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company incorporation

Writer's picture: CA Ankit P JainCA Ankit P Jain

Guide to Company Incorporation in India

1. Decide on the Type of Company

Before you begin, choose the type of company that suits your needs:

  • Private Limited Company: Best for small to medium-sized businesses, with limited liability and restrictions on share transfers.

  • Public Limited Company: Suitable for larger businesses that need to raise funds from the public.

  • One Person Company (OPC): Designed for single entrepreneurs, offering limited liability.

  • Limited Liability Partnership (LLP): Combines elements of partnerships and corporations, providing limited liability while retaining the flexibility of a partnership.

2. Obtain Digital Signature Certificate (DSC)

A DSC is essential for signing electronic documents related to company registration.

  • How to Obtain:

    • Apply through certified agencies like eMudhra or NSDL.

    • Required documents include identity proof, address proof, and a passport-sized photograph.

3. Apply for Director Identification Number (DIN)

DIN is mandatory for all directors of the company.

  • How to Apply:

    • Complete Form DIR-3 on the MCA Portal.

    • The form must be digitally signed using the DSC.

4. Name Reservation

You need to reserve a unique name for your company.

  • How to Reserve:

    • File the RUN (Reserve Unique Name) form on the MCA Portal.

    • Ensure that the proposed name complies with the naming guidelines and is not similar to existing company names.

5. Draft Required Documents

Prepare the necessary documents for incorporation:

  • Memorandum of Association (MOA): Outlines the company’s objectives and scope of business.

  • Articles of Association (AOA): Defines the rules and regulations for the company’s internal management.

    • MOA and AOA Samples

6. Incorporate the Company

Submit the incorporation application form along with the MOA and AOA.

  • How to File:

    • Use the SPICe+ (Simplified Proforma for Incorporating Company electronically Plus) form available on the MCA Portal.

    • The SPICe+ form consolidates various processes including company incorporation, DIN allotment, PAN, and TAN.

7. Pay Registration Fees

Fees are based on the company’s share capital and the state of incorporation.

  • How to Pay:

    • Fees can be paid online through the MCA portal.

    • MCA Fees Structure

8. Obtain Certificate of Incorporation

Once the Registrar of Companies (ROC) reviews and approves your application, you will receive a Certificate of Incorporation. This certificate confirms that your company is officially registered.

9. Apply for PAN and TAN

Post-incorporation, obtain PAN and TAN for your company.

  • How to Apply:

    • PAN: Apply through NSDL or UTIITSL.

    • TAN: Also available through NSDL or UTIITSL.

10. Open a Company Bank Account

Open a bank account in your company’s name. You will need the Certificate of Incorporation, PAN, and other relevant documents.

Additional Resources

Tips for a Smooth Incorporation Process

  • Accuracy: Ensure all details are accurate to avoid delays or rejections.

  • Consult Professionals: Seek advice from a company secretary or legal expert if needed.

  • Stay Informed: Regularly check for updates or changes in regulations through the MCA portal.

By following these steps, you can efficiently navigate the company incorporation process in India and ensure compliance with all regulatory requirements.

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