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How to register a company in India

A Company is a separate legal entity from its owners. Companies Act 1956
regulates the private and public companies in India. A company is formed by
registering the Memorandum and Articles of Association with the Registrar of
Companies of the state where the corporate office is situated.

There are about 7 Lakh registered companies in India. The most commonly
used corporate form is the limited company.

According to Sec.3 of companies act "company" means a company formed and
registered under Companies Act 1956.
"Private company" means a company which, by its articles,—
(a) restricts the right to transfer its shares, if any;
(b) limits the number of its members to fifty not including —
(i) persons who are in the employment of the company, and
(ii) persons who having been formerly in the employment of the company, were
members of the company while in that employment and have continued to be
members after the employment ceased; and
(c) Prohibits any invitation to the public to subscribe for any shares in, or
debentures of, the company ;( holding of one or more shares in a company by 2
or more persons treated as single member)
“Public company" means a company which is not a private company

Getting approval of name is the first step in incorporation of the company.

Procedure in obtaining a Name Approval for the Proposed Company:

 An application in Form No. 1A (General Rules and Forms )signed by one
of promoters needs to be filed with the Registrar of Companies (ROC) of
the state in which the Registered Office of the proposed Company is to be
situated to ascertain the availability of a name along with a fee of
Rs.500/-
 Provide four alternative names for the proposed company. The name
shall not resemble the name of any other company already registered or
violate the provisions of Emblems and Names (Prevention of Improper
Use) Act, 1950.
 Names and addresses of the promoters (Minimum 7 for a public company
and 2 for private company).
 Authorized Capital of the proposed company.
 Main objects of the proposed company.
 Names of other group companies.

Once an application under Form No.1A is submitted, the ROC scrutinizes the
same and informs the approval or objections in about 10 days. If there are no
objections, the ROC issues a formal letter of name approval to the applicant.
This letter of name approval is to be filed while registering the company.

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Documents required to be submitted during registration of company:

 A printed copy each of the Memorandum and Articles of Association of
the proposed company filed along with the declaration duly stamped with
the requisite value of adhesive stamps from the State/ Union Territory
Treasury (For value of stamps to be affixed see Schedule printed in Part
III Chapter 23)and a copy of both.
 Original copy of the letter of the Registrar of Companies intimating the
availability of name.
 Form No. 1 - This is a declaration to be executed on a non-judicial stamp
paper of INR 20 by one of the directors of the proposed company or other
specified persons such as Attorneys or Advocates, etc. stating that all
the requirements of the incorporation have been complied with.
 Form No. 18 - Situation of registered office of the proposed company.
 Form No. 29-Consent to act as a director etc. A private company and a
wholly-owned Government company are not required to file Form No. 29.
 Form No. 32 (in duplicate). Particulars of proposed, directors, manager or
secretary.
 Power of attorney duly typed on a non-judicial stamp paper of the
requisite value. The stamp paper should be purchased in the name of the
persons signing the authority.
 No objection letter from the persons whose name has been given in
application for availability of name in Form No. 1-A as
promoters/directors but are not interested at a later stage should be
obtained filed with the Registrar at the time of submitting documents, for
registration
 The agreements, if any, which the company proposes to enter with any
individual for, appointment as managing or whole-time director or
manager are also to be filed.
 Fee- Cash or a bank draft/ pay order treasury challan should be drawn
in favor of the Registrar of Companies of the State in which the Company
is proposed to be registered as per Schedule X.

Formalities to be followed before or after incorporation:

 Obtaining Permanent Account Number (PAN) from Income Tax
Department
 Obeying Shop and Establishments Act
 Registration for Import Export code from Director General of Foreign
Trade
 Software Technologies Parks of India registration (STPI) if required
 RBI approval for foreign companies investing in India and FIPB approval,
if required.
 The directors of an Indian company, both Indian and foreigner directors,
are required to obtain Director Identification Number - DIN and Digital
Signature Certificate - DSC

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