For the establishment of both public and private companies, the Companies Act 1956 sets down various rules. Unlike unlimited companies, most commonly used corporate form is limited company. By registering the Memorandum and Articles of Association with the State Registrar of Companies of the state in which the main office is to be located, a company can be formed.
Steps to be taken to get incorporated as a Private Limited company:-
- Apply for DIN (Director Identification Number) Documents Required: Identity and Address proof and one passport size photo of the proposed directors.[information required about directors are Name, Father’s Name, Date of Birth, Nationality, Present Residential address, Permanent Residential address]
- Apply for Digital Signature
- Apply for the availability of the name (Suggest 3-4 name for the new company)
- Drafting of Memorandum and Article of association
- File the documents for Company Registration (Form 1, Form 18, Form 32, Power of attorney)
- Pay Stamp Duty on Memorandum and Articles of Association
- Get the Registration Certificate through email.
- There should be at least two directors of the company.
- The two directors will be the subscriber of the memorandum and they subscribe the minimum capital.
- Minimum capital for a private company is INR 1,00,000/-
- Registration fee is depending upon the authorized capital of the company. It should be equal or more than the subscribed capital of the company.
- Regarding non-resident interest in the company Foreign Exchange management Act governs the issue. You can invest up to 100% depending upon the type of industry.
- Consent of Directors to act as such in Form No.29.
- Arrange for payment of application and allotment money by Directors on shares taken or agreed to be taken.
- File the statement in lieu of prospectus with ROC in schedule-IV of the Companies Act.
- File a declaration in Form-20 duly signed by one of the Director.
- Obtain the Certificate of Commencement of Business.