How to set up a Company in India
How to set up a company in India without having a visit of any Government office.
It sound's great !! isn't it.
Yes, Its true now anyone can register a Company in India and in the entire process of setting up a Company can be done without having a single visit to any of the Government office.
We must appreciate and thanks to Ministry of Corporate affairs ( MCA ) for making the entire process so simple and online.
Just follow the below steps and you are on your way to incorporating a company.
1. Get a DIN :
The first thing you must do is to apply for a Director Identification Number ( DIN ). This can be done through this link
http://www.mca.gov.in/MCA21/dca/din/DIN.html
You need to fill the DIN application form online, pay the fees of Rs 100 and print out the form. On payment of the fees, a temporary DIN is generated along with a Service Request Number ( SRN ). The printed form than will then have to be posted to MCA Delhi office along with attested identification proof and address proof. Within about 3-4 days of receipt of the application by MCA you will receive an email confirmation of allotment of DIN followed by the DIN allotment letter via post.
( Note : DIN will have to acquired for all the persons to be mentioned in Form 1A as proposed promoters)
2. Get a DSC :
While the DIN application is under process, you should apply for a Digital Signature Certificate ( DSC ). The authorities who provide a DSC as approved by the MCA can be found on this page,
http://www.mca.gov.in/MCA21/dca/common/certifying-new.html
You can apply for a digital signature to any of the vendor listed. The cost will depends upon the level of the security you choose for the DSC and the number of years of validity. Again, the form can be filled online at the respective vendor's website, make the payment online and then print the form and submit with your attested identification and address proof. Most vendors will deliver the DSC to you via email itself with instruction as to how to activate it.
( Note : DSC can be acquired for only one of the Director's who will be authorised to make submission to ROC/MCA on behalf of the promoters )
3. Apply for the name of the Company :
Once you have been allotted a DIN and you have a functional DSC, you can apply to MCA to check the availability of the name of the Companyyou want to register. This is done using Form 1A.
This can be downloaded from,
http://www.mca.gov.in/MCA21/dca/downloadeforms/Download_eForm_choose.html
Once you fill in the DINs of the promoters of the company, lot of the cells get filled by the auto complete features in the form. This form requires you to fill in any 6 names in order of priority which you would like to keep as the name of the Company. Before short listing the names, you should check if any other Company exists with the same name /similar sounding name ( in same business ) as such names will be out rightly rejected. This can be done at,
http://www.mca.gov.in/DCAPortalWeb/dca/MyMCALogin.do?method=setDefaultProperty&mode=16
Give the names is good thought, so that you can avoid having to make multiple applications. It also requires you to fill in the proposed Authorised Capital, which can be increased while filling for incorporation of the company but cannot be reduced.
Once the form is filled, it must be signed using the digital signature of one of the promoters and than it is ready for submission. You must then register yourself with MCA by creating your username at
http://www.mca.gov.in/MCA21/index.html
Login with username and submit the form online. You will have to pay the application fees of Rs 500 for the form. The site will generate a Service Request Number ( SRN ) which can be used to track the status of the application.
4. Name Approval :
The name of the Company is approved or rejected within the 7 days of the application. You will recieve an email confirmation for the same which will be followed by the letter of allotment of the name by post.
You have now 60 days within which you will have to file for incorporation of the Company. If unable to do so, you can file for an extension of maximum another 30 days.
With the name of the Company approved, the next step is filling for incorporation of the Company which is done by filling the Form 1. 18, and 32.
( Note : Till now only the name of the Company is approved and the Company is still not in existence )
5. Preparing for Filling of Incorporation of the Company :
Filling up the three forms requires some attachment to be submitted along with the Form. So you must first get the below attachments ready.
(i) Memorandum of Association (MoA) : MoA is the most important document of the company as it states what the company can do. If you are qualified enough you can search on internet for samples MoAs and modify the same to suit your requirments otherwise best would be to hire a professional to do it for you.
(ii) Article of Association (AoA) : The AoA states the rules which govern how the Company is run. One can either adopt table A of the Companies Act or make an AoA. Again the AoA can be found on the internet but it is advisable to use the service of a professional to avoid any problem in future.
(iii) Power of Attorney : All the promoters of the Company will have to execute a Power of Attorney on the name of any one of the Promoters authorising him to make all submissions and do all the necessary to incorporate the Company. This document will have to be executed on a Rs100 stamp paper.
(iv) No Objection Certificate : In case of the promoters who filed for approval of the name of the Company in Form 1A are different from the ones filling the Form 1, than an NOC will have to obtained from the orignal promoters that they have no objection in the new promoters incorporating the Company.
Form 1 :
All the four attatchments mention above will have to be attached in Form 1. Form 1 requires you to fill the Authorised capital of the company. Based on that stamp duty payable on Form 1, the MoA and the AoA is automatically calculated by the Form 1. One need not to get the MoA and AoA stamped like the older days as MCA provides a facility of payment of the stamp duty online. Utilise this facility to make things simpler and faster for yourself. The completed form with all the attachments will have to be signed (using digital signature) by the authorised promoter as per the Power of Attorney to apply to ROC (Registrar of Companies) for incorporating the Company.
Form 18 :
This Form mention the registered address of the Company. One will need to mention the address of the Police Station under whose jurisdiction the registered office of the Comapny is situated. The Form will then have to be signed (using digital signature) by the authorised promoter. After the promoter signs the form, it should be signed by a practicing CA/CWA/CS using his/her digital signature.
Form 32 :
This Form requires the details of the Director's, MD, Manager, Secretary etc of the Company. Filling in the DIN automatically fills in most of the Form. If the Director's are required to take qualification shares, then the declaration by the Director's that they acquire the qualification shares and evidence of payment of stamp duty will have to attached in this Form. The Form will then have to be signed (using digital signature) by the authorised promoter. After the promoter signs the Form should be signed by a practicing CA/CWA/CS using his/her signatures.
Filling of Incorporation of the company :
Once all the three forms are ready with all their attachments, you must login to MCA website using your earlier created username and submit all the three forms.
While submitting the forms you will be required to pay the stamp duty and the filing fees. ( Higher the authorised capital as per the MoA, Higher the stamp duty and the filing fees). You are given the option to deposit the amounts in the authorised collection banks.
( http://www.mca.gov.in/MCA21/dca/banks/banks_new.html )
Or the fees can be paid by promoter director by using his credit card. I would suggest using the credit card option payment is done immediately. Paying the fees in any of the authorised banks involves visiting the bank, which are very few in numbers, and visiting the bank again to collect the reciept of the amounts deposited. And the bank also takes a day or two to credit the fees to the account of MCA.
With the form submitted and the fees credited to MCA, you will have to wait till your forms are under process. Again you can use the SRN generated on submitting these forms to keep a track of your application.
ROC generally takes 7 working days to process your forms and if the forms are found complete in all respects, you will recieve the Certificate of Incorporation by email. This will be followed up with the signed copy of the Certificate of Incorporation by post. From the date of Incorporation mentioned in the Certificate, the company is a separate legal entity and if it is a Private Limited Company you can commence business operations immediately. Public Limited Companies need to apply for the Certificate of commencement of Business seperately.
If you just follows the entire process mention above, you can incorporate a Company from the comfort of your home or office without having to visit any of the Government offices even ONCE $$$.
FOR ANY QUERY PLEASE DONT HESITATE TO ASK ME.
How to set up a company in India without having a visit of any Government office.
It sound's great !! isn't it.
Yes, Its true now anyone can register a Company in India and in the entire process of setting up a Company can be done without having a single visit to any of the Government office.
We must appreciate and thanks to Ministry of Corporate affairs ( MCA ) for making the entire process so simple and online.
Just follow the below steps and you are on your way to incorporating a company.
1. Get a DIN :
The first thing you must do is to apply for a Director Identification Number ( DIN ). This can be done through this link
http://www.mca.gov.in/MCA21/dca/din/DIN.html
You need to fill the DIN application form online, pay the fees of Rs 100 and print out the form. On payment of the fees, a temporary DIN is generated along with a Service Request Number ( SRN ). The printed form than will then have to be posted to MCA Delhi office along with attested identification proof and address proof. Within about 3-4 days of receipt of the application by MCA you will receive an email confirmation of allotment of DIN followed by the DIN allotment letter via post.
( Note : DIN will have to acquired for all the persons to be mentioned in Form 1A as proposed promoters)
2. Get a DSC :
While the DIN application is under process, you should apply for a Digital Signature Certificate ( DSC ). The authorities who provide a DSC as approved by the MCA can be found on this page,
http://www.mca.gov.in/MCA21/dca/common/certifying-new.html
You can apply for a digital signature to any of the vendor listed. The cost will depends upon the level of the security you choose for the DSC and the number of years of validity. Again, the form can be filled online at the respective vendor's website, make the payment online and then print the form and submit with your attested identification and address proof. Most vendors will deliver the DSC to you via email itself with instruction as to how to activate it.
( Note : DSC can be acquired for only one of the Director's who will be authorised to make submission to ROC/MCA on behalf of the promoters )
3. Apply for the name of the Company :
Once you have been allotted a DIN and you have a functional DSC, you can apply to MCA to check the availability of the name of the Companyyou want to register. This is done using Form 1A.
This can be downloaded from,
http://www.mca.gov.in/MCA21/dca/downloadeforms/Download_eForm_choose.html
Once you fill in the DINs of the promoters of the company, lot of the cells get filled by the auto complete features in the form. This form requires you to fill in any 6 names in order of priority which you would like to keep as the name of the Company. Before short listing the names, you should check if any other Company exists with the same name /similar sounding name ( in same business ) as such names will be out rightly rejected. This can be done at,
http://www.mca.gov.in/DCAPortalWeb/dca/MyMCALogin.do?method=setDefaultProperty&mode=16
Give the names is good thought, so that you can avoid having to make multiple applications. It also requires you to fill in the proposed Authorised Capital, which can be increased while filling for incorporation of the company but cannot be reduced.
Once the form is filled, it must be signed using the digital signature of one of the promoters and than it is ready for submission. You must then register yourself with MCA by creating your username at
http://www.mca.gov.in/MCA21/index.html
Login with username and submit the form online. You will have to pay the application fees of Rs 500 for the form. The site will generate a Service Request Number ( SRN ) which can be used to track the status of the application.
4. Name Approval :
The name of the Company is approved or rejected within the 7 days of the application. You will recieve an email confirmation for the same which will be followed by the letter of allotment of the name by post.
You have now 60 days within which you will have to file for incorporation of the Company. If unable to do so, you can file for an extension of maximum another 30 days.
With the name of the Company approved, the next step is filling for incorporation of the Company which is done by filling the Form 1. 18, and 32.
( Note : Till now only the name of the Company is approved and the Company is still not in existence )
5. Preparing for Filling of Incorporation of the Company :
Filling up the three forms requires some attachment to be submitted along with the Form. So you must first get the below attachments ready.
(i) Memorandum of Association (MoA) : MoA is the most important document of the company as it states what the company can do. If you are qualified enough you can search on internet for samples MoAs and modify the same to suit your requirments otherwise best would be to hire a professional to do it for you.
(ii) Article of Association (AoA) : The AoA states the rules which govern how the Company is run. One can either adopt table A of the Companies Act or make an AoA. Again the AoA can be found on the internet but it is advisable to use the service of a professional to avoid any problem in future.
(iii) Power of Attorney : All the promoters of the Company will have to execute a Power of Attorney on the name of any one of the Promoters authorising him to make all submissions and do all the necessary to incorporate the Company. This document will have to be executed on a Rs100 stamp paper.
(iv) No Objection Certificate : In case of the promoters who filed for approval of the name of the Company in Form 1A are different from the ones filling the Form 1, than an NOC will have to obtained from the orignal promoters that they have no objection in the new promoters incorporating the Company.
Form 1 :
All the four attatchments mention above will have to be attached in Form 1. Form 1 requires you to fill the Authorised capital of the company. Based on that stamp duty payable on Form 1, the MoA and the AoA is automatically calculated by the Form 1. One need not to get the MoA and AoA stamped like the older days as MCA provides a facility of payment of the stamp duty online. Utilise this facility to make things simpler and faster for yourself. The completed form with all the attachments will have to be signed (using digital signature) by the authorised promoter as per the Power of Attorney to apply to ROC (Registrar of Companies) for incorporating the Company.
Form 18 :
This Form mention the registered address of the Company. One will need to mention the address of the Police Station under whose jurisdiction the registered office of the Comapny is situated. The Form will then have to be signed (using digital signature) by the authorised promoter. After the promoter signs the form, it should be signed by a practicing CA/CWA/CS using his/her digital signature.
Form 32 :
This Form requires the details of the Director's, MD, Manager, Secretary etc of the Company. Filling in the DIN automatically fills in most of the Form. If the Director's are required to take qualification shares, then the declaration by the Director's that they acquire the qualification shares and evidence of payment of stamp duty will have to attached in this Form. The Form will then have to be signed (using digital signature) by the authorised promoter. After the promoter signs the Form should be signed by a practicing CA/CWA/CS using his/her signatures.
Filling of Incorporation of the company :
Once all the three forms are ready with all their attachments, you must login to MCA website using your earlier created username and submit all the three forms.
While submitting the forms you will be required to pay the stamp duty and the filing fees. ( Higher the authorised capital as per the MoA, Higher the stamp duty and the filing fees). You are given the option to deposit the amounts in the authorised collection banks.
( http://www.mca.gov.in/MCA21/dca/banks/banks_new.html )
Or the fees can be paid by promoter director by using his credit card. I would suggest using the credit card option payment is done immediately. Paying the fees in any of the authorised banks involves visiting the bank, which are very few in numbers, and visiting the bank again to collect the reciept of the amounts deposited. And the bank also takes a day or two to credit the fees to the account of MCA.
With the form submitted and the fees credited to MCA, you will have to wait till your forms are under process. Again you can use the SRN generated on submitting these forms to keep a track of your application.
ROC generally takes 7 working days to process your forms and if the forms are found complete in all respects, you will recieve the Certificate of Incorporation by email. This will be followed up with the signed copy of the Certificate of Incorporation by post. From the date of Incorporation mentioned in the Certificate, the company is a separate legal entity and if it is a Private Limited Company you can commence business operations immediately. Public Limited Companies need to apply for the Certificate of commencement of Business seperately.
If you just follows the entire process mention above, you can incorporate a Company from the comfort of your home or office without having to visit any of the Government offices even ONCE $$$.
FOR ANY QUERY PLEASE DONT HESITATE TO ASK ME.
