If you wish to form a company in India, you just need to follow the required rules. The rules to form a public or private company in India have been framed by the government. Following the rules strictly can save you from future hassles.
How to Form and Register a Company in India?
The following steps are required to form a company in India.
1. Get ‘name availability’ from Registrar of Companies (ROC)
According to the law it is important for every company to have a unique name. The name has to be approved by the Registrar of Companies and blocked till registration. The steps needed to get availability of name are:
1. File an application in Form 1A giving the following particulars:
- Names and addresses of promoters
- Proposed name of the company
- Alternative names of the company
- Type of company – Private or Public
- Directors and their addresses
- Address of the company
- Authorized Share Capital
- Details of Group companies, if any
- Details of fees paid for name availability
2. A fee of Rupees 500 along with the duly filled application.
3. On approval, the Registrar will issue a name allotment letter and will block the name
2. Memorandum and Articles of Association India – Facts to Remember
The promoters have to give the following details in the Memorandum and Articles of association of the company, in their own handwriting:
- Father’s/husband’s name
- Complete Address
- Number of Shares subscribed
The Memorandum and Articles have to be signed by all the promoters and witnessed.The witness has to give information along similar lines.
3. Pay duties and fees
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) up to INR 100,000 to 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
- File Memorandum & Articles of Association and other documents with ROC
- Represent with ROC for any reservations or comments he may have
- Procure incorporation certificate from ROC
- Subscribe to the agreed share capital of the company
- Obtain commencement certificate before starting business