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Incorporation of a Private Company
The Companies Act, 1956 has some procedures/
guidelines for incorporating a company. Every company in India
has to be registered under The Indian Companies Act, 1956. Ministry of
Corporate Affairs has made it easier to register a company. To avoid queues
and enquires, it has its own website that facilitates the registration
process.
Basically speaking there are two types of
companies
- Public
Company
- Private
Company
In this article we will be discussing about how
to incorporate a private company.
Following are few steps that will guide you
through the process of incorporating a Private Company.
I will broadly classify there are two stages of incorporation
- Before
incorporation
- At
the time of Incorporation and after it.
Before
incorporation:-
Assess your requirement: -
- First
of all you have to decide the structure of your company. Eg, Proposed
name, what will be the capital structure, who will be in charge of
management, who will be the first auditor of the company etc
- Once
you decide the above you have to apply for DIN of proposed directors.
- Simultaneously,
you will have to get Digital Signature Certificate for the proposed
directors.
- Once
you get the provisional DIN approved, you have to check the availability
of proposed name of your company. I.e you have to see if the name of the
company is available for incorporation or not. For this purpose you have
to make an application in form 1A. This form has to be electronically
filed over MCA portal. The fee for this purpose is Rs.500/-.For name
availability you can propose around four to six desirable names. In case
any name is getting rejected the other names can be helpful.If you want
some emblem or logo of your company, get it registered with copyright
authority. The same has to be scanned and attach with application.
- Soon
you get company name available, make arrangement for drafting and
printing of Memorandum and Articles of Association. Arrange for stamping
of the MOA and AOA with appropriate stamp duty.
- The
MOA and AOA has o be signed by subscribers in their own handwriting. In
case of private company there should be minimum two subscribers. The
date should be on or after the date of stamping.
At the time of
incorporation and after it:-
- Once
you get form 1A application approved and you get the name of the company
available, you have to apply for registration of the company. Within
seven days of application, the Registrar will inform you about the
status of application. The relevant form for applying registration of
company is form 1. This form also you have to apply online in MCA
portal.
- Next
to form 1, follow with filing form 18, and form 32. Form 18 is
intimation to Registrar of Companies about the situation of registered
office. Form 32, is intimation to Registrar about particulars of
directors.
- Now
you can obtain certificate of incorporation from Registrar of Companies
- All
the above forms have to be filed electronically except the documents
like, stamp papers, copy of MOA and AOA have to be filed physically in
addition to e-filing.
- Now
all you have to do finally is nothing except start your business under
the company name.
So to summarize above following are a
checklist for incorporation of a private company.
Checklist:
ü
Apply
for DIN for all proposed directors
ü
Get
Digital Signature Certificate for the persons who will be authorized to sign
the electronic forms or documents.
ü
Apply
for name approval in form 1A in MCA portal
ü
Get
stamped the printed MOA and AOA.
ü
Apply
for registration of the company in form 1 in MCA portal.
ü
Get
certificate of Incorporation for the company
ü
Fill
the forms 18 and 32 in MCA portal.
ü
Physically
submit the Memorandum of Association and Articles of Association with the
Registrar of Companies.
Hope got an idea how to incorporate a
Private company. Is not it very simple??
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