Procedure for Company Formation India

Every individual desirious of registering a company in India needs to carry out certain actions. The method with regard to company formation in India is explained in brief below:

Choosing appropriate kind of company

The promoters of the company have to decide the type of company to be formed i.e. private company, public company, non-profit making company etc based on the operations and activity of the company, funding required, level of operations, strategy and amount of financing etc.

Make an application for the Directors Identification Number (DIN) and Digital Signatures.
Before the submission of completed e-Form1A, the directors of the planned company must ensure that they have got genuine DIN. In the event that they do not have the DIN, they are required to apply for the same as per the new section 266A from the Companies (Amendment) Act, 2006. Once again, each and every document given within the Companies Act, 1956, is needed to be submitted with the electronic signature of the managing director, or director, or manager, or secretary of the proposed company.

Selecting a Desirable Name for the proposed company.

A minimum of six proposed names of the company being created, is identified by the promoters after meticulous observation of numerous provisions, circulars, and also guidelines of the Ministry of Corporate Affairs (MCA). On delivery of the completed application in e-Form 1A, filled in up from the promoters, the allocated Registrar of Companies agrees with the possibility of adoption of the sent proposed names, such confirmation continues to be in force only for a period of six months. Failure of submission of the necessary paperwork from the promoters' side within this time period of 6 month, necessitates the submission of an additional application along with suggested names, and also payment of the requisite fees.

Composing of Memorandum and Articles of Association.

Drafting of the Memorandum (M.O.A) and Articles of the Association (A.O.A), is the very next step after obtaining consent of name from the Registrar. These two documents are of the paramount importance since these include ultimate objectives (as likewise displayed in the e-Form) and cherished & ideal guidelines & polices of the company. It ought to be observed the fact that the principal objects need to match with the objects shown in e-Form. The M.O.A and A.O.A must be drafted really meticulously with great attention and concern, after a extensive and elegant counsel from the concerned experts.

Stamping, digitally signing and also e-filing of various papers with the Registrar of Companies.

Following finalising the MOA & AOA, they are required to be filed before the Registrar of Companies together with required registration fees and other papers as well as forms as might be necessary. Usually, the form 1, form 32, form 18, Power of Attorney etc. are filed along with the MOA & AOA.

Pay Requisite ROC Fees

The registration fees vary depending upon the sanctioned capital of the planned company, which can be very easily computed from the Ministry of Companies Affairs site.

Acquiring Certificate of Formation.

Once, the paperwork submitted have actually been scrutinised by the Registrar of Companies and the same are found in order. The ROC, shall issue Certificate of Incorporation to the company and enter the company in the Register of Companies.

Additional Incorporation Steps for Public Limited Company Formation

Once Certificate of Incorporation is received, the process of company formation for private limited company is completed. However, in case of limited company further 2 steps are required to be performed as provided below.

Preparing and filing of Prospectus / Statement in lieu of Prospectus and e-Form 19/20 (in the case of public companies) for obtaining the certificate of commencement of business.

The ROC after delivery of the Prospectus/ Statement in lieu of prospectus together with requisite forms, issue Certificate of Commencement of Business to the company.

The company formation procedure for Limited Company is completed following getting certificate of Commencement of Business.