Counsel

YES, You can register a Private Limited Company or LLP on your residential home address.

You will require following documents.

1. Rental/Lease Agreement in the name of the Company/Director/Shareholder or if No Rental Agreement, Sale deed conveying the property in the name of the landlord.

2. Utility bill (Telephone Bill/ Electricity Bill/ Gas Receipt/ Water Bill) in the name of the landlord. This document should not be older than 2 months.

3. NOC from the landlord.

If you need any help regarding the same write to us at enquire@wazzeer.com.

Hi,

If your company has Authorized capital as 10 Lakhs and Paid up capital is 1 Lakh, that means you can offer 9 Lakhs of shares to another shareholder or to yourself in future.

Lets say you have authorized capital of 10 lakhs and the share value of the company is 10 rupees per share at the time of incorporation then you can issue maximum of 10,00,000/10=1,00,000. shares. 

In that 10 Lakh authorized capital, the company has paid up capital as 1 Lakh that means you and other co-founder have issued 10,000 (10%) shares of the company. (50-50% each or 10-90% each as per your investment). remaining 90,000 shares can be issued later.

Later on as the company starts business or raises capital, the share value is decided through valuation process. This is the market value of the share that changes. Book value stays as mentioned above.

After valuation the market value of the shares is calculated. Depending on that the shares will be issued, it can be any value (100rs per share or 5000rs per share after valuation)

Lets say an investor is investing 1 Cr rupees, and the market value of the shares is 5000rs then he can isssue 1,00,00,000/5,000=2000 shares of remaining 90,000 shares.

The paid up capital of the company is calculted as investment/share-value. i.e. 1Cr/5000=2000. add this paid up capital to the earlier 1 Lakh, Current paid up capital of the company becomes = 1,02,000.

Now the company has issued 12000 shares and it can still issue 88000 shares.

End of the year dividend is calculated. Assuming initially the co-founders have issued 50-50% shares each, and the company's profilt is 1.2 crore rupees.

0.2 Cr (20 Lakhs) kept as reserves with the company. and remaining 1 Cr rupees will be divided among the shareholders as follows

1crore/12000= 833.33 per share, as the first co-founder has 5000 shares he will get 5000*833.33=41,66,666. 2nd Co-Founder will get the same as per his 5000 shares and the 3rd investor who has 2000 shares he will get 2000*833.33=16,66,666.

Hope this is clear.

Hi,

There is no option of converting sole proprietorship ownership. You can sell all assets and liability under an agreement.

But, the purchaser shall obtain all registration newly under his PAN.

Hi,

Company Incorporation is a standard process which is as follows

The process involves 4 steps for private limited company incorporation.

1) Digital Signature.

2) Name registration of the company.

3) Drafting and signing of incorporation documents (MoA, AoA, etc.).

4) Applying for Incorporation in ROC.

There are few mandatory requirements that need to be followed.

• A company must have at least 2 shareholders (and can have a maximum of 200)

• At least 2 directors required of which 1 director must be a resident Indian

• Please note that Shareholders and Directors can be the same people.

• You will need an address that will act as your company address. You may or may not have your teamwork from this office/ address.
(Rental agreement and NOC from the owner of the property is required)

Company complinace will start once the company is incorporated.

We advise you to have a standard authorized and paid up capital at the time of incorporation. which is 10,00,000 (10 Lakh rupees) as authorized capital and paid up capital as per your convinience. Usually it is 1,00,000 (1 Lakh rupees).

When you are in the process of fund raise, these can be changed based on the terms of fund raise. as incresing authorize capital will cost you extra govt fee + Professional fee, it is not wise to spend money on it currently.