Apply for Company Incorporation
Incorporation is the judicial process which basically used to form a company. It is a procedure in which business is formally organized and leads into existence.
How Company Incorporation Works
Public Limited Company
A Public Limited Company is a Company limited by shares. In this case, there is no restriction on the maximum number of shareholders, transfer of shares and acceptance of public deposits. The liability of each shareholder is limited to the extent of the unpaid amount of the shares face value and the premium thereon in respect of the shares held by him. However, the liability of a Director / Manager/Officer of such a Company remains unlimited under certain circumstances. The minimum number of shareholders required is 7 (Seven). The Company must have 3 directors and one of them should be resident of India.
Advantages of a Limited Company
Private Limited Company
Private Limited Company is most common and popular format of legal entity in India. It can have minimum two and maximum 200 (Two Hundred) shareholders. It cannot invite public for subscription of its shares or debentures. Further, the shares of Private Limited Company are not freely transferable under the Companies Act, 2013. The liability of each shareholder is limited to the extent of the unpaid amount of the shares face value and the premium thereon in respect of the shares held by him. However, the liability of a Director / Manager/Officer of such a Company remains unlimited under certain circumstances. The company need to have minimum two directors and can have maximum of fifteen directors. One of the directors of the company must be Resident in India.
PROCEDURE FOR INCORPORATION OF PRIVATE LIMITED COMPANY
ONE PERSON COMPANY (OPC)
Certainly, you may not have an office at the time of opening the company. However, on incorporation, you need to fill some additional forms, you should complete this, after incorporation you have 30 days to complete the details.
The registration of a company takes around2 to 3 weeks. However, it depends on the structure or plan of the company.
There are a few requirements:
- NOC and utility bill from the owner of the registered office.
- If the building is rented then the rental agreement with the registered owner.
- Form INC9 needs to be signed by the director or subscriber.
- Self attest is required from both ends director as well as subscriber.
Yes. The proposed made should not be identical or similar to the existing name of a registered company or LLP or registered trade mark. It is advisable to avoid general name. at the same time the proposed name should disclose the activities of the company as far as it is possible to avoid rejection of name approval application.
- Charter Document of Foreign Corporate entity/MOA in case resident company.
- Copy of Address proof of Foreign Corporate entity/Resident Company.
- Certificate of Incorporation of corporate entity in their home country.
- Board resolution authorising use of Name of entity (if the proposed company wishes to use name of such entity).
- Board Resolution authorizing a representative to execute documents on behalf of company and certified KYC (Identity and Address Proof) of such authorized representative.
There is no minimum threshold to invest in Company.
Every company needs to be registered in India must have permanent place of business. In fact, this is the address where all official correspondence takes place during the course of business unless, until the company desires to have different correspondence address. Generally the consultants provide this facility to the companies to begin with. Shifting of registered office within the state is permitted under the Law without much compliance.
A company can start its business activities only after bringing Paid up share capital as agreed in MOA & applying for certificate of Commencement of Business. This needs to be done within 6 months from the date of incorporation of company.
Yes, NRIs, foreign nationals and foreign entities can register a company in India either under automatic route or subject to approval by RBI depending upon the nature of activities being undertaken by the company after its incorporation. However, the Indian company must have one Indian national as one of the director of the company, a registered place of business in India.
The company can designate Indian director on the board to execute and sign necessary documents and deed on behalf of the company in the regular course of business without Foreign Nationals being physically present in India. Or else, the Foreign Nationals director can appoint “Alternate Director” to act on his behalf. In any case, under Companies Act, 2013, every Company incorporated in India must have one director on the board who must also stay in India for more than 180 days in a year.
The companies have an option to have a comman seal made of metal or any other material to authenticate various contracts and other deeds including share certificates. Common Seal should be adopted by a resolution of the Board (generally First Board Meeting) & impression of seal should be made part of the minutes of the meeting in which it is adopted).