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Can We Start a Startup With Multiple Products Under One Private Limited Company

 

Can We Start a Startup With Multiple Products Under One Private Limited Company

Yes, one can certainly add many products in the shelter of one private limited company. But, the products must be in line with the central object as specified in the MOA and must be in similar fields.

An organization uses to gain profit from particular business activities. To gain expanding profit the efforts of the company must be directed in one way. The company is a kind of organization that needs a specific registration process to be followed and limited its reach within terms of the law. The scope of activities of the company is determined by the contract documents of the company i.e. MOA and AOA. The scope clause of the company is considered in the MOA of the company, which must be furnished to MCA while company registration.

You can also consult CA/CS near you or make a query on online ca service portals for more information about the multiple product startups. Mother dairy is a brand that deals in all dairy products but they are different from each other.

Startups Must know - about private company requirements

·         No. of Shareholders - 2 (Individuals / Companies / LLP)

·         No. of Directors - 2 (Only Individuals)

·         Authorized Capital - No Minimum Requirements

·         Paid Up Capital - No Minimum Requirements earlier it's Rs 1 Lak

·         All directors must be at least 18 years old.

·         There must be at least one natural person designated as a director and resident of India.

·         The company must have a registered office address in India.

·         The chosen company name must not be the same, or too related, to any other company name currently been on the register at Companies House.

·         The company must give a minimum of one share at the time of incorporation.

What is the Purpose clause of MOA?

The object clause of MOA defines the activities to be carried on by the company and describes the scope of business. A company cannot satisfy in activities other than those provided in the purpose clause. The activities offered outside the scope drawn by MOA are called ultra-virus activities. Also, to restrict and control the company’s activities, the MOA and objects of the company are checked and approved while pvt ltd company registration online. Here, under the object clause, the company must give all the activities it will retain after its incorporation.

However, while company registration, the common frequent issue asked in “Whether one can register a company for multiple businesses?”

Read More- Difference Between Private Limited and LLP Company

The solution is yes; however, it depends on whether the projects are related or not. The company may carry on more than one activity at the permission of the member. All such activities are expected to be listed under the object clause as specified above. In a possible scenario, many promoters wish to put all various activities under one roof, which may be welcome to a certain extent. Here, we are giving a true image of whether different business activities can be registered under one group.

When the activities are registered with the reference to business perspective and growth can be made. Activities ancillary to the central business objective are entitled to be brought on under the same roof and are not a circumstance of problem.

Ways to register multiple businesses

Concerning multiple businesses, here are few of the way by which many businesses can run under a particular Private Limited Company:

·         Creation of different brands under one company

You can register various business verticals under a single company without having separate online company registration in indiaYou just need to introduce multiple brands under a single umbrella, which will represent your original company.

·         Various Subsidiary/Sister concern Companies

You can include more than one subsidiary company in that the Common Holding company must be a Private Limited company. Or else you can incorporate sister-concern companies in that the Board of directors must consist of the Board of the Primary Private Limited Company.

·         Incorporating Many Companies under a Common Group Name

Another alternative is to incorporate several companies under a standard Group name. Some of the examples for the same are ‘Reliance’. Here, the Board may or may not include the same directors as of the Primary Private Limited Company.

·         Amalgamation/Merger

You can also go for restructuring projects also like, Amalgamation, Merger, Takeover, Acquisition, etc.

·         Read More- Difference between Private Limited and One Person company

Multiple related and unrelated activities

Activities that are alike to each other and are of the same area are related and that do not fall under the same field are unrelated activities. By connecting it to similar activities, we mean the 2 activities are linked in one or another way or belong to the same industry. For example, let’s consider a Reliance Company, the main activity of the company is to Reliance Textiles Engineers Pvt. Ltd. This company can hire different employees and make them used to the process and services of the company they will have to give them individual training. Imparting training for the advantage of the company or managing the business goal is allowed but doing it as a lead service is not allowed. A digital market can also be added as it relates to the same field or industry.

Here, if the company begins to impart training to students as a service and with no relation to the original production of the company it will be unrelated to the main objective. Education falls under the education field whereas Reliance falls under a different category and doing both under one roof is not permitted by RoC. RoC does not support unrelated activities as the main thing for the same company. Though, if the members of the company are willing to do so it may be offered and applied for permission to ROC.

Example: Cosmetics- they are different types all comes under one business only so its very much possible to deal in the same company.

Another example is Amul- it has dairy products but they are different from each other. The name is one and all are dairy products of different types like milk, buttermilk, butter, ice-cream, etc.

Conclusion

If you're looking for introduce multiple products under one private limited company then why not. It's possible but for that, you need to get connected with CA/Cs near you. The online CA services will help you in fulfilling all demands and questions in your mind.

LegalPillers is also such a company which has the answer to your entire question and gives best advice for company registration and other services like trademark registration fees as well. To find chartered accountant near me, get connect to us at 9625279785 or 9267941961 or you may write us at info@legalpillers.com

Related Blog-

TYPES OF COMPANY REGISTRATION IN INDIA FOR STARTUPS

DOCUMENTS REQUIRED FOR COMPANY REGISTRATION IN INDIA

Source- https://onlinecompanyregistrationprocess.blogspot.com/2020/06/can-we-start-startup-with-multiple.html

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