The following steps are required to form a company (private or public) in India.
1. Get ‘name availability’ from Registrar of Companies (ROC).
2. Draft and execute Memorandum & Articles of Association and other documents.
3. Pay duties and fees
4. File Memorandum & Articles of Association and other documents with ROC
5. Represent with ROC for any reservations or comments he may have
6. Procure incorporation certificate from ROC.
7. Subscribe to the agreed share capital of the company
8. Obtain commencement certificate (for public companies)
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The following are some critical facts to remember in executing M&A of A.
1. The promoters and Articles of association of the company: Signing outside India In case the Memorandum and Articles is to be signed by any of the promoters out side India, then the signing should be done in the presence of Consul of India at the Indian Consulate. Share Capital The minimum authorised share capital for incorporating a Private Limited company is INR 100,000. The minimum authorised share capital for incorporating a Public Limited company is INR 500,000. Number of Promoters For incorporating a Private Limited Company a minimum of two promoters are required. For incorporating a Public Limited Company a minimum of seven promoters are required.
Fee Structure The following is the fees required to be paid to the ROC for incorporation of the company. Authorised Capital Incremental capital Fee / incremental fee (INR) Upto INR 100,000 4,000 From INR 100,000 to INR 500,000 For every INR 10,000 @ 300 From INR 500,000 to INR 5,000,000 For every INR 10,000 @ 200 From INR 5,000,000 to INR 10,000,000 For every INR 10,000 @ 100 Over INR 10,000,000 For every INR 10,000 @ 50 Commencement of Business A commencement of business certificate has to be obtained from the ROC in case of Public Limited Companies before any business activity can be taken up.
Information Required for Name Approval The following information is required for seeking name approval. 1. Name of the applicant which should be one of the promoters 2. Address of the applicant - this is where all communication will be sent by Registrar of Companies (ROC) 3. Proposed name of the company 4. Alternative names 5. Significance of the first word of the proposed name. This makes it easier to get a desired name. 6. Names of the proposed first directors – minimum 2 in the case of a private company and 3 in the case of a public company 7. Addresses, dates of birth, father’s/husband’s names of the proposed directors 8. Authorised Share Capital – minimum INR 100000 in the case of a private limited and INR 500000 in the case of a public company 9. Objects of the company in brief. 10. Address of Registered office of the proposed company. If a place is not finalized, this information can be given at the time of incorporation. 11. Application fee for approval of name of INR 500 has to be remitted in cash. KA$HYAP JOSHI Number of Directors
For incorporating a Private Limited Company a minimum of two directors are required.
For incorporating a Public Limited Company a minimum of three directors are required.
Memorandum & Articles of Association – Facts to Remember
Note about significance of the proposed name. This is because regulations have some
The Memorandum and Articles have to be signed by all the promoters and witnessed.
The person/s witnessing has/have to give the following details
How to get Name Availability
Company law requires that the name of each company should be unique. As such, the proposed
name of the company to be formed has to be approved by the Registrar of Companies and
blocked till registration. The following is the process to get availability of name.
1. Promoters have to file an application in Form 1A giving the following particulars:
How to form a company in India
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