Company law

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Nitesh Nirala (Querist)

25 July 2014 Dear Sir

Sir, i want to create a company in the name of ''sone shine india pvt.ltd.''
what is legal requirement to be fulfilled.

Ankur Garg

Ankur Garg (Expert)

25 July 2014 Procedure for the Formation of a Private Company [CA, 2013]

1. Obtain Digital Signatures

Nowadays every document prescribed under the Companies Act, 2013 is required to be filed with the digital signature of the managing director or director or manager or secretary of the Company, therefore, it is compulsorily required to Obtain a Digital Signature Certificate from authorized DSC issuing authority for at least one director to sign the E-forms related to incorporate like form INC.1 and other documents.

2. Obtain Director Identification Number [Section 153]

As per 153 of the Companies Act, 2013, every individual intending to be appointed as director of a company shall make an application for allotment of Director Identification Number in form DIR.3 to the Central Government in such form and manner and along with such fees as may be prescribed.

Therefore, before submission of e-Form INC.1 for availability of name, all the directors of the proposed company must ensure that they are having DIN and if they are not having DIN, it should be first obtained.

3. Name availability for proposed company

As per section 4(4), an application for the reservation/availability of a name shall be in Form no. INC.1 along with fee of Rs. 1,000/-. [Rule-9]

Note: MCA has prescribed certain rules for name availability so it is advisable to check guidelines for the same before applying for name.

The ROC will issue a Name availability letter w.r.t. approval for availability of name for a proposed company.

Validity of Name: As per section 4(5), maximum time for which name will be available has been prescribed in the law itself under section 4(5). The name will be valid for a period of 60 Days from the date on which the application for Reservation was made.

Note: The applicant cannot start business or enter into any agreement, contract, etc. in the name of the proposed company until and unless a certificate of registration is issued by the registrar of companies as per the provisions of the Companies Act, 2013 and the rules made there under.

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