How to Form a Company in India?
Incorporation procedure of a private limited firm is ruled as per Companies Act 2013. The minimum requirements for a Private Limited Company include the following:
DIN for both directors;
Minimum of two directors;
NOC from the owner of the premises;
Minimum paid-up capital of Rs. 100000;
Digital signatures for all directors;
Minimum of two shareholders;
Proof of registered address.
The procedure of registering a company can be divided into the following steps:
Getting Digital Signatures
One director needs to apply for the Digital Signature Certificate, which is necessary to file the registration documents of the company. For this, only a few details and scannes will be required. It’s necessary to obtain a Digital Signature Certificate for at least one director to sign electronic forms linked to incorporation form INC-1.
Applying for the DIN in the DIR-3 Form
Every person intending to be appointed as a company’s director shall apply for allotment of Director Identification Number in DIR-3 form to the Central Government in such manner and form and along with charges as may be prescribed.
Applying for Name Availability
Apply to the ROC to discover the name availability in INC-1 along with charges. If the proposed name is unavailable, apply for a new name on the same application. The online sign of the applicant proposing the firm has to be fixed in the form. MCA has prescribed specific policies for the availability of name. Therefore, it’s recommended to review the guidelines for the same before making the name application.
After approval of the applicant’s name, ROC will provide name availability letter for a proposed firm. The validity period for the name will be 60 days from the day in which the reservation application was made. The applicant can register for the new firm by filing the INC-1 form within six months of name approval. The Registrar of Companies will then allow the firm to adopt the provided name after fulfilling all legal documentation formalities within the stipulated three-month period.
Drafting AOA and MA
Arrange for the solicitors to draft the Articles and Memorandum of Association. Organize for the stamping of the Memorandum and Articles with the proper stamp duty. Let a minimum of two subscribers sign the Memorandum and Articles, their father’s name, address, number of shares subscribed for, occupation, and at least a 1 witness should be as well. Ensure that the date of stamping the Memorandum and Article is recorded. The primary objects should match that of the INC-1 form. The memorandum and articles should be in specific forms as applicable to a firm.
Filing Different ROC Forms
The following documents are needed when filing with the Registrar of Companies: Document proving payment of prescribed registration and filing charges, residential proofs, duly stamped Memorandum and Article of Association and duplicate thereof, identity proofs, stamped e-form no.1 for company incorporation, a copy of the Registrar of Companies’ letter intimating the proper name availability, verification of subscribers’ signature in INC-10 form, an affidavit from the subscriber to the memorandum in INC-9 form, and declaration by professional in INC-8.
After completion of the above, vetting is done by the Registrar of Companies. The memorandum of articles and association is then printed. The memorandum and articles are then divided into paragraphs, consequently and chronologically arranged.
Payment of Stamp Duty and Form Charges
The necessary fees should be paid after filing the MCA online portal documents. Payment of a prescribed charge is to be made to the Registrar of Firms during the period of incorporation. It relies on the companies’ nominal capital which also has a share capital.
ROC Verifies the Attachments and Forms
After the receipt of the forms and the applicable fees ROC, scrutinize and verify all the attachments and document and suggest necessary modifications.
ROC Issues the Incorporation Certificate
If the Registrar is satisfied with the compliance requirements of the firms, a Certificate of Incorporation of the firm will be issued. The date indicated in the certificate is the firm’s incorporation date. As a result, the incorporation certificate offered by the Registrar is definite evidence that all requirements of the Act have been met.
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