How to Start Public Limited Company in India? Formation and Registration process
Those who wish to form a new company in India should follow the following procedures:-
- Selection of the Type of Company
When you plan to form a limited company you need to decide precisely on the type of company as the public company, private company, non-profit making company, etc.
- Selection of Name for the Proposed Company
You have to sit with your promoters or decide by yourself at least six names of the company to be formed. This must be done after thorough observation of various provisions, circulars, and rules of the Ministry of Corporate Affairs (MCA). The Registrar of Companies confirms the chances of adopting the proposed names. This remains valid for a period of six months.
- Apply for the Directors Identification Number (DIN) and Digital Signatures
All directors of the proposed company need to have legitimate DIN. If not they have to apply for it as per the new section 266A of the Companies (Amendment) Act, 2006. It is needed while filing required documents as wanted by companies act.
- Drafting of Memorandum and Articles of Association
After getting the name of the company confirmed, the next step is to draft the Memorandum (M.O.A) and Articles of the Association (A.O.A). These are important documents as they state the ultimate objectives and rules and regulations of the company. It should be noted that the main objects should match with the objects shown in e-Form. Both these drafts need to be done scrupulously preferably under the guidance of experts.
- Payment of Fees
You need to pay a registration fees to start a company. The fees may vary. It depends upon the authorized capital of the company.
- Obtaining Certificate of Incorporation
Once the documents are scrutinized, the Registrar registers the memorandum and articles of the association. This is followed by handing over the certificate of incorporation. You can get it within 7 days of receipt of the documents.
- Obtaining Certificate of Commencement of Business (in case of public limited companies)
This is followed by preparation and filing of Prospectus/Statement in lieu of Prospectus and e-Form 19/20. This leads to procuring the certificate of commencement of business
These steps solves your query regarding, how to start a limited company registration.