A company is formed with minimum 2 directors and minimum paid up capital of Rs 1 Lac. The best way to start a business is to form incorporate Private limited company because it has many advantages like limited liability of members and directors, separate legal entity, easy compliance, etc.
As MCA 21 project has made it possible to get company incorporated without visiting any registrar office. Entire formation is completed online, from getting Directors Identification Number (DIN) to getting Certificate of Incorporation.
To register a company, you need to first apply for a Director Identification Number (DIN) which can be done by filing eForm for acquiring the DIN. You would then need to acquire your Digital Certificate and register the same on the portal. Thereafter, you need to get the company name approved by the Ministry. Once the company name is approved , you can register the company by filing the incorporation form depending on the type of company
Step 1 Application of DIN
The concept of a Director Identification Number (DIN) has been introduced for the first time with the insertion of Sections 266A to 266G of Companies (Amendment) Act, 2006. As such, all the existing and intending Directors have to obtain DIN within the prescribed time-frame as notified.
You need to file eForm DIN-1 in order to obtain DIN.
Step by step Process
Step by step process to be followed by the applicant is as under:
As per the revised procedure for DIN Allotment, any person intending to apply for DIN shall have to make an application in eForm DIN 1 and should follow the following procedure:
1. eForm DIN-1 has to follow the offline eFiling process. For more details regarding the same visit eFiling FAQ's.
2. Attach the photograph and scanned copy of supporting documents i.e. proof of identity, and proof of residence as per the guidelines. Physical documents are not required to submit at DIN cell.
3. Along with the supporting documents, verification by the applicant for applying for allotment of Director Identification Number (DIN) shall also be attached. This shall contain the Name, Father’s name, date of birth, present address, text of declaration and physical signature of the applicant.
4. The eForm shall have to be digitally signed and shall be uploaded on MCA21 portal.
5. Upon upload, Pay the fees for DIN1 eForm. Only electronic payment of the fees shall be allowed (I.e. Netbanking / Credit Card / NEFT). No challan payment will be accepted under revised procedure of DIN allotment.
The user is required to get himself / herself registered on the MCA21 Portal to obtain login id, which is necessary for payment of the fees. After obtaining the login-id, Login to the MCA21 portal and click on 'eForm upload' link available under the 'eForms' tab for uploading the eForm DIN 1. eForm DIN-1 will be processed only after the DIN application fee is paid.
6. Upon upload and successful payment, In case Form DIN 1 details have not been identified as potential duplicate, Approved DIN shall be generated and if the details have been identified as potential duplicate, Provisional DIN shall be generated.
7. Processing of e Form DIN 1
In case, DIN 1 is a potential duplicate, the MCA DIN cell will examine the e Form DIN 1 and same shall be disposed of within one or two days.
8. Intimate approved DIN to your Companies
On approval of DIN, intimate your DIN to all the company (ies) (within a period of 30 days from the date of approval) in which you are a Director, in form DIN-2. Form DIN-2 can be downloaded and printed from the 'DIN' link on the homepage of MCA portal.
9. Company to intimate your DIN to ROC
After the Director has intimated the DIN allotted to the company(ies). The Company(ies) is/are then required to intimate the DINs of its directors to the ROC in Form DIN-3 within a period of seven days of receiving form DIN-2.(Filing of DIN-3 is applicable only in cases, where the date of appointment of director(s) in such company(ies), is prior to July 1 , 2007)
10. If there is any change in the particulars submitted in form DIN-1, applicant can submit e-form DIN-4 online. For instance in the event of change of address of a director, he/ she is required to intimate this change by submitting eform DIN-4 along with the required attested documents.
Step 2 : Acquire/ Register DSC
The Information Technology Act, 2000 provides for use of Digital Signatures on the documents submitted in electronic form in order to ensure the security and authenticity of the documents filed electronically. This is the only secure and authentic way that a document can be submitted electronically. As such, all filings done by the companies under MCA21 e-Governance programme are required to be filed with the use of Digital Signatures by the person authorised to sign the documents.
Acquire DSC -A licensed Certifying Authority (CA) issues the digital signature. Certifying Authority (CA) means a person who has been granted a license to issue a digital signature certificate under Section 24 of the Indian IT-Act 2000.
Register DSC -Role check for Indian companies is to be implemented in the MCA application. Role check can be performed only after the signatories have registered their Digital signature certificates (DSC) with MCA.
Step by step Process for Director
Step by step process to be followed for registration of Director’s DSC is as under:
1. Click on the 'Register DSC' link available on the MCA portal homepage.
2. On the next screen, click on the 'Director' link on the left hand panel and fill-up your DIN. Please ensure that the DIN is approved and typed correctly.
3. System shall verify that the DIN is valid and approved. If the DIN is filled incorrectly or DIN filled is not approved, system will throw an error message to that effect.
4. Fill-up rest of the particulars and ensure that details filled are as per DIN- 1. If the applicant has filed DIN-4, then fill the details as submitted in DIN-4 form.
5. Click on the 'Next' button. The system would verify the details.
6. If the details filled do not match with DIN-1/ DIN-4, as the case may be, for the reason that you do not have your DIN application details, you can get the details from the company in which you are a director.
7. If the details are correct, the system would prompt you to select the DSC.
8. Click on the 'Select Certificate' button to browse and select the certificate. Please ensure that the selected DSC belongs to the applicant, whose particulars are being registered.
9. System shall validate the DSC. If the selected DSC is already registered against given DIN, system will give an informatory message. If a different DSC is already registered against the given DIN, system will ask if the user wants to update his/ her DSC.
10. Type the displayed system generated text for verification in the box provided.
11. Click on 'I agree' button to agree to the declaration that details furnished are correct.
12. Click on the 'Submit' button to register your DSC.
13. Acknowledgement message is displayed to the user.
14. User can take a print-out of the acknowledgement.
15. The applicant can click on the 'Reset' function to clear the data in the fields.
Step by step Process for Manager/Secretary
Step by step process to be followed for registration of Manager’s/Secretary’s DSC is as under:
1. Click on the 'Register DSC' link available on the MCA portal homepage
2. On the next screen, click on the 'Manager/Secretary' link on the left hand panel and fill-up the particulars. Please ensure that the Income tax PAN and other details are as per the information filed in DIN-3 Form.
3. Click on the 'Next' button. The system would verify the details.
4. If PAN details do not exist in the system due to non-filing of DIN-3 form or details filled do not match with details submitted in DIN-3 form, system will throw an error message to that effect.
5. If the details do not match with DIN-3 filing for the reason that you do not have the details filed in DIN-3 form, you can get the details from the company in which you are manager/ secretary.
6. If the details are correct, the system would prompt to select the DSC.
7. Click on the 'Select Certificate' button to browse and select the certificate. Please ensure that the selected DSC belongs to the applicant, whose particulars are being registered.
8. System shall validate the DSC. If the selected DSC is already registered against given PAN, system will give an informatory message. If a different DSC is already registered against the given PAN, system will ask if the user wants to update his/ her DSC.
9. Type the displayed system generated text for verification in the box provided.
10. Click on 'I agree' button to agree to the declaration that details furnished are correct.
11. Click on the 'Submit' button to register your DSC.
12. Acknowledgement message is displayed to the user.
13. User can take a print-out of the acknowledgement.
14. The applicant can click on the 'Reset' function to clear the data in the fields.
Step by step Process for Practising Professional
Step by step process to be followed for registration of Practising Professional's DSC is as under:
1. Click on the 'Register DSC' link available on the MCA portal homepage
2. On the next screen, click on the 'Practising Professional' link on the left hand panel and fill-up the particulars. Please ensure that the details filled as per the records of your professional institute.
3. Click on the 'Next' button. The system would verify the details from the records provided by the concerned professional institute.
4. If the membership or enrolment number is wrong or details filled do not match with the records provided by the professional institute, system will throw an error message to that effect. If you do not have the details as recorded by your Institute, you can get the details from your Institute.
5. If the details are correct, the system would prompt to enter the income tax PAN.
6. The applicant is asked to verify and confirm the PAN. On confirmation, the system would prompt to select the DSC.
7. Click on the 'Select Certificate' button to browse and select the certificate. Please ensure that the selected DSC belongs to the applicant, whose particulars are being registered.
8. Type the displayed system generated text for verification in the box provided.
9.Click on 'I agree' button to agree to the declaration that details furnished are correct.
10. Click on the 'Submit' button to register your DSC.
11.Acknowledgement message is displayed to the user.
12. User can take a print-out of the acknowledgement.
13. The applicant can click on the 'Reset' function to clear the data in the fields.
Step 3: New User Registration
To file an eForm or to avail any paid service on MCA portal, you are first required to register yourself as a user in the relevant user category, such as registered and business user
Step 4 : Incorporate a Company
Apply for the name of the company to be registered by filing Form1A for the same. After that depending upon the proposed company type file required incorporation forms listed below.
1. Form 1: Application or declaration for incorporation of a company
2. Form 18 : Notice of situation or change of situation of registered office
3. Form 32 : Particulars of appointment of managing director, directors, manager and secretary and the changes among them or consent of candidate to act as a managing director or director or manager or secretary of a company and/ or undertaking to take and pay for qualification shares
Once the form has been approved by the concerned official of the Ministry, you will receive an email regarding the same and the status of the form will get changed to Approved
In order to carry out e-filing on MCA21 you have facility to download the eform and fill it in an offline mode. Every form has the facility to pre-fill the data available in MCA21 system. Once the e-form is filled you would need to validate the e-form using Pre-scrutiny button. You would then have to affix the relevant digital signatures and save the form. You would need to be connected to the internet to carry out the pre-fill and pre-scrutiny functions
As the entire process is now can be completed online formation of company takes around 10 to 15 days time. So that for an business man to start a business this option is highly advisable.
For any query you can mail to info@cachauhan.in or chirag@cachauhan.in
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