COMPANY REGISTRATION PROCEDURE IN INDIA (The Companies Act, 2013)
1. DIGITAL SIGNATURES: A digital code (generated and authenticated electronically by competent authorities), which can be attached to an electronic document in order to verify the applicant identity.
In simple words, it can be understand as a signature, which is done electronically. We all do Manual signatures by Pen, but we cannot sign on computers, therefore, to sign any electronic document we need a digital signature.
Digital signatures are also protected with the PIN. It generally takes 1-2 days with a cost Rs.800 to 1500.
2. DIRECTOR IDENTIFICATION NUMBER (DIN): It is a unique Identification Number allotted to an individual who is an existing director of a company or intends to be appointed as director of a company.
In simple words, just like a PAN, DIN is also unique allotted to every individual.
DIN generally takes 2 hours to 1 day. DIN instantly allotted upon form uploading. The cost of DIN is Rs.500.
DIN is an eight-digit number allotted to every director. No person can become a director without first applying for DIN.
3. NAME APPROVAL: Every proposed company has to first apply for the name. The name should be unique and should not resemble with any existing company. Uniqueness of the name can be verified from http://www.mca.gov.in/DCAPortalWeb/dca/MyMCALogin.do? method=setDefaultProperty&mode=16 .
Name approval generally takes 3 to 10 days. It actually depends upon MCA for approval. It cost Rs.1000. Every allotted name is valid for 60 days. Therefore the further actions should be completed or initiated within 60 days.
4. DRAFT MEMORANDUM OF ASSOCIATION (MOA) AND ARTICLES OF ASSOCIATION (AOA): Every Company has to draft MOA and AOA. MOA states the company’s proposed objective for which company is being incorporated.
AOA states the company’s legal policies for its operations. They are to be drafted and to be filed by the applicants in the next step to the ROC.
5. APPLY FOR INCORPORATION CERTIFICATE: After MOA, AOA drafting, in this step, applicant shall apply for incorporation through form INC 7 or INC 2 (in case of OPC). This will be the detailed form, which will include all the information about the subscriber and directors (DIR 12).
Each subscriber shall submit his copy of PAN card, Identity proof and any one of the following:
- Electricity bill
-Telephone bill
- Mobile Bill
- Bank statement
Form is also required to certify with the professional and it should be in the form of affidavit printed duly on a stamp paper.
With the documents attached INC 7 is filed on payment of prescribed fees (including stamp duty), which actually depends upon the share capital and type of company registered.
Approval generally takes 3 to 10 days.
6. REGISTER YOUR OFFICE AND MAKE A SEAL: After applying for the registration, registered office is to be confirmed to the ROC within 30 days of the incorporation.
Author is a practicing Chartered Accountant. For further details you may contact on bmohit02@gmail.com
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