Wondering how to start your own Private
Limited Company in India? Here are the 6 simple steps for you to understand the
basic procedure for incorporating a private Company in India:
Number of minimum Directors and
subscribers- 2 (Two)
Minimum capital investment-
INR 1 lakh
1. Digital
Signature Certificate (DSC) - As per the provisions of Companies Act, 2013,
any person being appointed as Director should have a Director Identification
Number (DIN). To apply for DIN you must have a digital signature to certify the
form DIN -3 (application for DIN). Documents required to procure DSC are-
a.
Application form duly signed by applicants
b.
Self-attested PAN card and address proof and
c.
One passport size photograph.
2. Director
Identification Number: In second step we will apply for the Director
Identification Number (DIN) by filing form DIN-3 with following attachment-
Identity proof, address proof and affidavit for verification of applicant with
photograph of applicant.
3. Application
for Company name: On receipt of approved DIN’s application to be made for reservation
of name proposed for the Company. Before making this application, it is
advisable to check the availability of proposed name including any trade marks
registrations similar to proposed name, if any. Three names can be given (to
avoid delay and repetitive filing) in their chronological order of preference,
upon which Registrar of Companies (ROC) will approve the available name.
4.
Filing of
Incorporation forms: In this step we will file 3 different forms which are
INC-7, INC-22 and DIR-12. INC-7 includes the charter documents of Company which
are Memorandum of Association (MOA) and Articles of Association (AOA). MOA
defines the business objects of the proposed Company and AOA defines the rules
and bye-laws under which the Company will operate. INC-22 is the form filed for
providing the office address of proposed company which shall be entered as the
Registered Office address in the records of (ROC), this form should be filed
with following documents-
a.
Proof of office address, which is
conveyance/Lease Deed/Rental Agreement along with rent receipts.
b.
Copies of utility bills (not older than two
months) i.e. either of Telephone Bill, Gas Bill, Electricity Bill or Mobile
Bill.
c.
NOC from Office premises owner.
d.
The khata certificate or tax paid certificate
issued by the respective municipal office depicting the office address.
And DIR-12, which is the form filed for giving
particulars of proposed directors of the Company along with declarations signed
by each directors.
5. Application
for commencement of business: On completion of step 4 ROC issues a Certificate
of Incorporation (CoI) of proposed Company but the Company is not supposed to
carry on any business activities until and unless the Certificate of Commence of
Business (CCB) is issues by ROC. In this step we shall apply for the same by
filing form INC-21 with Specimen signature in form INC-10 and copy of bank
account statement as proof of bringing in the initial share capital.
Points to be
noted before filing form INC-21: This is the form filed for declaring that
the first subscribers (shareholders) of the Company have bought in the initial
capital as agreed by them, which is INR 1 Lakh in case of private company
hence, it is advisable to open a bank account and bring in the initial capital.
6. Start your
business: On issue of CCB your private company is ready
to enter into business transactions and carry on the business as per the objects
stated in MOA.
Your views, comments and queries are
most welcome!
About author
Dhanaji Shinde is Practicing
Company Secretary at Bangalore who can be reached @ 98444 94678 / 96638 11124
or pcs.dhanaji.shinde@gmail.com
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