Procedure for Incorporation of Company in India

Incorporation of company in India is a legal process, which is imperative to accomplish to form a corporate entity or a company. According to the law, an incorporated company is a separate legal entity that can be identified with terms like ‘Inc’ or ‘Limited’ with their name. A “Limited” or “Inc” company becomes a corporate legal entity, which is fully separate from its owners. According to Company Act 2013, to get company incorporation certificate, following steps need to be followed:

Choosing an appropriate name is the first step for incorporation of company in India. According to the registered name, the company gets identification and fame in the market. To check the availability of the chosen name of the company for adoption, along with the fee of Rs. 500/- the promoters have to write an application to the Registrar of Companies of the State, in which the company is to be situated. A company may adopt any name, but it should not be prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950. And the chosen name should not be identical or closely resemble with name of any company, which is already registered.

Generally, the Registrar of the state approves the name within 14 days of receipt of the application. According to the intimated date by the Registrar, the proposed name must be registered within three months. In case of any failure, the promoters will have to apply again to the Registrar for the revalidation of the approval.

The preparation of the Memorandum of Association is the next step to get company incorporation certificate. Memorandum is the constitution of the company, which describes the company’s objective, scope, and vision. In case of a public limited company, the memorandum is to be signed by at least seven persons; while in case of a private limited company; the memorandum is to be signed by at least two persons.

The preparation of Articles of Association is the next step in the incorporation of company in India. It is a document in which rules, regulations, and internal management of the company are prepared. For the public limited company, it is not imperative to file its own Articles of Association; it may adopt model clauses prescribed in Table A, Schedule 1 of the Act. But for the private limited company, it is mandatory to file its own article of association duly signed by the signatories.

Besides the above documents, promoters also prepare the following documents at the time of incorporation of the company.

• Comprehensive help regarding PAN, TAN, DIN, and the Digital Signatures.
• The consent of the directors (e-Form No.32), and filed with the registrar of the company.
• Promoter should execute the Power of Attorney. Person who has power of attorney, he/ she has the authority to make changes in the memorandum and other documents that have been filed with the registrar.
• The company should have a registered office and its information is filed with the Registrar within 30 days of its registration or from the date of commencement of business (e-Form No.18).
• A statutory declaration in (e-Form No.1), that all legal requirements for registration have been followed with the Registrar at the time of registration. The statutory declaration must be signed by an advocate of the Supreme Court or High Court or an attorney or pleader of High Court or a practicing Chartered Accountant.

At the time of registration, the prescribed fee for registration and filing for each document is to be paid at the Registrar’s office. Although, the fee to be paid varies according to the nominal capital of the company with share capital.

After filing all the required documents with the requisite fee to the Registrar, all the documents again pass through meticulous scrutiny. And if all documents are found in order and correct, Registrar enters the name of the company in the Register of Companies and issues a Certificate of Incorporation.