Company Formation Process in India
egister a new company in India, you must submit an application to the Ministry of Corporate Affairs (MCA). You make the application online at MCA portal remotely too. For registration, you’ll need a Digital Signature Certificate(DSC), and Director Identity Number(DIN), among other things.
What is Company Formation in India?
- Advice on all the statutory compliances with regard to the provisions of The Companies Act, 2013 and all other previous laws
- Secretarial Audit
- Assistance in drafting and vetting of an array of agreements and commercial contracts
- Expertise in drafting agreements for various Public Sector Undertakings, Real Estate and Construction companies,
- Telecom companies, Retail sector and various other private and multinational companies
- Liaison with the relevant offices of the Ministry of Company Affairs, National Company Law Tribunal, National Company Law Appellant Tribunal and other authorities concerned, in respect of various matters pertaining to the
- Affairs of the company
Formation, administration and maintenance of NGOs, Societies
- Registration of an NGO with the Registrar of Companies, Registrar of Societies or with the Registrar of Assurances as the case may be
- Filing of returns, reports and other necessary documents from time to time as per the provisions of the governing statute
- Drafting of Memorandum and Articles of Association, Memorandum and Rules and Regulations and Trust Deed of a Company, Society and Trust respectively
- Obtaining necessary approval from the Central Government and complying with all secretarial and other legal compliances
How to Register a Company in India?
Registering a company in India is now a simple 4-step process. Here is what you’ll need to acquire:
- Digital Signature Certificate (DSC)
- Director Identification Number (DIN)
- Registration on the MCA Portal
- Receive Certificate of Incorporation from Registrar of the Company (ROC)
These are the basic steps to Incorporate a company in India with minimum government approvals. If you still need help registering your company, don’t stress over it, and let our team of experts guide you.
Filing various forms in ROC for Registration a Company in India
- The following documents are required to be filed with the Registrar of Companies:
- The Memorandum of Association (duly stamped) and a duplicate thereof
- The Articles of Association (duly stamped) and a copy thereof
- The Declaration by Professional in INC-8
- An affidavit from the applicant for the Memorandum in Form INC-9
- Proof of residence
- Proof of identity
- The verification of the subscribers’ signatures on Form INC-10
- A copy of the letter from the Registrar of Companies stating the availability of the company’s proposed name
- The e-Form No. 1 (with prescribed stamps) for the incorporation of a company
- The receipt indicating the payment of the prescribed registration and filing fee.
How to Start a Business from Scratch?
You should opt for the Private Limited Company if you are planning to raise funds, LLP if it’s a family business and you are not planning to raise funds and One Person Company if you are a single founder.
Applicable Laws for Forming a Company in India
The laws applicable for incorporating a company in India include the India Companies Act of 2013, and Foreign Exchange Management Act of 1999 as is applicable for foreign direct investments (FDIs) and Limited Liability Partnership Act, 2008 are governed by Ministry of Corporate Affairs http://www.mca.gov.in.
Here we bring you with detail Business set-up process and services in India.
Both Indian promoters and the foreign promoters can form the following business entities:
Types of Companies?
Types of Companies in India – Types of Corporate Entities in India – Types of Legal Entities in India – Options for Foreign Investors Doing Business in India.
In India, the following types of business entities are available:
- Private 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 200; and
- an invitation to the public to subscribe to any shares or debentures is prohibited.
The minimum requirements for the Private Limited Company
- Minimum 2 Directors
- Minimum 2 Shareholders (Directors & Shareholders can be the same)
- Minimum paid-up capital of Rs. 1,00,000/-
- DIN for both Directors
- Digital Signatures for all Directors
- Consent from subscriber or director
- Proof of Registered Address
- NOC from the owner of the premises
What is Public 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 required to have at least three directors.
- No restriction or prohibition for raising funds from public through IPO, FPO etc.
What is a Limited Liability Partnership(LLP)?
LLP is an alternative corporate business entity that provides the benefits of limited liability of a company but allows its members the flexibility of organizing their internal management on the basis of a mutually arrived agreement, as is the case in a partnership firm. LLP shall be a body corporate and a legal entity separate from its partners. It will have perpetual succession. While the LLP will be a separate legal entity, liable to the full extent of its assets, the liability of the partners would be limited to their agreed contribution in the LLP.
What is One Person Company (OPC)?
One person company is a type of company introduced by the Companies Act, 2013 that has one person as a shareholder and director. During the incorporation of a one person company, the sole director & shareholder must propose a person as his/her nominee.
What is Section 8 Company?
Section 8 Company is a Company that is licensed under Section 8 of the Companies Act, 2013 which had the main object; for promoting research, social welfare, religion, charity, commerce, art, science, sports, education, and the protection of the environment.
- There must be a minimum of two shareholders.
- There must be a minimum of two Directors (Directors and shareholders can be the same person);
- At least one of the Director shall be a resident in India;
- There is No requirement for Minimum capital
- The Income-tax PAN is a mandatory requirement in case of the Indian nationals;
- Any one of the Identity Proof be it Voter ID/Aadhar Card/Driving License/Passport is required; Passport is, however, a mandatory requirement for the proof of identity in case of the foreign nationals;
- Any one of the Proofs of Residence (Electricity Bill/Telephone Bill/Mobile Bill/Bank Statement);
- The Registered Office address proof
What is Branch Office?
Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in India for the following purposes:
- Export/Import of goods Rendering professional or consultancy services
- Carrying out research work, in which the parent company is engaged.
- Promoting technical or financial collaborations between Indian companies and a parent or overseas group companies.
- Representing the parent company in India and acting as buying/selling agents in India.
- Rendering services in Information Technology and development of software in India.
- Rendering technical support to the products supplied by the parent/ group companies.
- Foreign airline/shipping Company.
What is Project Office?
Foreign companies planning to execute specific projects in India can set up temporary project/site offices in India for carrying out activities only relating to that project. The Government of India has now granted general permission to foreign entities to establish project offices subject to specified conditions.
What is Liaison Office / Representative Office?
Setting up a liaison or representative office (“LO”) is a common practice for foreign companies seeking to enter the Indian market. A Liaison Office could be established with the approval of the government of India. The role of Liaison Office is limited to collection of information, promotion of exports/imports and facilitate technical/financial collaborations.
Liaison office cannot undertake any commercial activity directly or indirectly.
A branch office is not allowed to carry out manufacturing activities on its own but is permitted to subcontract these to an Indian manufacturer. Branch Offices established with the approval of RBI, may remit outside India profit of the branch, net of applicable Indian taxes and subject to RBI guidelines Permission for setting up branch offices is granted by the Reserve Bank of India (RBI).
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