1. TYPE OF COMPANY The promoters are to decide on the type of the company either it is to be a Public/private company Company limited by share/guarantee with or without share capital/unlimited company
2. STATE The state where the registered office of the company is to be situated is to be decided by the promoter. The determination of state is necessary in ascertaining the REGISTRAR OF COMPANY(RoC) with whom papers for incorporation of company has to be filled
3. NAME OF THE COMPANYA suitable name is to be decided after considering - Requirement of Sec.13, i.e. name to end with the case of public company and private Limited in case of private company having liability. In the case of Sec. 25 Company, the above requirement are dispensed with. Requirement of Sec. 20 i.e. name should not be undesirable or be identical with or too nearly resemble the name of an existing company. Name prohibited under the Emblems and Names (Prevention of improper use) Act, 1950, should not be used.
4. DRAFTING of MEMORANDUM & ARTICLE OF ASSOCIATION Draft the Memorandum and articles of Association in a form prescribed in Schedule1 to Company Act.
5. STAMPING OF MEMORANDUM & ARTICLE OF ASSOCIATION M&A is to be stamped in accordance with the stamp laws prevalent in the State where the registered office of the Company is to be situated.
6. SIGNING OF MEMORANDUM & ARTICLE OF ASSOCIATION The M&A has to be signed by each (7 in case of public company or 2 in case of private company) and add address, description and occupation if any. Company having share capital, each subscriber is to take up atleast one share and state clearly the number and nature of share taken up. The above signature is attested by a witness.
7. POWER OF ATTORNEY In order to fulfill various formalities for registration and making corrections, if any, in the MoA as suggested by RoC, a power of attorney is given in favour of one person by all subscribers on a non judicial stamp paper of value prescribed in the respective State Stamp Laws.
8. DOCUMENTS TO BE FILLED AT THE TIME OF INCORPORATION Memorandum of Association & Article of Association Form 1 duly signed Form 18 dully signed Original letter of name available from RoC Agreement if any, with the person to be appointed as MD Power of Attorney Form 32 in duplicate Fees as per schedule 10
9. CERTIFICATE OF INCORPORATION RoC after being satisfied about compliance of all the above formalities shall retain and register M&A and issue certificate of incorporation. The certificate of incorporation issued by the RoC is conclusive evidence of all requirement of Act and rules there under for formation of the Company.
10. CERTIFICATE OF COMMENCEMENT OF BUSINESS A private company and a company having no share capital can commence business immediately on receipt of certificate of incorporation. A company other than private company and a company having share no share capital can commence business after obtaining a certificate of commencement of business.