Saturday, September 18, 2010

How to start a company in India?

Governing law of Companies Registration in India is the Companies Act, 1956. Ministry of Corporate Affairs (MCA - through the Offices of Registrar of Companies (ROC) in each State registers companies.
Company registration process start with filing of name application with ROC. Once, name is allotted, company registration documents are filed with respective ROC for registration. Usually in a day or two ROC register the Company and issue Certificate of Incorporation.


Stage I - Pre-registration process
Basic requirements for registering a limited company are as follows:

Private Company - Two Directors and Two Shareholders
Public Company - Three Directors and Seven Shareholders

The proposed Director should have a valid DIN (Director Identification Number) allotted by the Ministry of Corporate Affairs. One of the Directors should have a valid Digital Signature Certificate issued by the Certifying Authorities approved by the Ministry of Corporate Affairs
It may take 3 to 5 working days for obtaining DIN. Digital Signature can be obtained in an hour.


State II - Name Availability

Name Availability
Company Registration in India starts with filing of an application for Company Name. The chosen name for a company should be unique all over India. Usually in a day or two, concerned ROC approves the name if the applied name is not same or closely similar to the name of an existing company and the proposed name is in accordance with the Guidelines for Name Availability issued by the Ministry of Corporate Affairs (MCA).


Stage III - Documentation

On getting the company name approved by the office of ROC, the following documents need to be drafted in line with the requirements of Companies Act

i. Memorandum of Association (MOA)
ii. Articles of Association (AOA)

On finalizing the MOA and AOA, necessary stamp duty needs to be paid and the same should be subscribed/ signed (by own hand and signature) by promoters (first shareholders) after writing his name, fathers' name, residential address and occupation. Another company can subscribe these documents with the backing of a resolution. It is advisable to sign all pages of MOA and AOA.


Once documents are ready, file all documents with registrar of companies. Usually in a day or two, respective registrar will register your company and mail certificate of incorporation

But remember that these are just formalities to register a company. Running it will be the core part of it. We can help you in managing it properly. So don’t forget to call me while you feel the heat!

1 comment:

  1. Great thoughts you got there, believe I may possibly try just some of it throughout my daily life.

    How to Start a Company in India