I saw a recent post on a popular business forum asking how someone would go about forming a company in India. They didn’t get any decent responses but it got me a bit interested so I thought I would repost some of the stuff I found so people can compare it with forming a company in their own country (If you aren’t sure how to do even that, there are guides for Ireland, the US, and the UK in our Starting a Business Tutorial). Whats funny is in my research this site keeps coming up in Google even though we never covered India (For phrases like “starting a business in india tutorial”)
Anyway, here are some of the main points starting with some definitions:
Private Limited Company
A private company is a company which has the following characteristics:
shareholders’ right to transfer shares is restricted;
the number of shareholders is limited to fifty; and
an invitation to the public to subscribe to any shares or debentures is prohibited.
Public Limited Company
A public company is defined as a company which is not a private company. The following conditions apply only to a public company:
It must have at least seven shareholders.
A public company is not authorized to start business upon the grant of the certificate of incorporation. In order to be eligible to commence business as a corporation, it must obtain another document called “trading certificate”.
It must publish a prospectus or file a statement in lieu of a prospectus before it can start transacting business.
A public company is required to have at least three directors.
It must hold statutory meetings and obtain government approval for the appointment of the management.
There are several other provisions contained in the Companies Act 1956 which are applicable only to public companies and should be consulted.
Limited Liability Partnership
Law coming soon in India
A new law to allow “Limited Liability Partnership” (LLP) in India is expected to be introduced in the Parliament of India. (I have no idea how accurate that is or if it has passed already)
I keep getting pointed to the site below as a resource but it is unfortunately a typical government site that lacks basic tutorials or assistance. Although my man Gupta is gangsta pimpin’ (Despite the way it displays in IE)
http://www.mca.gov.in/
As far as other resources, here is a chart showing the expenses you can expect:
Starting a Business in India
This table summarizes the procedures and costs associated with setting up a business in India. |
 |
|
| Present name of company for approval to the Registrar of Companies (ROC); Get the Memorandum and Articles of Association vetted by the ROC and printed |
1 |
7 |
11.32 |
| Make an application to the Superintendent of Stamps or an authorized bank requesting for stamping of the Memorandum of Association and Articles of Association. |
2 |
1 |
29.43 |
| Present the required documents along with the registration fee to the Registrar of Companies to get the certificate of incorporation |
3 |
9 |
252.22 |
| Obtain a company seal |
4 |
3 |
7.92 |
| Visit the UTI Investors Services Limited to obtain a Permanent Account Number |
5 |
7 |
1.61 |
| Obtain a Tax Account Number for income taxes deducted at source from the Assessing Office in the Mumbai Income Tax Department |
6 |
7* |
1.25 |
| Register with Mumbai Shops and Establishment Act, 1948 |
7 |
2* |
113.19 |
| Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located |
8 |
12* |
113.75 |
| Register for Profession tax |
9 |
2* |
0.00 |
| Register with Employees’ Provident Fund Organization |
10 |
2* |
0.00 |
| Register with ESIC (medical insurance) |
11 |
1* |
0.00 |
Note: Procedures sometimes take place simultaneously. Instances of this are marked with an asterisk (*)
Source: http://www.doingbusiness.org/ExploreTopics/StartingBusiness/Details.aspx?economyid=89
And then from that same source what seems to be a step by step:
Registration Requirements:
|
| Time to complete: |
7 days |
| Cost to complete: |
INR 500 |
| Comment: |
Name availability application (Form 1A): Select in the order of preference a few names proposed for the new company, which should indicate the main objects of the company to be incorporated. The names chosen should not violate the provisions of Emblems and Names (Prevention of improper Use) Act, 1950 and should not phonetically or visually resemble the name of any existing company. Once the name of the company has been finalized an Application in Form 1A prescribed in the Companies (General Rules and Forms) 1956 along with the filing fees of Rs. 500/- will have to be made in the office of the ROC. It is very important to fill up Form 1A carefully as no change will be made once the Form is filed. With the computerization in the ROC’s office, the name availability applications are disposed off within 3 working days after their receipt.,
It is a common practice to have the draft Memorandum and Articles of Association vetted by the Registrar of Companies before one formally registers the company. The procedure is that the MOA & AOA are submitted to the office of the ROC, the relevant official may, after taking a detailed look into the MOA & AOA, bring out certain objections, which need to be suitably addressed. Once the objections are addressed, the documents are finally accepted for registration. The process may take 7-8 days. |
| Time to complete: |
1 day |
| Cost to complete: |
INR 200 (for MOA) + INR 1000 (for AOA) for each slab of INR 500,000/- or part thereof + INR 100 (stamp paper for declaration Form 1) |
| Comment: |
The application should be accompanied necessarily by the following:
(i) Two Blank Copies One unsigned copy of the Memorandum of Association and Articles of Association.
(ii) Payment receipt.
Ensure that the copyies submitted to the Superintendent of Stamps or to the bank for stamping areis unsigned and no promoter or subscriber has written anything on it by hand. The Superintendent returns the copy ies one of which is duly stamped, signed and embossed evidencing the payment of the requisite stamp duty. .
The rate of stamp duty varies from State to State.
Stamp duty payable on memorandum of association and articles of association for a company to be incorporated in Mumbai, Maharashtra is:
AOA: Rs. 1000/- for every Rs. 500,000/- capital or part thereof.
Once the Memorandum and the Articles of Association of the cCompany have been stamped, the same is required to be signed by the Promoters of the Company including commencing with the father’s name, address, occupation and the number of shares subscribed for in their own handwriting which is duly witnessed.
After signing the documents are to be dated.MOA: If along with AOA: Rs 200.
Declaration form 1: On Rs 100 stamp paper |
| Time to complete: |
9 days |
| Cost to complete: |
see comments |
| Comment: |
Present the following documents along with ROC with filing fee and registration fee:
- The stamped and signed copies of Memorandum and Articles of Association (3 copies).
- Stamped Form-1 (Declaration of compliance), 18 (Notice of situation of registered office of the company) & 32 (Particulars of Director, Manager or Secretary) in duplicate.
- Any agreement if referred to in The MOA&AOA forming part of the Memorandum of Association.
- Any agreement proposed to be entered into with Any individual for appointment as Managing or whole time Director.
- Name availability letter issued by ROC.
- Power of Attorney from the subscribers in favor of any person for making corrections on their behalf in the documents and papers filed for registration. This must be on non-judicial stamp paper of Rs.100/-.
- Passport copies of all first directors (certified by advocates, chartered accountants, etc)
Fill up Form No.1 printed on Rs. 20 non-judicial stamp paper which relates to “declaration of compliance with the requirements of the Companies Act 1956 on application for the registration of a company and all the matters precedent and incidental thereto.” The Form has to be signed by an advocate, Company Secretary or Chartered accountant and it is preferable to have it witnessed by the promoters.
The fees paid to the Registrar for registration are scaled according to the amount of the authorized share capital of a company as stated in its memorandum. The schedule is as following:
For registration of a company whose nominal share capital does not exceed Rs.100,000: Rs. 4,000.
For registration of a company whose nominal share capital exceeds Rs.100,000, the above fee of Rs.4,000 with the following additional fees regulated according to the amount of nominal capital:-
(a) Rs. 300 for every Rs.10,000 of nominal share capital or part of Rs.10,000 after the first Rs.1,00,000 up to Rs.5,00,000;
(b) Rs. 200 for every Rs.10,000 of nominal share capital or part of Rs.10,000 after the first Rs.5,00,000 up to Rs.50,00,000;
(c) Rs. 100 for every Rs.10,000 of nominal share capital or part of Rs.10,000 after the first Rs.50,00,000 up to Rs.1 crore;
(d) Rs. 50 for every Rs.10,000 of nominal share capital or part of Rs.10,000 after the first Rs.1 crore.
The above stated fees is required to be paid in the office of the ROC by way of a Demand Draft/ Treasury Challan.
The DD has to be drawn in favor of either the office of the concerned ROC or in favor of the Pay and Accounts Officer, Department of Company Affairs, Mumbai.
In the present case the total amount of fees (including the filing fees of the forms filed) to be paid in the office of the ROC for getting the company registered with an authorized share capital of Rs.1,00,000 approximately would be Rs.4,800/- Schedule of RoC filing fees for the Articles and for the other forms l, 18 and 32:
(i) Rs. 200 In respect of a company having a nominal share capital of Rs. 100,000 or more but less than Rs. 500,000;
(ii) Rs. 300 In respect of a company having a nominal share capital of Rs. 500,000 or more but less than Rs. 2,500,000;
(iii) Rs. 500 In respect of a company having a nominal share capital of Rs. 2,500,000 or more.The ROC will then scrutinize the documents filed by the Company and if necessary the authorized person will on intimation make the necessary corrections under his initials. The authorized person will be provided the Obtain the Certificate of Incorporation of the company from the office of the ROC. The company can commence its business on getting incorporation certificate from RoC. The other procedures given below can be done after the business is started. |
| Time to complete: |
3 days |
| Cost to complete: |
INR 350 |
| Comment: |
|
| Time to complete: |
7 days |
| Cost to complete: |
INR 71 (INR 66/- for Fee and INR 5/- for Application Form) |
| Comment: |
Under the Income-tax Act, 1961, each person is required to quote his Permanent Account Number (PAN) for tax payment and Tax deduction Account Number (TAN) for depositing tax deducted at source. The Central Board of Direct Taxes (CBDT) has instructed banks not to accept any form for tax payments (challan) without the PAN or TAN, as the case may be.
The Permanent Account Number (PAN) is a 10-digit alphanumeric number, issued in the form of a laminated card, by an Assessing Officer of the Income Tax Department.
The Income Tax Department has outsourced PAN allotment to UTI Investors Services Limited. The application for PAN has to be made in Form 49A along with a certified copy of the certificate of registration, issued by the ROC. Form 18 (stating location of registered office) has to be filed with the ROOC at the time of incorporation. Form 49A has to be filled in black ink. The outsourcing was done as a means to speed up the allotment PAN. |
| Time to complete: |
7 days (simultaneous with procedure 5) |
| Cost to complete: |
INR 55 |
| Comment: |
TAN is required to be obtained by all deductors under Section 203 A of the I-T Act. It is a 10-digit alpha-numeric number and is compulsory to quote TAN in TDS returns (including e-TDS). All those persons who are required to deduct tax at source are required to apply and obtain TAN through form 49B. .
Income tax is levied by the national government. There is also MODVAT which applies only to manufacturers and is therefore not included in this analysis. |
| Time to complete: |
2 days (simultaneous with procedure 6) |
| Cost to complete: |
INR 5000 |
| Comment: |
Registration has to be completed within thirty days from the date on which the establishment commences its work. For the State of Mahashtra (where Mumbai is located), Schedule 1 of the Maharashtra Shops and Establishments Rules prescribe the fees for registration and renewal of registration, which vary depending on the number of employees in the establishment. Cost: Rs. 100 to a maximum of Rs. 6,000 per year, depending on the number of employees. In addition, a sum three (3) times the registration and renewal fee per year is charged as Trade Refuse Charges (TRC) under the provisions of Mumbai Municipal Corporation Act, 1888. |
| Time to complete: |
12 days (simultaneous with previous procedure) |
| Cost to complete: |
INR 5025 |
| Comment: |
VAT tax registration will be effective from the date of application.
In the State of Maharashtra, from April 1, 2005, Sales Tax has been replaced by VAT and for VAT registration Form 101 is filed. Further, the authorized representative signing the said application is required to be available at the Sales Tax office on the day of verification of the application. Accompanying documentation included, certified true copy of the MoA and AoA of the company, registered office address proof of the company, antecedents of Directors copy of the office premises agreement as proof of the place of business (in Mumbai), copy of registration certificate under Mumbai Shops and Establishments Act, 1948, copy of Income Tax order, if any and PAN card, bank current A/c. number, original challan of payment of registration fees, two passport size photograph of the authorized signatory, and board resolution authorizing the signatory to sign the application form, appear before the Sales Tax Officer and to complete the formalities related to registration |
| Time to complete: |
2 days (simultaneous with procedure 8 ) |
| Cost to complete: |
no charge |
| Comment: |
Application has to be submitted to the inspector. Registration has to be obtained for each of the directors of the company. The company has to obtain a two-fold registration; one in its capacity as an employer and second in its capacity as a company. Profession Tax is levied by the state authority and the registration has to be obtained post-incorporation of the company. |
| Time to complete: |
2 days (simultaneous with procedure 7) |
| Cost to complete: |
no charge |
| Comment: |
Provident Commission (part of local labor authority). Procedure: Fill in application.
Provident Fund Registration is optional if employee strength is not more than 20. |
| Time to complete: |
1 day (simultaneous with procedure 7) |
| Cost to complete: |
no charge |
| Comment: |
Register with the ESIC department (which is a part of local labor authority).
ESIC Registration is optional if employee strength is less than 10. |
|
Note: Procedures sometimes take place simultaneously. Instances of this are marked with an asterisk (*).
Finally, from the Everyday Entrepeneurs site, here are some more pointers:
1. Proprietorship. If you are starting a one-person, self-employment kind of thing, then you’re better of starting a proprietorship firm. This is usually for enterprises like digital artists, consultants, trainers, etc. Even if you’re a work-from-home Mom, it’s always a good idea to run your enterprise under a proprietorship account. My Mom does. That way, you can put in a lot of your daily expenses and reduce your tax burden. I started out this way, and eventually converted the proprietorship into a private limited company. If you run your proprietorship firm from a location other than your home, you’ll also need clearances from the Municipality and local authorities. Also, you can’t run a full-fledged commercial establishment from out of your residence. So if you start to grow well, move into a reasonably good commercial area.
2. Private Limited company. This is a more complicated option, but has a number of advantages. The complications arise from the need to comply with various regulations and laws. For instance, I got trumped once, when we realised we had to not only file our income tax returns with the IT department, but also with the Registrar of Companies (RoC). The fines for not doing this are pretty steep. So for the moment, we’ve decided to simply go ahead and continue not filing returns with the RoC, and hope they come up with some sort of an amnesty scheme. For a Private Limited company, you need:
a. Startup capital - I think the minimum is Rs. 2 lakhs, and that’s what I started off with
b. Registered office - I had given my home address, although our office was elsewhere
c. Name of the company - you need to fill up the form with suggested names and go to the RoC. Avoid generic names, or you’ll have to end up adding words like (India) or (Mumbai) to your name. Makes it kludgy. You also need justifications for why you chose that name.
d. Directors - I think you need at least 3 directors. I have my Dad and sibling registered as directors, and they have an equity holding in the company as well. When your company becomes successful, you can pay them a salary, thus increasing your expenses, reducing tax, and getting the money back into your own account. Needless to say, paying them a salary means increasing their tax liability, so you need to balance it all out.
For all this, you’ll need to hire the services of a good Company Secretary, who will fill up the necessary forms for you, prepare the Articles of Association and Memoranda of Association, and do the rounds of the necessary departments to register your firm. Remember, keep this as generic as possible. More information on this is available at the ICSI site.
3. Partnership firm: I think this option is open to lawyers, CA’s and such-like. I never explored this option, and can’t provide much inputs. But you’ll probably know someone else who’s in a partnership firm, and can advise you on the legalities and advantages of it.
In any of these situations, a good Chartered Accountant is a must. When you’re starting out, the fees you pay to the CA might seem very high, but a good CA will save you tons of money in the long run by reducing your taxes, and showing you the best way to increase your expenses.
Don’t forget to register for service tax. A very wide range of services now come under the ST net.
If anyone is interested in writing an easy to read guide to starting a business in their own country (Including India), get a hold of us and it will be worth a few links!
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on Wednesday, December 20th, 2006 at 1:25 pm and is filed under Online Business.
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Comment by jaybong
Posted on December 21, 2006 at 7:44 am
You do know there’s are -more- tag,
Comment by Jason
Posted on December 21, 2006 at 10:17 am
You won’t ever see a -more- tag on this blog. I think they are horrible.
Comment by joshi sashikant
Posted on December 22, 2006 at 1:04 am
Nice compilation
Comment by Mike
Posted on December 24, 2006 at 6:48 am
You know most people check the post and if it’s more than 3 lines and has no picture/video, they’ll click the back button
Seriously though great guide, looks like its quite cheap..
Comment by Thomas
Posted on December 26, 2006 at 10:30 pm
Thanks for this compilation, has enough food for thougt for the needy;-)
Comment by uday
Posted on December 29, 2006 at 10:34 am
Very Very Helpfull, real saver, Thanks a lot
Comment by Chirag Motani
Posted on February 19, 2007 at 10:43 am
Respected Sir,
i currently have a private ltd company. If i have to convert my exsisting company to public ltd in India. Could you please give all required details.
Trackback by Harish Palaniappan's
Posted on June 28, 2007 at 5:55 am
start-up registering business in india ?
The information on starting or registering a business in india, is not one of those things that are very well available. The government staff who do it, dont want any layman to be informed, because their bread and butter is in the bribe money they get …
Comment by Vivekananda Paniyala
Posted on October 31, 2007 at 7:28 pm
I appreciate the effort behind this compilation. I am sure this is useful to oridinary businessmen who wish to incorporate company and start doing business.
Comment by Ajay
Posted on November 18, 2007 at 7:25 am
Thanks for the good information for starting of a business. A well built information site
Comment by Jeanne
Posted on November 20, 2007 at 5:16 pm
As a general guide, this one is a good start. I think that people would benefit from knowing that if you start with a public company in the US and want to start a company in India, the process is MUCH more complicated and could take up to a year to complete. I agree with the comment about the bribe money! This creates the lions share of the stalls in the process!
Comment by RavKr
Posted on February 10, 2008 at 3:36 pm
That’s a very comprehensive information with the time lines and the costs involved. But I do have one question though. I had been running a company with only a current account. What type of problem could I possibly face in future?
Comment by Jidesh Kumar
Posted on March 27, 2008 at 12:17 pm
New Law on Company Formation in India
MCA 21 envisages electronic filing of documents and paperless administration and pertains to Registrar of Companies offices as stipulated in the Indian Companies Act, 1956 (the Act). One can get a complete understanding of the MCA 21 from the MCA portal. The key benifits envisioned by the MCA 21 are as under:
(a) On‐line incorporation of companies
(b) Simplified and easy mode of filing of Forms/ Returns
(c) Registration as well as verification of charges anytime and from anywhere
(d) Inspection of public documents of companies anytime from anywhere
(e) Corporate‐centric approach
(f) Building up a centralized database repository of corporates operating in India
(g) Enhanced service level fulfillment and customer relationship building
(h) Total transparency through eGovernance (i) Timely redressal of investor grievances (j) Availability of more time for MCA employees for qualitative analysis of corporate information
All the ROC’s have virutally become back offices and several facilitaion centers have been set-up know as Registrar’s Front Offices (RFOs).
Armed with this knowledge, I proceeded to incorporating the company. For MCA21, the following four types of users are identified as users of Digital Signature Certificates (DSCs).
(a) MCA (government) employees ; b) Professionals (Chartered Accountants, Company Secretaries, Cost accountants ) who interact with MCA and companies in the context of the Companies Act, 1956.; (c) Authorized Signatories and Directors of Companies ; (d) Representatives of Banks and Financial Institutions
I had already solicited the help of my collegue Vinod [who works with us ] who also happens to be a CA.
The first step - OBTAIN A DIN /Director Identification Number
Process
An existing Director/ person intending to become a Director are required to make an application to MCA for allotment of a unique identification, namely, Director Identification Number (DIN). It is intended to be a lifetime number. For obtaining DIN, form DIN1, requiring personal details such as name, address, and email ID of the person making an application, is required to be filled in. There is a fee of Rs. 100/ for application for allotment of DIN. On submission of of form DIN1 online, applicant shall be allotted a provisional DIN and then he/ she is required to pay the requisite fees with reference to the provisional DIN obtained. The applicant shall be required to take a printout of the submitted eForm and will have to attach proof identity, proof of residence, proof of father’s name, proof of date of birth and photograph. The applicant shall be required to sign the physical copies of the form and get these documents duly notarzed/ attested by an approved authority. The applicant shall be required to send these documents along with the proof of payment made for DIN application to MCA DIN Cell at Noida. On receipt of these documents, the application will be scrutinised and on approval, the DIN shall become active. The outcome of application (approval / rejection) shall be communicated to the user through email. Also the applicant can enquire the application status by quoting provisional DIN allotted at MCA portal.
Comment:
DIN is a mandatory process for foreign directors too and is required while applying for Form 1A [Name Availability Form]. A provisional DIN number is allotted instantly upon uploading the required information on the MCA portal. Eureka, it works..
The process of obtaining a permanent DIN however takes approximately 4 weeks subject of course to documents being in order. Form DIN-2 needs to be submitted to the MCA along with the approved number of all companies of which they hold a director position. DIN-3 attested by Company Secretary is required to be submitted to the concerned Registrar of Companies (ROC).
The Second step - DSC/ Digital Signature Certificate
The Digital Signature Certificate (DSC) is another requirement that is now required to be accomplished. I suggest that the DSC be applied parallel alongside applying for Name Availability since the process of incorporation can be accomplished that much more faster. The DSC can be obtained from six private agencies authorized by MCA 21 (Ministry of Corporate Affairs 21st century).
For the purpose of using the new electronic filing system under MCA 21 Project the applicant needs to obtain a Class II Digital Signature Certificate. Company directors submit the prescribed application form along with proof of identity and proof of address. Each agency has its own fee structure which ranges from INR 400 to INR 2650.
Comment:
The process was remarkably smooth with the process taking around 2 days, although Vinod did share with me that he had encountered problems previously. If the directors are foreign in origin, valid address proofs in the form of passport duly notarised and photographs would need to be provided. It is advisable therefore that several copies [I had around 5 copies] of the address proof of the directors be notarised since this saves valuable time. A good CA is very necessary to ensure that there are no undue delays.
Step three - Applying for Name Availability
Perceived to be a simple step, this can at several instances be time consuming. It is therefore advisable to go in for professional consultation before one applies for name availability. Clients often feel that their chosen names would be made available to them as a matter of course. This of course is from from reality. There are a few tips to get your name of choice.
Firstly, caution must be exercised that the chosen name is not generic., in the sense the name must not be too general. For example Wipro technologies - while the name Wipro is just fine, the Registrar of Companies (ROC) would take objection to the usage of ‘technologies’. This is because the ROC is guided by an internal circular to the effect which has come into effect post incorporation of most MNC’s who tend to have generic names.
Secondly, a good CA would always suggest you to check informally at the ROC whether a choice of name would be available. This is quite critical to hasten the process.
Thirdly, in case of a wholly owned subsidiary, if the choice of name bears the name of the parent entity, it is always advisable to obtain an NOC from the parent entity to the effect that it has no objection in the Indian subsidiary using the same name. This is particularly so if the parent entity is a well known name eg., Walmart
Fourthly, it is necessary to provide six names in the order of preference. It is necessary to make an intelligent choice of names since the ROC is likely to grant the second choice if the first does not fit the bill.
Comment:
We were able to obtain the desired name with not much difficulty since we had done our homework of checking with the name with the ROC well in advance. Officially, the ROC accomplishes this taks in 7 days and I must say that more often than not this timeline is often exceeded. It amazes me as to how much can be accomplished with bureaucrats in India with the right connections.
Step four -Memorandum & Articles to be stamped
Once a name is approved, the Memorandum of Association and Articles of Association together with miscellaneous documents have to be filed within six months of the approval. In practice, if the proposed name is available the same is granted within 2 or 3 days.
The application should be accompanied necessarily by the following: (i) Unsigned copies of the Memorandum of Association and Articles of Association. (ii) Payment receipt. Ensure that the copies submitted to the Superintendent of Stamps or to the bank for stamping are unsigned and no promoter or subscriber has written anything on it by hand. The Superintendent returns the copies, one of which is duly stamped, signed and embossed evidencing the payment of the requisite stamp duty. The rate of stamp duty varies from State to State. According to Article 10 and 39 of the Indian Stamp Act,1899, stamp duty payable on memorandum of association and articles of association for a company to be incorporated in Mumbai, Maharashtra is: AOA: Rs. 1000/- for every Rs.500,000/- capital or part thereof subject to a maximum of Rs.50,00,000.00. Stamp duty for the MOA is Rs.200.00 Once the Memorandum and the Articles of Association of the Company have been stamped, the same is required to be signed by the Promoters of the Company including commencing with the name and description, father’s name, address, occupation and the number of shares subscribed for in their own handwriting which is duly witnessed. After signing the documents are to be dated. Declaration form 1: On Rs 100 stamp paper
Comment:
It took us around 2 working days to get the stamping done. The process was however delayed since we had to get the overseas directors to sign off on the Memorandum and Articles.
Final Steps - Documents to be presented to obtain the Incorporation Certificate
After the stamping of the MOA and AOA, 3 copies along with the following documents are required to be scanned and uploaded on the MCA-21 Portal: - The stamped copies of the MOA and AOA - Copy of the Form-32 along with the consent letters of the Directors of the Company, who are appointed therein. - Form-1 - application and declaration for incorporating of a Company and printed on non judicial Stamp paper worth INR 20. - Form 18-evidencing the address proof of the Company. - Form-1A-evidencing the name approval. - Copy of challan evidencing the fee with respect to above mentioned forms. - Power of Attorney from the subscribers in favor of any person for making corrections on their behalf in the documents and papers filed for registration .This must be on nonjudicial stamp paper of INR 100. - Identification of the subscribers by way of copy of driving license, passport, voters identity or ration card. These documents, in addition to their online uploading, are also to be filed in original with the ROC. Once the documents are uploaded and confirmation of payment of fee is received from the Bank by the ROC, it processes the papers in order of their receipt. A software ensures that the queue can not be jumped by ROC. The fees paid to the Registrar for registration are scaled according to the amount of the authorized share capital of a company as stated in its memorandum.
Comment:
The process of issuing a certificate of incorporation normally takes seven working days. Pursuant to incorporation, TAN and other necessary registrations as required can be obtained.
Concluding remarks
In all the process of inorporating of a private limited company in India can be a smooth process if the right tools of approach are adopted. We took around 18 working days to obtain the certificate of incorporation. I must make a special mention that that the government has made an honest attempt to smoothen the rough edges that one encountered in incorporating a company. This is not to say that the present system is fullproof as one can still find old barks of wood at the ROC reminding one that it may take a while before things are up to speed of this digital era.
H/P: +91 9811620150
Jidesh Kumar.M.D
Managing Partner
King, Stubb & Kasiva
Advocates & Attorneys
E-66, 2nd Floor, Kalkaji
New Delhi- 110019
India
Ph : +91 11 - 41032969, 41318190, 41318191
Fax: +91 11 - 41329569
Web: www.ksandk.com
E-mail: jidesh@ksandk.com