Requisition for Company Registration
The most suitable form of entity for carrying out business in India with a long term objective would be to form a Private Limited Company, by making investment through the equity shares in the Company. The basic Requirement for a private Limited Company in India is as follows:-
- Minimum Two Directors (One should be resident in India)
- Minimum Two Shareholders
- The company has or shall have office premises in India named as its registered office
- The company shall employ on a full-time basis at the administrative/technical level, at least one person who shall be resident in India
- The Company’s constitution contains a clause whereby all disputes arising out of the constitution shall be resolved in the Courts having jurisdiction in India
- The Company holds or is expected to hold within next 1 month, to subscribe to its capital by opening bank account in India and transferring funds therein.
Under the current rules and regulations the registration of the company in India is easy and hassle free. The steps for incorporation of Company in India are as under:
1. Acquire Digital Signature (DSC) and Director Identification Number (DIN) for proposed Promoter / Director of the Company
- Identity proof
- Address proof
- Passport size photograph
- Educational qualification
- Email id of the Applicant
- Mobile number of the Applicant.
2. Name Approval:
An application through RUN services to be filed with the Registrar of Companies Central Registration Centre, Ministry of Corporate Affairs (ROC).
Following details/facts to be stated in this application :-
- Two Alternative names for the proposed company. The name can be coined names from the objects of the proposed company, or the names of the directors, etc. but should definitely be indicative of the main object of the company. The foreign nationals can have identical name of its parent company, subject to terms & conditions as may be imposed by the ROC.
- Details of Promoters and Directors of the Proposed Company
- Main objects i.e, activities to be carried out by the proposed company upon incorporation.
On submitting the application, the ROC scrutinizes the same and sends the approval / objections in about 2 working days to the applicant. On fulfilling of the objections a formal letter of name approval is issued. Name will be allowed for 60 days only from the date of filing of application for reservation of name.
3. Drafting of Incorporation documents
On receipt of the name approval letter from the ROC, the incorporation documents like Memorandum of Association (MOA) & Articles of Association (AOA), Form INC 9, etc are required to be drafted. The MOA and AOA are charter documents of the company. Therefore, these documents should be drafted with due diligence and by a professional having in depth knowledge of the business and Applicable Indian Rules & Regulations. The MOA states the main and incidental or ancillary objects of the proposed company. It also states the authorized share capital of the proposed company and names of its promoters. The AOA contain the rules and procedures for the routine conduct of the proposed company. It also states names of its first / permanent directors of the proposed Company. Further, this AOA is a technical documents as it contains the rules and regulations to be followed by the Company after incorporation and are to be drafted keeping in view of the expectation and arrangement amongst the promoters inter-se.
Documents required for incorporation of the company
The following documents are required to be executed (signed) before they are submitted to the ROC.
- MOA and AOA - These are required to be executed by the promoters in their own hand in the presence of a witness in quadruplicate stating their full name, father's name, residential address, occupation, number of shares subscribed for, etc.
- Other Incorporation Documents such as Form INC 7, Form INC 8, Form INC 9, Declaration by Directors, Form INC 22 Affidavit for non acceptance of Deposits, DIR 12, Power of Attorney etc.
- Passport of foreign national, if any.
Execution and filing of these documents for Registration
Once the documents as stated above, are properly drafted, these will be signed by the promoter directors and the consultant authorized for incorporation of the company. Further these documents need to be notarized & legalized in case the documents have been signed outside India. Thereafter these documents will be submitted to the ROC for incorporation of the company along with requisite fee as prescribed under the Act.
Issuance of certificate of incorporation by the ROC
The Registrar of Companies on being satisfied about the documents filed and contents thereof, will issue certificate of incorporation. The certificate so issued by the ROC is conclusive proof of incorporation of the company in India under the Companies Act, 2013.