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Incorporation of Co

Shreya A. Dhende (Company Secretary) (64 Points)

04 December 2010

Dear Members,

I want to incorporate a private limited company which will have a main object of to invest in and acquire and hold shares, stocks, debentures, debenture stock, bonds, obligation or securities of companies.

Can it will be a NBFC company?

If yes what is the procedure for incorporation of NBFC company?

Thanks in Advance.

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3 Replies

HARDIK (COMPANY SECRETARY NCFM (Corporate Governance )) (664 Points)
Replied 04 December 2010

Hi if you have to incorporate NBFC then your minimum capital will be 2 crore. and require to obtain certificate from NBFC. From your explantion your business related to trade in shares and securities of various companies thats not NBFC.

Sunali (Learner) (1317 Points)
Replied 04 December 2010

Hi Shreya, As per the main objects of the company it will not be a NBFC since

Non-Banking Financial Company - NBFC
NBFCs do offer all sorts of banking services, such as loans and credit facilities, retirement planning, money markets, underwriting, and merger activites. The number of non-banking financial companies has expanded greatly in the last several years as venture capital companies, retail and industrial companies have entered the lending business.

Source: Investopedia

and will be an Investment Company.

The procedure of incorporation of the company is as under:-

Steps to be taken to get a new company incorporated:

Select, in order of preference, at least one suitable name upto a maximum of six names, indicative of the main objects of the company.
Ensure that the name does not resemble the name of any other already registered company and also does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950) by availing the services of checking name availability on the portal.
Apply to the concerned RoC to ascertain the availability of name in eForm1 A by logging in to the portal. A fee of Rs. 500/- has to be paid alongside and the digital signature of the applicant proposing the company has to be attached in the form. If proposed name is not available, the user has apply for a fresh name on the same application.
After the name approval the applicant can apply for registration of the new company by filing the required forms (that is Form 1, 18 and 32) within 60 days of name approval
Arrange for the drafting of the memorandum and articles of association by the solicitors, vetting of the same by RoC and printing of the same.
Arrange for stamping of the memorandum and aticles with the appropriate stamp duty.
Get the Memorandum and the Articles signed by at least two subscribers in his/her own hand, his/her father's name, occupation, address and the number of shares subscribed for and witnessed by at least one person.
Ensure that the Memorandum and Article is dated on a date after the date of stamping.
Login to the portal and fill the following forms and attach the mandatory documents listed in the eForm

Declaration of compliance - Form-1
Notice of situation of registered office of the company - Form-18.
Particulars of the Director's, Manager or Secretary - Form-32.

Submit the following eForms after attaching the digital signature, pay the requisite filing and registration fees and send the physical copy of Memorandum and Article of Association to the RoC

After processing of the Form is complete and Corporate Identity is generated obtain Certificate of Incorporation from RoC.

Additional steps to be taken for formation of a Public Limited Company:
To obtain Commencement of Business Certificate after incorporation of the company the public company has to make following compliance

File a declaration in eForm 20 and attach the statement in lieu of the prospectus(schedule III) OR
File a declaration in eForm 19 and attach the prospectus (Schedule II) to it.
Obtain the Certificate of Commencement of Business.

Additional steps to be taken for registration of a Part IX Company:
The Part IX Company is required to file eForm 37 and eForm 39 apart from filing eForm 1, 18 and 32.

The company is required to file eForm 1 first and then the company can file all the other eForms (18, 32, 37 and 39) simultaneously or separately.

Source: www.mca.gov.in

I have also attached a reference file for ease of understanding the procedure.

ALL THE BEST.

Attached File : 32 formation of indian company.pdf downloaded: 207 times