How to incorporate the company in India

www.carajput.com; Incorporation of Company

www.carajput.com; Incorporation of Company

Steps for incorporating the company:-

  • The first step of getting a company incorporated is obtaining the approval of the name from Registrar of Companies. A company may adopt any name which is not prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950. The government has launched a web service RUN (Reserve Unique Name) for reserving the name of a proposed company. We can directly submit the application for reserving name online within few minutes (there is no requirement to download e-form like INC-1, and attaching DSC), has been launched for reserving the name of a new company or for change in name of the existing company earlier there was INC-1 for reservation of name of the new company or for change in name of the existing company. Application form fee shall be Rs.1000/- perform for reservation of name by using RUN web-form.

                    APPROVED NAME IS VALID FOR A PERIOD OF:

20 days from the date of approval (in case name is being reserved for a new company) or

60 days from the date of approval (in case of change of name of an existing company)

  • The preparation of MOA is the next step in the incorporation of a company. It is the law of the company, which states its objects and scope and the company’s relation with the outside world.
  • Other than MOA, the promoters will also prepare the AOA of the company. It contains rules and regulations relating to the internal management of the company.

Following other documents are also prepared:

  • Taking consent from directors and filed it with ROC.
  • Promoters have to execute the power of attorney in favor of one of them.
  • Form of DIN, PAN & TAN.
  • Form for the first director.
  • Form for the address of the registered office.
  • At the time of registration, prescribed registration fees and the filing fees for each document filed for registration are to be paid at the Registrar’s office.

Also, we can incorporate a company in India through the

 Simplified Performa for Incorporation Company Electronically (SPICE)

MCA will bring new specified procedures for incorporation of a company under the companies act, 2013. Ministry of corporate affairs introduces E- Form INC-32 by a notification under the SPICE Scheme. SPICE means Simplified Performa for Incorporating Company Electronically.

The SPICE form will be introduced to bring the facility of preparing Electronic MOA & Electronic AOA. This facility is introduced first time in Indian history for the incorporation of the company. Now there is no need to prepare manual MOA & AOA.

Before of this SPICE form if any person wants to incorporate any company then he has to apply by filing a different form for DIN, PAN, TAN, approval of name availability, registered office address, first director form, etc.

Now it is mandatory to file E-Form INC-32 for the incorporation of a company in India. If the company is a Producer Company and having more than 7 subscribers then E-Form INC-7 has to be filled and if subscribers of Producer Company are less than 7 then it has to file E-Form INC-32 for incorporation.

According to the notification given by MCA, companies who are incorporated by filing E-Form INC-32 then that company cannot incorporate by filing E-Form INC-7 on or after 29th December 2016. So, it is compulsory to file E-Form INC-32 for the incorporation of the company from the date 29 December 2016.

SPICE Form (INC-32) has the following features:-

  • The maximum number of allowed subscribers is seven. If subscribers are more than seven then E-Form INC-7 is filled and normal incorporation procedures of E-Form INC-7 are applied.
  • A maximum of twenty directors is allowed.
  • Maximum three directors are allowed for filing application for Director Identification Number.
  • In this form name of the company can also be applied.
  • DSC of the subscriber is affixed on the INC-33 (E-MOA) For automatically generating the date of the sign by the form.
  • Applying for PAN / TAN will be compulsory for all the companies that are incorporated through the SPICE form.

Following difficulties are faced while filing SPICE Form (INC-32):-

  • For foreign subscribers, it is difficult to incorporate the company without violating rule 13 of the companies’ rules, 2014.
  • If the company name is approved already in E-Form INC-1 then whether the company can apply for incorporation in E-Form INC-32 or not
  • If both the person doesn’t have DIN No. whether they can apply for the incorporation of Company. Or one person mandatorily requires having DIN for filing of this form
  • For the incorporation of the producer company, this form is filled or not.
  • If any company wants to incorporate through INC-7 then how the company can do so.

Following documents are attached with the SPICE E-Form (INC-32):-

  1. E-MOA & E-AOA required to be attached.
  2. INC-9 Affidavit and declaration by first subscriber and director (on duly authorized Stamp Papers).
  3. DIR-2 declaration from first Directors along with Copy of Proof of Identity and residential address.
  4. NOC from the owner of the property.
  5. Proof of Office address (Conveyance/ Lease deed/ Rent Agreement etc. along with rent receipts);
  6. Copy of the utility bills (not older than two months)
  7. Declaration from the director non acceptance of Deposit. (On duly authorized Stamp Papers).
  8. In the case of subscribers/ Director does not have a DIN, it is compulsory to attach Proof of identity and residential address of the subscribers
  9. E- 49A and E-49B will be filed through the MCA website (filed form will be generated by the SRN of INC-33 E-MOA).

Incorporate a new company in a progressive country like India and take the following benefits:-

  • In-country like India, you have complete ownership of your company.
  • You can also take exemption from taxes in startups companies if eligible.
  • For the foreign person, one special benefit is he does not have to require physically present in India he can operate from outside India except one time present at the time of incorporation.
  • For incorporation, you have to open a bank account and you have the benefit that ownership of the bank account is your own company name.
  • In-country like India, the Privacy of your all operations is maintained.
  • Annual fees are nominal in India.
  • You have permission to be traded in foreign or can do international business easily.
  • You can purchase properties in India in your company name.
  • Even you can easily set up the operation of an international company.
  • For foreign people, one more benefit is they can easily get a business visa for Indian residency.

You can get the above benefits by incorporating your entity in a progressive country like India and also you can get extra benefits in setting up your corporate bank account easily through Rajput Jain& associates.

How Rajput Jain & Associates offers services for helping you information of the company in India it is a one-step solution for you:-

  • Get the most comprehensive and perfect Company Formation advice.
  • Helping in set-up your branch company out from your Global entity structure easily.
  • Helping in getting your Commercial License and acquire your India residence visa
  • You can take advantage of Accounting & GST / Tax Consultancy & Advisory Services
  • Easily get Tax Agency Appointment
  • You can get easily perfect Financial Auditor for your existing company
  • You can get all the services before and after the incorporation of company.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)