We are accuprosys and we provide incorporation of a company Hyderabad and corporate legal services in Hyderabad.

1. Getting Your Company
Incorporated: The 101
of Company
Incorporation
A roundup of the basic things every
business owner should know if he is
considering incorporation or is
completely ignorant about it.
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3. Company Incorporation –
The Whats and the Whys
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4. O Why should I get my company
incorporated?
O What kinds of incorporations
exist in India?
O What are the different kinds of
companies?…
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5. Wait!
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6. What you need to know first is what
exactly is business incorporation?
O Incorporation of a company is the process
of creating a new structure for the business
wherein it becomes a legal entity recognized
by law.
O What this means is that it can be treated as a
separate entity from the shareholders and
founders, because of which the liability of its
shareholders is reduced.
O Incorporation is beneficial for the long term
growth and expansion for a business.
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8. Benefiting from
Incorporation
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9. O The incorporation of a company
removes personal liabilities from the
directors, founders and shareholders.
O Therefore, their personal assets are not at
risk and only the company assets are
used to clear debts at times of crises.
O Incorporated companies are taken more
seriously by customers, suppliers and
prospective workers.
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10. The ownership of the business becomes
transferable and the tax liability is also
reduced.
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O The company will
continue to remain
even when the
directors and
members change.
O It is also
advantageous for
those seeking
financial assistance
from banks and other
such financial
institutions.
While sole traders
have to pay income
tax, incorporated
companies have to
pay corporation tax
and enjoy a range of
tax deductible costs
and allowances.

11. As companies can make valid contracts with
its directors and shareholders, an individual
owning a company can also be an
employee director shareholder
lessor supplier creditor
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At the same time!

12. The benefits of incorporation
are different for private and
public limited companies.
Different company categories (public limited, private
limited, part IX, section 25 company and producer
company) have different procedures for incorporation.
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13. Minimum Requirements for
Incorporation
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14. In the case of private
limited company,
For public limited
companies,
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O There should be a
minimum of two
directors and a
minimum paid up
capital of Rs. 1 lakh.
O Private limited
companies raise
capital through private
deposits and
placement of shares.
O There should at least
be seven
subscribers, three
directors and a
minimum paid up
capital of Rs. 5 lakhs.
O Public limited
companies raise
capital from the public
through public
deposits and issuing
of shares.

15. Steps for Incorporating a
Company
Guidelines of the Ministry of Corporate
Affairs, Government of India
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16. Step 1
O Before subscribing for incorporation, a minimum of one and
a maximum of six names should be listed in order of
preference for the company.
O The names should be indicative of the company’s
objectives.
O The names should not resemble that of another registered
company and should also not violate the provisions of
names and emblems as described in the Prevention of
Improper Use Act, 1950.
O The name availability can be checked on the portal at the
link
http://www.mca.gov.in/DCAPortalWeb/dca/MyMCALogin.do
?method=setDefaultProperty&mode=16.
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17. Step 2
O To ascertain the name availability, applicants
should apply to the concerned Registrar of
Companies (RoC) by filling the electronic form
eForm1.
O This is done by logging into the portal. A
digital signature and fee of Rs. 500/- has to be
paid along with the form.
O If a name is not approved, the applicant has to
apply for another name using the same
application.
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18. Step 3
O The applicant has to apply for the registration of the
company after the name has been approved.
O This is to be done by filling forms ‘Declaration of
compliance’ (Form-1), ‘Notice of situation of registered
office of the company’ (Form-18) and ‘Particulars of the
Director's, Manager or Secretary’ (Form-32) within 60 days
on the portal.
O Mandatory documents have to be uploaded along with
these forms.
O Digital signature and registration fee is required to be paid
along with the applications.
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19. Step 4
O After the forms have been submitted, the
applicant has to arrange for drafting of
articles of association by the solicitors and
the memorandum, and get them vetted by
the RoC.
O These have to be printed and stamped
with appropriate stamp duty.
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20. Step 5
O At least two subscribers need to sign the
memorandum and articles in their own
hand, providing their fathers’
name, occupation, address and the
number of shares subscribed for, and
witnessed by at least one person.
O The memorandum and article should be
dated after the stamping date.
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21. Step 7
O A hard copy of the memorandum and
articles is to be sent to the RoC.
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Step 6
O After the application has been processed,
applicants have to collect their Certificate
of Incorporation from RoC and their
Corporate Identity is generated.

22. Step 7
O After the application has been processed,
applicants have to collect their Certificate
of Incorporation from RoC and their
Corporate Identity is generated.
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23. Public limited companies have
to follow additional steps.
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They need to obtain
the Commencement
of Business
Certificate after
incorporation of the
company.
O For this, they have
to file a declaration
in eForm 20 with
the statement in lieu
of the prospectus
(schedule III) or file
a declaration in
eForm 19 with the
prospectus
(schedule II).

24. Part IX companies need to
fill eForm 1 and then eForm
18, eForm 32, eForm 37 and
eForm 39 separately or
simultaneously.
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