company registration process and formalities

1. COMPANY REGISTRATION

2. Definition
▶ Companies Act, 2013, defines the term ‘Company’ as follows:
“Company means a company incorporated under this Act or under any
previous company law.”

3. Introduction
In India, there are about 7 lacks registered companies and
every month thousands of firms apply for registration.
Under the ministry of corporate affairs, every company is to
be registered by the registrar of companies for the state.
This act maintains two types of companies called private
and public companies.
The ‘Limited’ is the most commonly used corporate form at
the end of the company name.

4. Two choices during company registration:
▶ Private company: Company,
whose shares may not be
offered to the public for sale
and which operates under
legal requirements less strict
than those for a public
company.
▶ Public company: Company,
whose shares are traded
freely on a stock exchange.

5. Differences Private company Public company
Minimum number of
Board members
Two Seven
Number of members Maximum only 50
members
Any number of members
Starts its business As soon as its in
cooperated.
Until it receives
business
commencement
certificate.
Sells its shares Shouldn’t sell it’s shares
to anyone or shouldn’t
make any invitation to
people
Can invite people to buy
its shares
Number of directors Two Three
Differences between Private and Public
companies

6. Steps for registering a company in India
Step 1: Acquire Director
Identification Number(DIN).
Step 2: Acquire Digital
Signature Certificate(DSC).
Step 3: Create a account on MCA
Portal – New user registration.
Step 4: Apply for the company
to be registered

7. Step 1: Acquire Director Identification
Number(DIN):-
 Each director of the company should obtain their identification number.
 As per the Amendment act 2006, acquiring a DIN is compulsory for every
director.
 To get DIN one need to file a eForm DIN-1. The form is available on Official site
of the ministry of corporate affairs.
 Register yourself on MCA Website first and have a login id. After filling DIN-1
Form, one should upload the filled form by clicking to eForm upload button on
MCA website and should pay applicable fees.
 Then company should intimate the Registrar of Corporates(ROC) about all
director’s DIN through DIN-3 Form.

8. Step 2: Acquire Digital Signature
Certificate(DSC)
 To ensure the security or authenticity of documents filed electronically the Information act,
demands a valid digital signature on the documents.
 The digital signature certificate should be acquired by only those agencies which are appointed
by the controller of certification agencies (CCA).
 One should not use Digital signature certificate (DSC) given by any other agency which is not
approved and it’s illegal to use others DSC as yours or the false one.
 If you already have a digital signature then you can use the same.But,check for your digital
signature validity, agencies issue DSC’s with one or two year validity after expiry you have to
renew it.
 One can acquire his/her Digital Signature certificates from these government listed agencies like
TCS, IDBRT, MTNL, SAFESCRYPT, NIC, nCODE Solutions etc.

9. Step 3: Create a account on MCA Portal – New
user registration
 Its about having a registered user
account on MCA Portal for filing a
eForm, for online fee payment,
for different transactions as
registered and business user.
 Creating an account is totally free
of cost.
 To register yourself on the MCA
portal, click on the register link.

10. Step 4: Apply for the company to be
registered
▶ This is the final major step in a registration of your company which includes
incorporating company name, Registering the office address or notice of
situation of office and notice for appointment of company directors, manager
and secretary.
 And also regarding the take and pay for their qualification shares.

11. Types of Forms
▶ Form-1A: Application form for availability or change of a company name.
Once you apply for new company name, the MCA will suggest four different
form of your company name; you have to choose one among them. To do the
same you have you have to fill Form-1A and submit.
▶ Form-1: This is for application or declaration for incorporation of a company,
in this form you have to fill the same name which you have chosen during
application of form-1A.
▶ Form-18:This form is for notice of the situation of a new company office or
change of situation of previously registered office.

12. Form-32:
▶ For a new company, this form is for notice for appointment of new Directors,
Managers and Secretary.
▶ For an existing company, this form is for a change of directors, Manger,
Secretary or company head.
▶ After submitting these forms, once the application has been approved by
MCA, you will receive a confirmation email regarding the application for
incorporation of a new company, and the status of the form will get changed
to Approved.

13. Detailed procedure for approval of the
proposed company name:
▶ For obtaining name for your new company, An application in Form-1A needs to
be filed with the Registrar of Companies (ROC) of the state in which the
Registered Office of the proposed Company is to be situated to ascertain the
availability of a name along with an official service fee of Rs.500/-.
▶ You have to provide four alternative names for the proposed company. Your
company name shall not resemble the name of any other company already
registered or violate the provisions according to Act, 1950.

14. ▶ In this form you have to fill name and addresses of directors (minimum 2 for a
private company and 7 for a public company). You have to mention main
objects of the company and authorized capital.
▶ In about 10 days, the ROC will inform you about approval or objections. If
there are any objections then ROC will suggest you with some available names
and let you choose among them. If your company name is approved then you
will receive a formal letter regarding the confirmation of the same. Keep the
same which will be required during registration process of the proposed
company.

15. Documents required before submission
 DIN of all those directors of a proposed company.
 DSC – Digital Signature Certificate
 Original copy the of formal letter issued by ROC regarding availability of
Company name.
 Form-1 for incorporation of a company.
 Form-18 for situation or address of the proposed company.
 Form-32 for particulars of proposed directors, managers and secretary.

16. Formalities to be followed while
incorporation of a company:
 Obtain a TAN card
 Obtain a Permanent account number (PAN) from income tax dept. India
 If required: Documents obeying shop and establishment acts.
 If required: For foreign trade, Registration documents of import export code
from Director General of foreign trade.
 If required: Registration documents of Software technologies Parks of India
(STPI).
 If required: RBI approval for foreign companies investing in India and FIPB
approval.
 Both Indian and foreign directors need to have valid Digital Signature
Certificates from authorized agencies.