Company Registration in India - an Overview.!

The rules and regulations for setting up companies were all printed in the Companies Act of 1956. Private cannot collect money from the public for business purposes. They also usually don’t have many members. Public Companies are the opposite. They can collect from the public and usually have more members.

Minimum Capital Requirement: When setting up a Private company in India, the minimum amount of capital to be paid is Rs.1 lakh. However, there is no maximum required amount. The amount can go up at anytime because of different added fees.

Steps involved to form a Company in India:

1.) The first step in when forming a company is to find a name and get it approved. When you find a name, you will need to apply for it. You need to fill out a form called Form No. 1A. You can find this form in the state in which you are setting up your business. The office is called ROC (Registrar of Companies). There is an $11 dollar charge for this form. After you submit this form, they will check to see if the name you have chosen is available. This process usually takes 3 to 5 business days. If it is available, they will give it to you and it will stay valid for 6 months. This gives you enough time to get all of the other steps done.  

2.) You will need to draft both the MOA and the AOA. The MOA will need to list the objects of the company you are setting up. The MOA will cost you around $5 dollars. The AOA will need to list the rules and contains the rules and events that the new company will involve, how much the authorized share capital is, and the names of the managers. The AOA will cost you 0.15 percent of the authorized share capital. It will take you about 3 – 4 business days to prepare the MOA and the AOA.  


When you go to the ROC in your state, you will need to fill out all of the documents listed below. It usually takes 8-10 business days to prepare all of the documents.


Basically the Documents you will need to submit when forming a company are:

1.)  The first document is called: Form No. 1 - This is like a statement that is written on a specific type of paper. It is done by one of the managers of the company that is forming or by an accountant. This kind of paper will cost around $1 dollar. This statement needs to declare that all of the necessities of the corporation have been met.

2.)  The second document is called: Form No. 18 - This form will need to give all of the information about your company that you are forming. This is so that the ROC knows what exactly you are forming.

3.)  The third document is called: Form No. 29 – This form is only for Public Companies. This form has the approval to act as a director. This is so that the ROC knows that you are legally and manager/director.
 
4.)  The forth document is called: Form No. 32 – This form only lists all of the directors/managers.
 
5.)  The fifth set of documents is the MOA and the AOA as described above.

6.)  The sixth document that you need is the original approval document that you receive when you are allotted the name for your company.

7.)  The seventh document you will need is the Power of Attorney. This document needs to be signed by all of the subscribers of MOA. It also needs to state the name of the person who has been approved to accept the certificate of incorporation.


Once the your company is formed in India, then the MCA - Ministry of Company Affairs of India provides you with an Incorporation Certificate.


Details about the Certificate of Incorporation:

After you have finished all of the documents listed above, the ROC will set up a date to go over everything and make adjustments in the MOA and the AOA that you submitted.   When all of this is done and everything is submitted, the certificate of incorporation is given.