Procedure
for Formation of Private Limited Company in India
STEPWISE FORMALITIES FOR FORMATION OF
A NEW COMPANY
Persons desirous of forming a Private
Limited Company must adhere to the step by step procedure as discussed below:
- Apply for Directors Identification Number and Digital Signatures, if does not have;
- Selection of name for the proposed company;
- Drafting of Memorandum and Articles of Association;
- Stamping, digitally signing and e-filing of various documents with the Registrar;
- Payment of Fees;
- Verification of documents/forms by ROC;
- Obtaining Certificate of Incorporation.
1. Directors
Identification Number (DIN) & Digital Signature Certificate (DSC):
- DIN
New section 266A has been inserted by the Companies
(Amendment) Act, 2006 which provides that every individual, intending to be appointed as director of a
company shall make an application for allotment of Director Identification
Number (DIN) to the Registrar of Companies (ROC) in the prescribed DIN Form.
DIN can be obtained from
ROC through filing e-form for DIN i.e. DIN-1 with all required documents mean Self
attested Address Proof & Identity Proof and One Passport size color
photograph.
Note: Copy
of PAN card mandatory for all Indian Applicants & Copy of Passport
mandatory for foreign national or NRIs. In case of Director is foreign national
or NRIs identity & address proof should be notarized by an Indian Consulate
of home country & address proof should not be older more than 1 year from
the date of filing of form.
- DSC
Digital Signature
Certificate (DSC) is the digital equivalent (i.e. electronic format) of
physical or paper certificates. A digital
certificate can be presented electronically to prove your identity, to access
information or services on the Internet or to sign certain document digitally.
Since, Ministry of Corporate Affairs (MCA) accepts electronic submission of
Forms on its portal the DSC is mandatory for all the users.
Documents required for
obtaining DSC:
Digital Signature
Certificate application form (duly signed by applicant) & all same
documents as required in DIN application form
2. Selection
of name for the proposed company:
The Promoters have to provide at least 6
names in the order of their preference/priority. The promoters can themselves
search for the available names by visiting the MCA website.
After selecting name for the company
time to file Application of Name Availability with ROC in e-form 1A, the applicant needs to give 6 proposed names in
preferences/priority along with their meaning & significance of each word.
This form should be digitally signed by the Managing Director or Director or
Secretary of the Company.
3. Drafting
of Memorandum and Articles of Association:
- What is Memorandum of Association (MOA)?
Memorandum of Articles covers
fundamental provisions of the company’s constitution. It covers the main object
and other object of the company.
- What is Articles of Association (AOA)?
Articles of Association contain rules
& regulation governing the internal management of the company. It is
binding contract between the company & its members and members among
themselves defining their rights & duties.
After getting name approval from ROC,
the next step is to draft MOA & AOA. The subscribers need to specify Name,
Address & Occupation in their own handwriting & sign the subscription
page of MOA & AOA.
If one of the subscriber is Foreign
National or NRIs, the subscription page where he/she is supposed to sign on the
MOA & AOA, should be notarized by an Indian Consulate of Home Country.
4. Stamping,
digitally signing and e-filing of various documents with the Registrar:
After name approval
following forms to be filed with ROC on the MCA website:
1) Form-1 (Application or Declaration for Incorporation
of Company), along with MOA & AOA. This form should
be digitally signed by the Managing Director or Director or Secretary of the
Company or Chartered Accountant.
2) Form-18 (Notice of Situation or Change
in Situation of Registered Office), along with following
attachments:
- Proof of Registered address shall be attached to e-form 18.
- No Objection Certificate (NOC) from the director if the registered address owned by the director (not taken on lease by the company).
- Other optional attachments
3) Form-32 (Notice of Directors with their
personal Details), along with consent letters of director as
optional attachment
5.
Payment
of Fees:
After filing of documents
online, we need to make payment to ROC fees & Stamp Duty electronically
which is based upon the Authorised Capital of the Company. Please refer to the “Fee Calculator” link on the MCA
website for the ROC fees.
Note: Stamp Duty varies as
per the “State” in which the Company is to be registered. Please refer to the “Stamp Duty” link on the MCA website
6. Verification
of documents/forms by ROC:
After payment of all stamp
duties & ROC fees, ROC scrutinizes all the documents & forms. Now form-18
& form-32 are approved immediately through “STP” (Straight Through Process)
& form-1 is scrutinized by ROC in detail. In case of any objection/queries
raised by ROC, resubmission of form may also require.
7.
Obtaining Certificate of
Incorporation:
Once all the Forms are duly
approved by ROC, the digitally signed “Certificate of Incorporation” is emailed
to the Directors.
As part of Green Initiative
by the MCA, few Certificates including “Certificate of Incorporation” are now
issued only in the electronic format i.e. softcopy (having digital signature of
ROC). Once the Incorporation Certificate is received, Company can start its operations.
The PAN card is an essential record for leading even the most least difficult of budgetary exchanges like opening an investment funds ledger, applying for a charge/Visa. It is a 10-digit alphanumeric personality designated by the pay charge division to an individual, organization, Hindu Undivided Family or some other individual. A noteworthy preferred standpoint of pan card online application
ReplyDeletecompany is to document wage government forms which is basic improvement of the nation. With a legitimate PAN card, you can without much of a stretch wander into various money related exchanges. You can get landline and PDA association and purchase and offer property