Dear Members,
In India, before coming into effect Companies (Incorporation) Amendment Rules, 2015, there was only one route for incorporating a company. Earlier Incorporation of a Company starts from taking Director Identity Number (DIN) and Digital signature certificate (DSC) of proposed directors by Filing DIR-3 form with Ministry of Corpoate Affairs. In DIR-3 we have to enclose self attested copy of PAN and copy of address proof and DIR-4 i.e. affidavit for verification of applicant for application for DIN. Fee for taking one DIN is Rs. 500. After getting DIN and DSC of proposed Directors, We file INC-1 for reservation of name of proposed company with the Registrar of Companies, in which State we want to register the Company. In INC-1, there can be 6 names applied in one form. Fee for filing INC-1 is Rs. 1000. After getting reversation of name , it is vaild for 60 days from the application of INC-1. After getting proposed name of Company, there will be further requirement of filing INC-7 for incorporation of Company other than One Person Company and INC-2 for incorporation of One Person Company. In INC-7, MOA, AOA, Copy of Identity proof and copy of address proof of proposed Directors and PAN of proposed directors and in case Company is subsidiary of any Company, then Board resolution from holding company is also required. With this INC-7 , there is requirement of filing DIR-12 for appointment of directors and INC-22 for notice for situation of registered office. With Form DIR-12 we have to enclose DIR-2 for consent of proposed directors and with INC-22 there is requirement of enclosing Lease deed, Rent Agreement, Sale Deed and utility bills of the same address not older than 2 months. Stamp Duty on MOA and AOA is paid electronically through Ministry of Corporate Affairs. After duly verification of all incorporation documents, Registrar of Companies issues certificate of Incorporation in Form INC-11.
Now after coming into force, the Companies (Incorporation) Amendment Rules, 2015 there is one integrated form prescribed and notified by Ministry of Corporate Affairs INC-29, which covers Issue of DIN, Reservation of name, Incorporation of Company and issue of PAN & TAN at the same time. After notification of E-form INC-29, now there are two routes for incorporation of Company. If we go through this INC-29 route, we do not require to file three forms DIR-3, INC-1 and INC-7 for incorporation. Fee for integrated E-form INC-29 is Rs. 2000. INC-30 and INC-31 is also notified from 1 May, 2015 for standard template of Memorandum of Association and Articles of Association respectively. Earlier INC-10 required to be certified by Notary/ Bank, Now it can be self attested by proposed Director. Now it is hassle free incorporation for every citizen. It is commendable initiative by Government of India and Ministry of Corpoarate affairs. Now a Company can be incorporated with in single day by going through INC-29 route.
This initiative has been appraised by all. It is a long awaited process to simplify to incorporate a Company in India. Our Hon'ble Prime Minister has shown a remarkable change by removing harsh laws for setting up a business in India. His commitment to strengthen Corporate Governance and Disclosure system is big step towards a Make in India. Make in India initiative can only be successful when business start up/ set up will be without any hassle.
This is my first article. Kindly correct me, if you find any wrong information for the above article.
Thanks a Lot
Sudish Kumar Gupta
Advocate
Compliance Professionals Law Firm
CAclubindia
