companyformation

Form a Private limited  Company in India- minimum share capital=Rs 1 lakh and 2 directors, in just 10 working days-

email- contact@filereturn.com        24 hours mobile-C.A.NIKUNJ SHAH-9820442177
 

Procedure of Company Formation (Private Limited Company), in India.

Step by step guide to Formation/Registration/Incorporation of a Private Limited Company, in India.


Minimum requirements for the Private Limited Company

  • Minimum 2 Directors
  • Minimum 2 Shareholders
  • The directors and shareholders can be the same person
  • Minimum Share Capital shall be Rs. 100,000 (INR One Lac)
  • DIN (Director Identification Number) for all the Directors
  • DSC (Digital Signature Certificate) for one of the Directors

What are the Requirements for a Private Limited Company?

A Registered Business Name: This must be followed by the word ‘Limited' or ‘Ltd'. The Companies Registration Office exercises some control over the choice of name, it cannot be identical (or very similar to) the name of an existing company. It won't be considered if it is offensive or illegal and the use of certain words in a company (for example, `Institute', `National') can only be used in certain circumstances. The company name must be displayed in a conspicuous place at every office, or other premises where the company carries out business. 


A Registered Office: This need not necessarily be the same address as the business is conducted from. Quite frequently the address used for the registered office is that of the firm's solicitor or accountant. This is the address, through, where all official correspondence will go. 


Shareholders: There must be a minimum of two shareholders (also described as `members' or `subscribers'). A private company can have up to fifty shareholders. 


Share Capital: The company must be formed with a stated, nominal share capital divided into shares of fixed amounts. Small companies are frequently formed with a nominal share capital of Rs.100. 

Memorandum of Association: The memorandum is the company's charter. It states the company's name; the situation of its registered office; its share capital; the fact that liability is limited and, most importantly, the object for which the company has been formed. In theory, the company can only operate in the areas mentioned in the objects clause but in practice the clause is drawn to cover as wide an area as possible, and anyway a 75 per cent majority of the members of the company can change the objects whenever they like. Nevertheless, it is worth bearing in mind that directors of the company will incur personal liability if the company engages in a type of business which is not authorised by the objects clause. The memorandum must be signed by at least three shareholders. 


Articles of Association: The document contains the internal regulations of the company, the relationship of the company to its shareholders and the relationship between the individual shareholders. Many companies don't bother to draw up their own articles but adopt (sometimes with some modifications) articles set out in the Companies Act. 


Certificate of Incorporation: This is the document, which the registrar of companies issues to you once he has approved your choice of name and your memorandum. When you receive this document your company legally exists and is ready to trade. 


Auditors: Every company must appoint a qualified auditor. The auditor's duty is to report to the treasurer whether or not the books of the company have been properly kept, and that the balance sheet and profit and loss account presents (or doesn't present) a true and fair view of the company's affairs and complies with the Companies Act. Auditors are appointed or re-appointed at general meetings at which annual accounts are presented, and they hold office from the conclusion of the meeting until the next general meeting. 


Accounts: The Companies Act lays down strict rules on accounting. Every company must maintain a set of records, which show the financial position at any one time with reasonable accuracy. The accounts comprise a profit and loss account and balance sheet with the auditors' and directors' reports appended. A new company's accounting reference period begins on its incorporation and runs until the following 31st March - unless the company notifies the registrar of companies otherwise. Within ten months of the end of an accounting reference period, an audited set of accounts must be laid before the shareholders at a general meeting and a set delivered to the registrar of companies. 


Registers, etc.: In addition to the accounts books, companies are required to have: a register of members and share ledger; a register of directors and secretaries; a register of share transfers; a register of charges; a register of debenture holders; a book can be purchased to hold all of the above. This will be provided automatically if you buy a running concern. 


Company Seal: All companies must have an engraved seal. This must be impressed on share certificates and must be used whenever the company has to execute a deed. Again, this is included in the ready-made company package.

1. What are the forms in which business can be conducted by a foreign company in India?

A foreign company planning to set up business operations in India has the following options:

  • As an incorporated entity by incorporating a company under the Companies Act, 1956 through
  • Joint ventures; or
  • Wholly owned subsidiaries
  • As an office of a foreign entity through
  • Liaison Office / Representative Office
  • Project Office
  • Branch Office

Such offices can undertake activities permitted under the Foreign Exchange Management (Establishment in India of Branch Office or other place of business) Regulations, 2000.


Steps Involved for starting a Pvt Limited Company-

A Private Limited Company is a Company registered under Indian Companies Act, 2013 or any previous Companies Act. As the suggested by the term “Limited” in the name itself, the liability of the members i.e. owners is limited to certain extent. Also, there are certain restrictions laid combined with privileges offered.

For the registering a Private Limied Company, the concerned Ministry i.e. Ministry of Corporate Affairs (MCA) mandates the process of Incorporation by filing all the required forms on their online platform (www.mca.gov.in), which assures the fast and easy process. The Government of India now-a-days promotes the Incorporation of Business in India along with the “Make in India” campaign. If you want to know how to register a private limited company then follow the steps as mentiioned here. It is only after adhering the procedure laid under Act, the establishment and commencement of the Company is easy.

Steps to register Private Limited Company

It takes only 4 steps to register private limited company within time span of 15 to 18 days. The same can be classified in following main heads:

Step 1: Acquire DSC for Directors and Subscriber:

The first and foremost step to register a private limited company is to acquire the DSC of the Directors and Subscribers to MOA. DSC stands for Digital Signature Certificate. Any e-form is filed with the Ministry after affixing the DSC of the Authorised Signatory for Company Incorporation. Also, it is required for the application of DIN of the directors. Further, DSC of the subscriber is needed to file MOA and AOA.

Step 2: Obtain DIN for Directors

DIN is abbreviation of the term Director Identification Number. Under this company registration step, the DIN allotment is carried out by the Ministry to the Individual for acting as Director in a company. DIN is unique such as PAN Card to any person and which is applied and allotted once in the lifetime.

Step 3: Name approval Application

The next step in company registration involves making an application for reservation of name for the proposed company. The application is to be made in Form INC-1, where one can apply for maximum 6 names in order of the preference. One shall keep in mind that the names applied are not identical or nearly resembling with any existing Company or LLP or Registered Trademark.

Once the name applied is approved, it is reserved for the applicant for a period of 60 days, in span of which one has to apply for the Incorporation of Company, non-compliance of which leads to withdrawal of the name granted by the Ministry.

Step 4: Application for Certificate of Incorporation

Once the name is reserved for the proposed company, one shall proceed for making Application of Certificate of Incorporation in SPICe form accompanied with SPICe_MOA and SPICe_AOA.

The application is submitted by paying the requisite Stamp Duty as applicable in case of concerned state on the portal. Once the application is submitted, form for application of PAN and TAN of the company is generated online, which shall be duly submitted after affixing the DSC with MCA.

  • Formulation of MOA and AOA

MOA and AOA stands for Memorandum of Association and Articles of Association, respectively. These are two most important documents for any company and marks the last step in the process of registering a Company.

MOA of company states the scope of operations of the company, whereas AOA states how the company will be carrying the operations as per the laid Act. In case of a Private Limited company, the Articles shall mandatory consist the following three clauses in addition to general clauses:

  • Limitation on the number of members up to 200.
  • Restriction on transfer of shares.
  • Prohibition on accepting securities from public.

For submitting this application, one shall collect following documents first:

  • Utility Bill and NOC from the owner for the Registered Office address of the Company;
  • Rental Agreement with the owner of registered office, if premises is rented;
  • Consent to act as a Director of the company in form DIR – 2;
  • Affidavit and declaration by first subscriber(s) and director(s) in form INC – 9 (duly franked and notarized);
  • Certified True copy of the self-attested Identity proof of the first subscriber(s) and director(s).

After due verification of the application and documents provided, the concerned RoC may grant the Certificate of Incorporation (COI). It is a conclusive proof of existence of the company, wherein the date of Incorporation, Company Identification Number (CIN) and Permanent Account Number (PAN) is mentioned with the sign and seal of the Registrar.

Once, the Certificate of Incorporation is granted, the company may commence the Business Activity as the Incorporation procedure is completed.


.Charges-

Statutory cost-ROC filing fees plus stamp duty= Rs 7000/- approximately

(please note-the above statutory cost of ROC is for Private limited Company having share capital of Rs 1 lakh and having 2 directors only.For any  further increase in share capital, the ROC fees would vary.)

Our charges Rs 25000/-.

Total Rs 32000/-.

Please pay Rs 32000/- online by depositing the amount of Indian Rupees Rs 32000/- into our bank account as under-

FILERETURN.COM PRIVATE LIMITED, ACCOUNT NUMBER-0 3 5 6 0 5 0 0 0 9 8 5,   ICICI BANK, TARDEO BRANCH,MUMBAI,INDIA.

Swift code-ICICINBCTS

Once we receive the payment, then we shall email you all the requirements needed by us and our representative shall call you. We shall complete all the formalities right from the application of name, making the Memorandum and Articles of Association and giving you the Certificate of Incorporation of your company.

24 hours mobile-C.A.NIKUNJ SHAH Mobile-  +91-9820442177  tel +91-22-23878358

So get started,-If interested, please shoot an email with your name and mobile number , and address at this email address-

contact@filereturn.com

 

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