As a reputed Company Registration Consultant, Markwart provides an end-to-end Company registration services in order to help you navigate the complexities of the Companies Act, 2013 (the act which regulates the incorporation, compliance, and dissolution of companies in India). The Registrar of Companies (ROC) for each state operates under the Ministry of Corporate Affairs to ensure compliance under the Act. Ministry of Corporate Affairs (“MCA”) as a part of Ease of Doing Business (EODB) initiative recently introduced an integrated Web form SPICe+ (INC-32) offering multiple services viz. Reservation of Name, Incorporation, Director Identification Number (DIN) allotment, mandatory issue of PAN, TAN, EPFO, ESIC, Profession Tax (for the State of Maharashtra) and assistance in opening of Bank Account. It also facilitates allotment of Goods & Services Tax Identification Number (GSTIN), wherever so applied for, by the Stakeholders.
The step-wise process for Company Incorporation
(Private Limited Company) in India
Step1: Obtaining Digital Signatures of Directors & Shareholders This step includes filing of Digital Signature Certificate (DSC) application with the DSC Certifying Authority for obtaining the Digital Signatures of Directors and Shareholders.
Step2: Reservation of Name This step includes filing for Reservation of Name of the proposed company with the Ministry of Corporate Affairs via application in Part “A” of the e-form SPICe+ available on the MCA portal.
Requirements:
Two proposed names of the company in order of preference. Main object/business activity of the proposed company. Apostilled and Notarized Certified True Copy of Board Resolution along with Certificate of Incorporation of the foreign holding/parent company (in case of Foreign Subsidiary to be formed in India).
Step3: Incorporation Application This step includes filing of Incorporation Application with the Ministry of Corporate Affairs via application in Part “B” of the e-form SPICe+ available on the MCA portal within 20 days of getting the Name Approval Letter from the concerned ROC.
E-form AGILE Pro is filed together with Part “B” of e-form SPICe+ which is specifically for the application of EPFO, ESIC, Professional Tax Registration (mandatory for the State of Maharashtra), GSTIN Allotment and Opening of Bank Account of the proposed company.
Mandatory Requirements:
Director details for application of DIN. Memorandum of Association (MoA) and Article of Association (AoA) governing the management of the company. Declarations required from the Subscribers and Directors. Consent of Directors required in Form DIR-2. Some additional details required in case of Foreign Subsidiary to be formed in India.
Step4: Issuance of Certificate of Incorporation Post filing of the Incorporation form (Spice+), the Ministry scrutinizes the documents and information furnished and issues a “CERTIFICATE OF INCORPORATION” upon its satisfaction and verification, which is the conclusive evidence of the formation of the Entity.
Some Few Frequently Ask Questions (FAQs) relating to Company Incorporation What are the types of Business Structures in India?
- What are the types of Business Structures in India?
Types of Business Structures in India are:Private Limited Company: Formed with minimum 2 members and 2 Directors (not necessarily members) and is not allowed to invite public to subscribe for its shares.
Public Limited Company: It is owned by public at large within minimum 3 Directors and 7 members.
Limited Liability Company: Limited Liability Partnership or LLP is a recently introduced corporate structure that combines the advantages of a limited liability company along with the flexibility of a partnership.
One Person Company: It is classified as a Private Company which has only one person (individual) as a member. This business structure is recently introduced in India through Companies Act, 2013 to administer the proprietorship businesses and promote in an organized way. This structure provides the benefits of corporate to those who want no partition to business ownership.
Sole Proprietorship Firm: This type of Business structure is owned and controlled by a single individual but does not gets the status of a recognizable corporate body.
Partnership Firm: A Partnership firm is formed by an agreement between two or more partners with the common goal of earning profits.
Non-Profit Organization: This type of Business structure is formed under Section 8 of the Indian Companies Act with the aim to promote a cause (social, cultural etc.) and is not for profit. - What are the advantages of registration of a Private Limited Company in India?
Main advantages for incorporating a Private Limited Company are:Limited Liability: Liability of members of a private limited company is limited to their percentage shareholding i.e. personal assets of the shareholders remain separate from the company.
Separate Legal Entity: The entity is a separate body than its members in the eyes of the law i.e. the entity is considered to a have a separate legal existence.
Ease in transfer of shares.
Capacity to sue and be sued.
Increased Borrowing Capacity. - What is the minimum capital required?
Pursuant to Companies Amendment Act, 2013, there is no requirement of minimum Paid Up Capital to be invested to start a Company in India. - Who can become the Director of Private Limited Company?
Any individual (only natural person) having a valid Director Identification Number (DIN) can become the Director of a Private Limited Company. - Can I register the company at a Residential Property?
There is no restriction on the place to be treated as Registered Office of a Company. Sufficient and valid proofs such as Rent/Lease Agreement, Utility Bills of the property in name of the owner and NOC from Landlord (in case the property is rented) are required. - What is time schedule for company incorporation in India?
With the introduction of the integrated Web form SPICe+ (INC-32) as a part of Ease of Doing Business (EODB) initiative, getting a Company Incorporated can be done in just few days now. In case the documentation is proper and complete in all sense, the Company gets incorporated within a week’s time. - Can a Company’s Director receive salary like an employee?
Remuneration means any money or its equivalent given or passed to any person for services rendered by him and includes perquisites as defined under the Income-tax Act, 1961 (43 of 1961)
