INCORPORATING A COMPANY IN INDIA

ALL YOU NEED TO KNOW ABOUT STEPS INVOLVED FOR COMPANY INCORPORATION IN INDIA

Starting a company requires a lot of planning and activities and more than that there are a number of formalities which need to be complied with. Detailed procedures and paper works are involved in order to start or to register a company in India. So, what happens when you have to start a business by registering a Company? Have you wondered how the company is registered in India under Companies Act 2013 ? No, then don’t worry, we have written it down for you.

Procedure for Incorporation of a Company in India

• Acquire Digital Signatures of Directors and Subscribers to MOA for filing of Eforms for company incorporation on MCA portal.

• Name approval application in E-form RUN (Reserve Unique Name) to be filed. RUN service should be used pursuant to Section 4(4) of the Companies Act, 2013 and Rule 8 & 9 of Companies (Incorporation) Rules, 2014. Companies can also directly apply for the name in SPICE form but with only one name. Company’s name approval process has been simplified by replacing the eform INC-1 with a new simple web-based application called RUN (Reserve Unique Name). An applicant seeking reservation of name for a proposed company shall be processed by the Central Registration Centre. Approved name shall be reserved by Registrar for 20 days from the date of approval by ROC. Approval of name through “RUN” is an optional way.

• Application for company incorporation after company’s name approval (if applied & approved through RUN service) in SPICe (Form No INC-32) along with application for DIN allotment on MCA portal with below mentioned documents:

• Affidavit and declaration by first subscriber(s) and director(s) in Form INC–9. 
• Consent to act as a Director of the proposed company in Form DIR–2{minimum two directors for Private limited and minimum three directors for public limited}.  
• Proof of office address.  
• Copy of utility bill for recent month with Digital Signatures of all the subscribers to MOA(minimum two in case of private limited and minimum seven in case of public limited) and professional on subscriber sheet of the MOA & AOA.

• After proper filling of SPICe (Form No INC-32), fill all the information in the e-form INC-33 (MOA) and INC-34 (AOA) as per requirement of Table A to J of Schedule I and details of area code, AO type, range code & AO number for allotment of PAN & TAN. Applying for PAN and TAN will be compulsory for all fresh incorporation applications filed in the SPICe form.

• Mandatory DSCs of subscribers in SPICe MOA and SPICe AOA instead of  signatures being done manually in hard copies of Memorandum and Articles of Association. Submission of SPICe (Form No INC-32) with linked forms SPICe MOA (Form No INC-33) and SPICe AOA (Form No INC-34) on MCA website and make the payment of the same.

• On approval of Incorporation forms, Certificate of Incorporation will be generated with Corporate Identification Number(CIN), PAN & TAN of the Company.

• Declaration to be filed to ROC for commencement of Business in E-Form INC 20A within 180 days of company incorporation along with the proof of receipt of share application money from subscribers. Filing of form INC 20A  for commencement of Business is compulsory for all companies incorporated after 1^st November, 2018.

Conclusion:

To register a company, one should acquire the Digital Signatures of Directors  and Subscribers to MOA for filing of SPICe (Form No INC-32) which is a Single application for Reservation of name, incorporation of a new company, and/or application for allotment of DIN and application for PAN and TAN. Separate application for name reservation can be made in E-form RUN (Reserve Unique Name) before filing of SPICe (Form No INC-32). From the date of incorporation of company, subscribers to the memorandum and all other persons who may from time to time become members of the company, shall be the owner of body corporate with respect to shares held by them as contained in MOA, capable of exercising all the functions of an incorporated company under the act and having perpetual succession with power to acquire, hold and dispose of property, both movable and immovable, tangible and intangible, to contract and to sue and sued by the said name. Fee for incorporation of company by filing SPICe, MoA and AoA has been reduced to Zero where the authorized share capital is upto Rs.10 Lacs in case of company having share capital or where the number of members are upto 20 in case of company not having share capital. That was all that we had to share about the procedure of company incorporation in India as per the Companies Act, 2013. We hope this article was helpful enough for you to understand the procedure of company registration for doing your business. Do you have more queries? Get in touch with us, MS Associates, a Chartered Accountant firm in Bangalore, we are equipped with the skills to handle such assignments.