Procedure of Company Incorporation
Step
1: Obtain Director’s Identification No.
Time
Taken: 1 day
Directors
of an Indian company have to register and get the identification number which
is called Director Identification Number or DIN. It can be obtained by filing
Application form DIN-1. The provisional DIN is immediately issued. All the
documents are verified by the concerned authority and thereafter a permanent
DIN is issued. The entire process takes about 4 weeks.
Step
2: Obtain Digital Signature Certificate:
Time
taken: 1-6 days
Directors
are also required to get Digital Signature Certificate or DSC. Digital
Signature Certificate (DSC) is required for all Directors or authorized
representatives of the company and professionals who will be required to sign
ROC forms or documents. This certificate can be obtained from one of six
private agencies authorized by MCA such as Tata Consultancy Services. Company
directors submit the prescribed application form along with proof of identity
and address. Each agency has its own fee structure, ranging from INR 400 to INR
2650.
Step
3: Registration of Company Name
Time
to complete: 2-3 days
The
name of the company should be registered by the Registrar of Companies of the
state where the registered office of the company will be located. The
application should mention at least four names in order of preference. There
should not be an existing company by the same name. Further, the last words in
the name are required to be "Private Ltd." in the case of a private
company and "Limited" in the case of a Public Company. The ROC
generally informs the applicant within seven days from the date of submission
of the application, about the availability of the desired name. After obtaining
the name approval, it normally takes approximately two to three weeks to
incorporate a company.
Step
4: Stamping of Company Documents
Time
to complete: 1 day
Cost
to complete: INR 1,300 which includes INR 200 for MOA + INR 1000 for AOA for
every INR 500, 000 of share capital held by the company and also INR 100 for
the stamp paper for declaration.
The
Memorandum of Association and Articles of Association are the most important
documents to be submitted to the ROC for the purpose of incorporation of a
company. The Memorandum of Association is a document that states the
constitution of the company, objectives, scope of activities of the company and
also defines the relationship of the company with the outside world. The
Articles of Association contain the rules and regulations of the company for
the management of its internal affairs. These documents should be stamped and
submitted to the ROC along with relevant forms and registration fee.
Step
5: Get the Certificate of Incorporation
Time:
3 to 7 days
The
ROC scrutinizes the documents and, if necessary, instructs the authorised
person to make necessary corrections. Thereafter, a Certificate of
Incorporation is issued by the ROC, from which date the company comes into
existence. It takes one to two weeks from the date of filing of the Memorandum
of Association and Articles of Association to receive a Certificate of
Incorporation. Although a private company can commence business immediately
after receiving the certificate of incorporation, a public company cannot do so
until it obtains a Certificate of Commencement of Business from the ROC.
