Answered on December 22,2021
Incorporating a Company in India: For incorporation, an application has to be filed with Central Registration Centre (CRC), Ministry of Corporate Affairs. The Government of India has integrated and revamped the process of incorporation through Form SPICE+ which facilitates many other necessary and mandatory registrations/licenses covering Income Tax, Goods and Services Tax, Social laws (ESIC, EPFO, Shop and Establishment Registration and Professional Tax Registration) and even opening a bank account.
What are the basics for incorporating a Company (Private Limited) in India?
- Proposed Name:
This shall be the foundation stone of the prospective company, the first would be to decide a name of the company and check with the name availability with CRC in its records.
Minimum 2 Directors, 1 being a resident director i.e a director who stays in India for a total period of not less than 182 days during the financial year;
Minimum 2 Shareholders, whether Body Corporates or Individuals or combination of both;
- Registered Office:
The place of Registered Office (R.O.) of the Company should be decided considering various factors such as specific state taxes, ease of business, availability of resources, etc. In case of legal disputes, the jurisdiction of the court is determined by the location of the registered office of the company. This, therefore becomes an important factor to be considered before incorporation. Shifting of registered office from one state to another is allowed however it may take some time. Irrespective of the location of the registered office, a company can do business throughout India;
There is no minimum capital requirement prescribed for incorporating a private company. However, the amount equivalent to paid-up capital of the proposed Company should be paid/received within 180 days of incorporation.
Answered on December 22,2017
If you want to start company in India as Private Limited Company, you need to follow the following procedure:
- Getting Digital Signature of Directors
- Getting a DIN ( Director Identification Number )
- Name Availability Check & Application for Name Reservation/ Approval
- Drafting of Memorandum of Association (MOA)& Article of Association ( AOA ) . , Filing & Uploading of Incorporation Forms
- Filing of Incorporation Forms INC-7: For Application of Incorporation of Company, Form INC 22 for situation of Office Address of Company Address and DIR-12 for information regarding the Directors
- Getting Incorporation Certificate
Answered on December 22,2017
Step 1: Apply for Director Identification Number and Digital Signature
- Obtaining Director Identification Number (DIN) for the proposed Directors in the Company
- Obtaining Digital Signature for one of the Directors of Company.
- After this, application for name of Private Limited Company must be applied.
Step 2: Applying for the name
The promoters should propose one or more suitable name for the name of company as it offers the flexibility and choice to registrar to select the name in case some names are identical or similar to registered business entities or trademark
- The name should not be similar or identical to any registered company or trademark.
- The name should not be one prohibited under the ‘Emblems and names Act, 1950’.
- The name of company must have suffix “Private limited Company “.
- After submission of name, registrar will review and approve one of the name .It usually takes 3 to 5 working days to approve the name for company .
Step 3: Filing for Incorporation of Private Limited Company
After the name approval, promoters should submit the application, prescribed fees and below said following documents to the registrar.
- Articles of Association, if any
- Memorandum of Association
- Declaration from Directors
- Affidavits of the Directors
A declaration stating that the requirements of the Act and the rules framed there under have been compiled with. This declaration is required to be signed by an advocate of the or Supreme Court or an attorney or a pleader having the right to appear before or a High Court or a Chartered Accountant in whole time practice in India who is engaged in the formation of a company, or by a person named in the Articles as a Director, Manager or Secretary of the Company.
Besides the aforementioned documents, the company must provide relevant information regarding of its registered office within 15 days of registration or during filing of incorporation documents.
Step 4: Subscribing to the Private Limited Company
As per the Companies Act 2013, a subscriber must sign their names and must be subscribed to the shares of the company incorporated. It means each subscriber must have at least one share of the company. Each subscriber should sign the memorandum in presence of at least one witness and must clearly state the following:
- Personal Description
- No of shares subscribed
- Nature of shares etc.
- Likewise both (Article and Memorandum of association) must be duly signed and stamped.
Step 5: Certificate of Incorporation
After filing the above-mentioned documents and payment of necessary fees, the certificate for Company incorporation would be issued by the Registrar of Companies. Upon Incorporation, the company becomes a legal person separate from its members.