debentures, cannot make or accept deposits from Public and there are restriction on the transfer of shares. The liability of each shareholder is limited to the extent of the unpaid amount of the shares face value and the premium thereon in respect of the shares held by him. However, the liability of a Director / Manager of such a Company can at times be unlimited. The minimum number of shareholders is 2.