Company Formation in India

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COMPANY FORMATION

In India, the formation/incorporation of a company is governed by The Companies Act, 2013. According to The Act, following types of companies can be formed in India:

  • 1 Public Company– A company may be formed for any lawful purpose by seven or more persons, where the company to be formed is to be a public company.
  • 2 Private Company – A company may be formed for any lawful purpose by two or more persons, where the company to be formed is to be a private company.
  • 3 One Person Company –  A company may be formed for any lawful purpose byone person, where the company to be formed is to be One PersonCompany that is to say, a private company, by subscribingtheir names or his name to a memorandum and complyingwith the requirements of this Act in respect of registration.
Formation

Procedure for Company Formation in India

Following is the procedure of incorporating a company in India:

  • DSC/DIN – Obtain Digital Signature Certificates (DSC) and Director Identification Number (DIN) for each Director / Promoter before making any application to ROC.
  • Name – Apply for the name availability of the proposed company to ROC. For this one has to fill Form INC-1 and submit online along with requisite fee with ROC.
  • Name Validity – Once Name is approved and made available by the ROC it remains valid for 60 days from the date of name application.
  • Preparation of documents –  After getting the name following documents are prepared
  • Memorandum of Association – The Memorandum of Association is the charter of a company. It is a document, which amongst other things, defines the area within which the company can operate.
  • Articles of Association – The articles of a company shall contain the regulations for management of the company. The articles of association of a company are its bye-laws or rules and regulations that govern the management of its internal affairs and the conduct of its business.
  • Letter of authority to a person for carrying out corrections
  • Declaration by the Promoter Directors
  • Form DIR-12 for the Directors
  • Form INC-22 for registered office address
  • Once ROC is satisfied and scrutiny is completed he will issue certificate of Incorporation. The company would come into existence from the date of Certificate of incorporation.

Our Services

AKGVG offers the following services with respect to Company formation in India:

  • Obtaining Director Identification Number DIN for proposed Directors of the new Company
  • Obtaining Digital Signature Certificate DSC for proposed Directors of the Company
  • Complying with documentary requirements which would include obtaining of name approval
  • Get the Memorandum of Association and Articles of Association printed
  • Filling of all company incorporation forms and documents online
  • Change Company Information like change in name, address, directors, main objects etc.
  • Formation of Section 8 (earlier Section 25) Company (Non-profit making organization)
  • Getting Charge Registered
  • Liaison with Registrar of Companies & Regional Directors
  • Maintenance of statutory records prescribed under Companies Act, 2013
  • All other compliances under the Companies Act, 2013.
  • Making arrangements for payment of duties and taxes whichever applicable
  • Obtaining a Permanent Account Number (PAN) from an authorized franchise or agent appointed by National Securities Depository Services Limited (NSDL) or Unit Trust of India (UTI) if any
  • Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
  • Arranging for registration with relevant tax authority eg sales tax, VAT, service tax, excise, custom, ESIC, EPF
  • Filing for Government Approval before Reserve Bank of India (RBI)/ Foreign Investment Promotion Board (FIPB) for Foreigners and NRI’s

Note: For business set up in India by foreign nationals, refer to Business set-up services by AKGVG