“Discover the comprehensive process for incorporating a company in India under the Companies Act, 2013. Learn the steps, from obtaining Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) to name reservation, filing incorporation documents, paying registration fees, RoC approval, obtaining PAN/TAN, and commencement of business. Navigate the complexities with expert guidance for a smooth company formation.”
Incorporating a company in India is governed by the Companies Act, 2013, and the process includes several vital steps, ranging from obtaining digital signatures to applying for specific identification numbers.
Obtain Digital Signature Certificate (DSC): The incorporation process commences with acquiring a Digital Signature Certificate (DSC) for the proposed directors of the company. A DSC is a form of electronic signature that affirms the identity of the signatory and secures electronic documents. It’s mandatory for the proposed directors to use a DSC while filing e-forms for company formation. In India, DSCs are issued by government recognized Certified Authorities.
Obtain Director Identification Number (DIN): The next stage involves obtaining a Director Identification Number (DIN) for the proposed directors from the Ministry of Corporate Affairs (MCA). A DIN is a unique eight-digit number allotted to individuals allowing them to become directors in a company. The application to obtain DIN must include the individual’s name, father’s name, date of birth, gender, nationality, residential status, and personal identification details, along with a proof of identity and residential proof.
Name Reservation: The following step is to apply for the reservation of the proposed company’s name. This application is processed through the Reserve Unique Name (RUN) web service offered by the MCA. The proposed name must be unique, not similar to existing company names or trademarks, and in compliance with the MCA’s naming guidelines.
Prepare and File Incorporation Documents: Following the approval of the name, a series of documents need to be drafted and filed with the Registrar of Companies (RoC). The set includes:
- Memorandum of Association (MoA): This document lays out the company’s constitution and the scope of permissible activities. It includes the name of the company, state of registered office, liability of members, objectives, and capital of the company.
- Articles of Association (AoA): This represents the company’s by-laws, covering comprehensive provisions regarding the company’s operations and management.
- Declaration and affidavit by first directors and subscribers: These documents confirm the willingness and authenticity of the first directors and the subscribers to the MoA.
- Consent and appointment letters of the first directors: These are letters from each director consenting to act as director and disclosing their directorship in other companies.
- Address proof and identity proof: These documents establish the identities and residential status of the directors and subscribers.
- Address proof of the registered office: This is evidence of the existence of the company’s registered office.
Pay Registration Fees: The prescribed registration fees, determined by the company’s authorized capital, must be paid to the MCA. This can be done online.
Verification and Approval: Following document submission and fee payment, the RoC verifies the documents and, if required, seeks additional information or clarifications. If the RoC is satisfied, it issues a Certificate of Incorporation (CoI), including a unique Corporate Identification Number (CIN). The CoI is the final confirmation of the company’s official registration.
Obtain Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN): After CoI issuance, the company must apply for a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN) from the Income Tax Department. These are essential for tax-related activities.
Commencement of Business: If the company intends to start its business activities immediately upon incorporation, it must file a declaration of commencement of business with the RoC within a stipulated period.
It is advisable to consult with a professional like a company secretary or lawyer to ensure compliance with all legal and regulatory requirements.
Author Bio
I want to incorporate a pvt ltd co., which is a strike off company. Can you process to incorporate the same. I am from Punjab