If you wish to establish a new company in India, you need to follow some procedures in order to get your desired company to formally register in the register of companies. A Company Registration is essential for its functions as an unregistered company is not deemed as a separate legal entity and is not guarded against any formal grievances either. Hence, in order to function successfully, you need to perform the below-mentioned procedures as marked in the Companies Act,2013.
Steps for Incorporation of the company
- Choosing an appropriate name
First and foremost, you would need to choose a name for your proposed company which indicates the main objects or purpose of the company. You need to ensure that the name(s) you have chosen does not resemble the name of any other existing and registered company. Also, the preferred names must not violate the provisions of the Prevention of Improper Use Act, 1950. For ensuring the availability of a name, you can use the online portal of the Ministry of Corporate Affairs for the Incorporation of companies.
- Applying for the name
After you have selected the names (up to a maximum of six), you would need to arrange them in order of preference. When this is done, apply for the availability of the company name to the concerned Registrar of Companies using Form1 A, costing a fee of Rs. 500/- In case the name is not available, the applicant has to reapply with a new name on the same application.
- Applying for registration
After the RoC approves the name, the applicant has to file for registration of the company within 60 days by filing the relevant forms (Form 1, 18 and 32).
- Arranging MoA and AoA
For Company Registration, one needs to arrange a number of documents such as the Memorandum and Articles of association by the needed solicitors. The Memorandum and Articles of association need to be signed by a minimum of two subscribers with relevant details such as his/her father’s name, address and occupation, the number of shares they are subscribing to and the acknowledgment of a witness. These documents are then duly stamped and need to approve by the RoC.
- Filing documents
The applicant needs to file the following forms along with required documents as instructed in each form:
- Form 1
- Form 18
- Form 32
After you have filed these forms, pay the required fees and send over the physical copy of Memorandum of Association and Article of Association to the RoC.
After all the forms are processed and approved, the applicant would receive the Certificate of Incorporation from the RoC which proves the corporate identity of the incorporated company.
- Obtaining commencement of Business certificate for Public Limited companies
Additional steps need to be performed by the Public limited companies to commence their business. For this purpose, they need to obtain the Certificate for commencement of business. For obtaining this certificate, they need to file a declaration in Form 20 and attach a statement in lieu of the schedule III of the prospectus or file Form 19 with the attached schedule II prospectus. After the forms are approved, the certificate would be generated.
- Additional steps for a Part IX Company
A Part IX Company has to file the Form 37 and Form 39 additional to the filing of Form 1,8 and 32. The company is needed to file Form 1 and then Forms 18, 32, 37 and 39 separately or simultaneously.
Once, all these procedures are duly performed and are respectively approved by the RoC, the company would obtain a legal and corporate identity.