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How to Start a Company in India (6 Easy Steps)? Starteazy.in

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How to Start a Company in India (6 Easy Steps)? Starteazy.in
By: Kartik Chhabra
July 5, 2021
All Articles by: Kartik Chhabra       View Profile
  • Contents

In India, Companies act, 2013 is the act which governs the working of companies and tells a person how to start a company. Following the passing of this act by Parliament, it received Presidential assent in the year 2013. This Act relates to consolidating and amending the law which governs the companies. Below mentioned points takes you through the process of how to start a company in India. You can apply through any method like company registration online or offline. And also it is always best to find an auspicious day to start business.

Formation of company:

1. A company forms for any lawful purpose by:

• If public company - 7 or more person as members; or

• If private company - 2 or more person as members; or

• If One person company - 1 person as member.

2. A person can form any company from the given 3 types: A company which limits by shares, A company which limits by guarantee, or a one with no such limits.

3. The subscribers/directors should possess a (DSC) Digital signature certificate.

4. Procedure For Incorporation:

TYPE OF COMPANY: For incorporation process, choosing the type of company is the first and foremost step to begin the process and know how to start a company. Subsequently there are different types of companies as per the requirements of the business such as One person company (OPC), Private company, Public company, Non-profit organization etc.

NO. OF DIRECTORS: A public company requires minimum 3 directors, whereas a private company requires 2, and a OPC requires 1. Furthermore the maximum no. Of directors in any company shall be 15.

A person should possesses a Director Identification Number (DIN) in order to be appointed as director in a company. SPICe + or DIR-3 form provides facility for application for DIN. Also at least  one director should be a Indian citizen/resident of India.

RESERVATION OF NAME: The company requires to reserve a name at the time of its incorporation. SPICe + Part-A form provides facility for reservation of name. The SPICe+ form can be filed in a consolidated form as well along with Part-B, but it is advisable to take name approval before filing the complete incorporation documents in order to avoid inconvenience.

The ROC reserves the name for 20 days from the date it has been granted approval, if all documents and requirements are in place.

DOCUMENTS FOR REGISTRATION: Applicant has to fill the "SPICe +" INC-32 and the following documents with the Registrar of Companies to incorporate the company within 20 days from the intimation of reservation of name given by the registrar.

SPICe+ provides for filing the electronic Memorandum of Association (e MOA - INC 33). In case of Foreign subscribers, they shall execute and attach physical MOA. Also, SPICe + allows filing of electronic Articles of Association (e AOA- INC 34) .

Provided that if any of the objects of a company as mentioned in the MOA are subject to any registration or approval from sectoral regulators such as Reserve Bank of India, Securities and Exchange Board. The promoters shall obtain approval from such regulators and give declaration in this behalf at the stage of incorporation. In addition the promoters shall also submit following documents:

• Declaration in form INC-9 by each of the subscribers to the MOA, and also the first directors, if any. The affidavit must confirm that:

1. In connection with the incorporation or management of the company, they are not convicts of any offense.

2. During the preceding five years, they have not been guilty of any fraud under any company's law.

3. All the information filed with the ROC is absolutely correct and true as per their knowledge.

• DIR-2: In addition, a declaration shall be submitted from first directors which shall also include a copy of identity proof (PAN card/ Passport for foreign national), passport size photograph and residential address (All documents should be self attested).

• Along with Non-objection Certificate(NOC) from the registered owner of the property who is the true and registered owner of the proposed registered office of the company. a NOC from original subscribers in case of change in subscribers.

• Moreover proof of office address which may include copy of Conveyance/Lease/rent deed as well as receipts, Copy of utility bills which shall not be older than 3 months.

• Also the correspondence address till the registered office is established.

5. Certificate Of Incorporation: This tells you how to start a company, Upon being satisfied that all the information and forms filed are in order, the ROC issues the certificate of incorporation to the company in Form INC-11, which shall mention Permanent account no.(PAN) and shall also include Corporate Identity number (CIN) of the company.

The certificate of incorporation shall be irrefutable evidence that the Company has been registered after complying with all compliances with respect of registration.

Subsequently the company shall mention and maintain copies of all documents which were initially filed on registration at its registered office.

6. Also a company which has share capital is to file a declaration on receipt of subscription amount and also verification of registered office prior to commencement of business and within 182 days of incorporation.

A company shall stand registered successfully upon completion of the above mentioned steps. The filing of all the documents and the forms shall be on the web portal of Ministry of Corporate affairs(MCA). Following which they shall be confirmed to be submitted, upon a receipt of challan for the same from MCA.

Furthermore some additional compliances:

• The incorporation of companies which have taken effect from 15 February 2020, are compulsorily required to undergo registration for EPFO and ESIC alongside incorporation through form SPICe +.

• Agile-Pro form shall be filed to open the Company’s Bank account for all companies incorporated through SPICe + forms.

All the above information is all you need to know how to start a company easily in India.

By Shreya Durgan

 

By: Kartik Chhabra - July 5, 2021

 

 

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