Requirements
for Incorporation of Private Ltd Co.
Through this
blog, I have put in my sincere efforts for making the people familiarize with the
procedure and requirements for incorporation of a Private Limited Co.
Here is a step by step checklist of all the documents that you need to arrange for company
incorporation before and during the company incorporation process.
Step 1:
Apply for
Director Identification of the proposed directors of the Company.
Information required for application of DIN
(Director’s
Identification Number)
- Name
- Father's Name
- Address (Permanent and Present
Address)
- DOB
- PAN
- Passport Number
- Voter Identity card number
- Driving license number (If you don’t
have any of above four except PAN then ignore that)
- Educational Qualification of the
proposed directors
- Current Occupation
- Place of Birth of the proposed
Directors
- E mail ID of Directors
- Phone number of Directors
Documents required for application of DIN
(Director’s
Identification Number
- A self-attested scanned copy of PAN card in .pdf format.
- A self-attested scanned copy in PDF format, of either of driving
license, Passport, voter ID card.
- One recent passport size color photograph in jpeg format.
- A notary attested Affidavit signed by applicant on Rs. 10/- stamp
paper. Refer the following link to download the affidavit. http://www.mca.gov.in/MCA21/dca/din/AnnexI-DIN1.pdf
- In case of a Non Resident Indian or a Foreign National, a copy of
password is required to be submitted along with notarized copies of identity
proof and address proof from Indian Consulate (representative of Indian
Embassy) of home country.
The DIN 1 application form properly filled in using the
above information and attaching the required documents required to be digitally
signed and submitted by a practicing CA/CS/CWA. The DIN is issued instantly as
soon as the application is submitted online subject to condition that if
information supplied is found false at any moment thereafter then necessary
action will be taken against the concerned persons and it would amount to
professional misconduct on part of practicing professional who had digitally
signed and submitted the DIN 1 form. An approval letter is also sent by MCA at
the provided E – mail address. There is Government fee Rs. 100/- for application
of DIN in form DIN 1. The receipt of same is provided instantly by way of GAR 7
payment challan.
Step 2:
After acquiring DIN, apply for Digital Signatures
and then fill form 1A for Name Approval
One of the proposed Directors will
have to get a Class-II digital signature
certificate issued in his/her name. The following information will have
to be supplied to the issuing authority.
- Name
- Father's Name
- Address
- DOB
- PAN
One recent color passport size photograph of proposed director, in jpeg format.
It usually takes three days now for the issue of digital signatures.
A properly filled in and signed application form along with proof of
identity and proof of address needed to be supplied to the issuing authority
for issue of digital signatures.
Step 3:
Application for availability of Proposed Name of the
Company
For approval of proposed name one need to finalize six names and then
check for the availability of the same by using the search facilities provided
at Ministry of corporate affairs web portal. Please select those names with
which no company is already registered and no company has got that word or
sentence registered as their logo, trademark etc. Also don’t select any name which is similar to
national emblem etc. Also we need to mention the meaning/significance of the
proposed names. Also we need to
mention the main objects for which the company is to be incorporated.
Like, for example the last one that I got registered is a software
development company. I mentioned.
The main objective of the company is to provide
software solutions varying from software development, consultancy, maintenance
and support for web, mobile and desktop information technology systems &
other ancillary tasks required for providing the above services. Apart from
this providing training Courses in the related programming languages and
issuing training certificates for the same.
Please note that in form 1A, you need to provide a summarized objective. The Object Clause of the Memorandum of Association of the
Company contains the detailed objective and can include any other object under
ancillary and secondary objective list.
The
Government fee for Name Approval is Rs. 1,000/- to be paid online at the time
of submission of the form. There is requirement to attach digital signature of
one of the directors who will be the first subscribers to Memorandum.
One
can take help of a practicing professional (CA/CS) who will give a declaration
using his digital signatures that he has himself checked the name availability
by making proper use of search facilities provided at MCA portal for inquiring
as to availability of the proposed name and has not come across any already
registered trademark/logo and companies name similar to proposed company name.
In case you take help of a practicing professional then you need not mention
six proposed names. Only one proposed name will be provided for the
consideration of MCA personnel but there are chances of rejection and
declaration by practicing professional is not a certification. Then in case of
rejection you will have to intimate other proposed name within 60 days of date
of intimation of receipt of rejection. After name
approval you need to complete the company registration process within 60 days.
You can check the following link for the rates of
stamp duty applicable in your state
Step 4:
Once the proposed name is approved then we will draft Memorandum of
Association and Articles of Association and file Forms 1, 18 and 32
simultaneously with Registrar of Companies online through MCA portal.
FORM 1 (Application or declaration for incorporation of
a Company)
Memorandum of Association is the document that governs the relationship between the company and its outside
world. No person can make binding a contract on the company which is outside
the scope of the provisions of MOA.
This document is comprised of the following clauses:
- Name clause
- Registered office clause (The name of the state in
which the registered office of the company will be situated)
- Objective Clause comprised of: Main Objects, Ancillary Objects, Other ancillary objects.
- Authorized Share
Capital (one can start the company by only meeting the minimum Capital requirement
i.e. Rs. 1,00,000/-)
- Liability
Clause (This clause mentions that the liability of the directors will be
limited)
The other document to be drafted is the Articles
of Association of the Company. These are basically the rules of the
company.
The MOA and AOA are accompanied with a detail of first
directors/subscribers handwritten by respective first directors/subscribers to
memorandum which will then be signed by a practicing CA/CS/CWA and then a
scanned copy is attached along with Memorandum and Articles of Association of
the company.
The following
format or some other acceptable format for subscribers to memorandum is required
to be attached to MOA and AOA:
We,
the several persons whose names and addresses are hereunto subscribed, are
desirous of being formed into a Company in pursuance to this Memorandum of
Association and we respectively agree to take the number of shares in the
capital of the company set opposite to our respective names.
|
Names , Address, Descriptions,
Occupation and
Signature of the subscribers(in own
handwriting of each individual director)
|
Number of Equity Shares taken by
each Subscriber
|
Names , Address, Description,
Occupation and Signature of the Witness(CA/CS/CWA along with membership
number)
|
Place:
Date:
We, the
several persons whose names and addresses are hereunto subscribed, are desirous
of being formed into a Company in pursuance to this Articles of Association.
|
Names , Address, Descriptions,
Occupation and Signature of the subscribers(Own handwriting)
|
Names , Address, Description,
Occupation and Signature of the Witness
|
|
|
|
Place:
Date:
FORM 18 (For notice of situation of Registered Office)
- Proof of address of the registered
office to be attached to e-form 18.
- For address proof
of the company we will require rent/lease deed
and either of NOC from owner for use of building or office space for the
company purposes or a copy of telephone or electricity bill.
- If the proposed
registered office space is in the name of the director then a No Objection
Certificate from Director is required to be attached along with e-for 18.
Please visit the following link for draft format of No Objection Certificate from landlord/director as the case may be:
Registered Office - NOC
Other
Information to be supplied in e-form 18
- The name and address of jurisdictional police station (means the nearby
police station)
- Email id of the proposed company.
FORM 32 (Particulars as to Managing Director, Director,
Secretary, Manager)
In this form
one has to enter information as to managing director, director, secretary,
manager. There is no mandatory requirement for appointment of a Secretary or a
manager if there is a Director who is appointed as Managing Director. A
director can be appointed as managing director if he/she is full time director
in the company and looking after the routine working of the company. This doesn't mean that he/she cannot take part is the professional services being
provided or to be provided by the company. Also one needs to have a basic
understanding of Executive and Non-Executive director before filling this form.
An executive director is one who takes part in routine activities of the
company and a non-executive director is more like a sleeping partner. People in
private jobs or in MNC’s can be appointed as Non-executive directors.
Non-executive directors are added to make the required count for incorporation
of a company. The positions can be changed later by way of board resolutions
and then making proper intimations at time of annual filings with ROC.
Power of ROC to obtain declaration/Affidavit from
subscribers/first directors at the time of incorporation
This is a new requirement as per a
recent circular and is to be provided on demand. It is a simple declaration by
promoter directors in affidavit form they will not accept any deposits without
obtain prior proper consent under applicable provisions of the Companies Act
1956, RBI provisions and SEBI Act. The said declaration is to be signed by
promoter directors properly notarized on Rs. 100/- stamp paper.
Payment of Government fee for Registration and Stamp
duty
ROC accepts
online payment of fee. The fee depends on amount of Authorized Share capital
fee and Stamp duty. Please note that stamp duty varies from state to state.
Please refer the below link for checking the stamp duty in your state
The authorized share
capital fee for Rs. one lack of authorized capital is Rs. 4,400/- approx.
Please refer this link and
select option Company Incorporation and then Form 1 and fill in the amount of
authorized capital. You will get to know the fee.
Step 5:
Verification of documents/forms submitted at MCA portal
by concerned ROC.
The submitted Forms and Documents are properly
scrutinized and in case of any objections/queries, re submission of the same is
called for. In case everything is alright and acceptable, CERTIFICATE OF
INCORPORATION is issued. Same can be checked using SRN ‘Service Request Number’
by using Track your Transaction status option at MCA portal. A certificate of
Incorporation will also be sent at mail.
Issue of Certificate of Incorporation
A digitally
signed certificate of Incorporation of company is issued in Form 1 in .pdf format,
mentioning the Corporate Identity Number allotted to Company thereon to the
Directors on acceptance of submitted forms by Registrar and Deputy Registrar.
Post Incorporation Activities
Company Seal
After the
incorporation process is complete, get a company stamp and seal manufactured
and preserve it from unauthorized use. The same should be used for any entering
into any legal contract in name of the company, while operating bank account,
issuance of share certificate etc.
Application for permanent Account Number in name of the
Company
Subsequent to
obtaining Certificate of incorporation, apply for PAN of the Company by filling
form 49A visiting any PAN faciliitation centre of UTI or NSDL. Attach a copy of
certificate of incorporation. This form is to be stamped using company Seal and
signed by any one of the directors of the Company. IT takes almost 20-25 days
for issue of PAN card.
Opening a Bank Account in the Company name
After getting
Certificate of registration, Stamp and Seal, PAN. Visit any Bank branch as per
convenience along with a copy of Certificate of Incorporation, PAN and MOA and
AOA and stamp and seal of company.
Apply for other statutory requirements
Apply for other
legal requirements based on objectives for which company is incorporated.
- VAT Registration for trading and
manufacturing entities.
- Shop Act registration for Trading
entities & Factory licence for manufacturing Entities.
- Issuance of share certificate with a
reasonable time span.
- Share certificate is to be issued
within 180 days in case there is a foreign director.
- Appointment of Statutory Auditor within
30 days of date of incorporation.
- Professional tax.
- EPF/ESIC etc.
- Import Export code if applicable.
- Service Tax Registration except for services mentioned in negative list.
Hope this information helps you in your professional endeavor and reaching new heights of profession.
PS: The information shared over here is based solely on my professional experience, knowledge and legal guidelines provided at Ministry of Corporate Affairs web portal. These are subject to amendments in Law and other updates. This does not constitute any legal advice. Please share your thoughts and comments to motivate me in putting more efforts and help provide best information by way of this blog.