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Company FORMATION in india

How to set up business in India Start business in India by company formation in India . The formation, incorporation and operation of companies in India is governed by the Companies Act, 1956 ('the Act'). For commercial joint ventures in India, two types of companies limited by shares can be incorporated, viz; private company and public company. If the purpose is not commercial but to promote art, science or charity, then a company can be incorporated as a guarantee company. Thus foreign investors may incorporate either a private or a public company for commercial venture. For forming public company minimum 7 persons and for a private company minimum 2 persons are required.

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Companies get registered with the Registrar of Companies (ROC), a nodal agency appointed under the provisions of the Companies Act, 1956. The primary duty of ROC is registering companies in the respective states and the Union Territories and ensuring that such companies comply with statutory requirements under the Act.

Steps for Company Formation:

  • Proposed directors of the Company must have a Director's Identification Number (DIN). There are different procedure laid down for obtaining the DIN for resident Indian, Non Resident Indian and Foreign Nationals.

  • The applicant shall have a Digital Signature certificate. Applicant necessarily be one of the subscriber of the Company.

  • Directors and subscribers can be same persons

  • Apply for name availability. Ensure that the name does not resemble the name of any other company already registered.

  • Drafting of the Memorandum of Association and Articles of Association and its stamping with the appropriate stamp duty.

  • Get the Memorandum and Articles signed by atleast two subscribers in case of private limited company and at least seven subscribers in case of public limited company, in his own hand, his father's name, occupation, address and the number of shares subscribed for and witnessed by atleast one person. In case a body corporate is a subscriber, then proper Board Resolution is required authorizing other individual to sign on its behalf.

  • Vetting of the Memorandum and Articles by ROC

  • Get the following documents duly filled up and signed:-
  • Declaration of compliance

    Notice of situation of registered office of the company.

    Particulars of Director, Manager or Secretary.

    Present the entire incorporation documents with ROC with filing fee and registration fee.

  • Obtain Certificate of Incorporation from ROC.




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