Incorporation Of A Company In India: A Snap Shot

A SNAP SHOT

KAVITA MALHOTRA BBPM LAW ASSOCIATES, A-13, FIRST FLOOR, NIZAMUDDIN EAST, NEW DELHI-13, TEL:011-41825911/22 www. bbpmlaw.com

COMPANIES

PRIVATE COMPANIES

PUBLIC COMPANIES

BBPM LAW ASSOCIATES

PRIVATE COMPANY

AUTHORISED CAPITAL: INR 1 LAKHS

SHARE-HOLDERS: 2 DIRECTORS: 2

BBPM LAW ASSOCIATES

PUBLIC COMPANY

AUTHORISED CAPITAL: INR 5 LAKHS

SHARE-HOLDERS: 7 DIRECTORS: 3

BBPM LAW ASSOCIATES

STEP 1: APPLY TO THE REGISTRAR OF COMPANIES (ROC) IN FORM-1A ALONGWITH THE FEES OF RS. 500 TO ASCERTAIN THE AVAILABILITY OF THE PRPOSED NAME OF A COMPANY;

STEP2: ON APPROVAL OF THE NAME THE ROC WILL ISSUE A NAME ALLOTMENT LETTER;

STEP 3: ON OBTAINING THE LETTER, DRAFT THE CONSTITUTIONAL DOCUMENTS OF THE PROPOSED COMPANY[i.e. MOA & AOA];

STEP 4: GET THE MOA & AOA VETTED BY THE ROC AND ON VETTING GET THEM PRINTED;

STEP 5: EXECUTE MOA & AOA BY STAMPING THEM WITH THE APPROPRIATE STAMP DUTY;

STEP

6:

PROVIDE

FOR

SIGNING

OF

MOA

&

AOA THE BBPM LAWBY ASSOCIATES

STEP 7: PERSON IN WHOSE PRESENCE THE MOA & AOA ARE SIGNED BY THE PROMOTERS MUST ALSO RECORD HIS SIGNATURE AND FURNISH DETAILS OF HIS OCCUPATION AND ADDRESS;

STEP 8: FILE WITH THE ROC THE DULY SIGNED, PRINTED AND EXECUTED MOA AND AOA ALONGWITH THE FOLLOWING FORMS: FORM 1 APPLICATION AND DECLARATION FOR INCORPORATION OF A COMPANY FORM 18 NOTICE OF SITUATION OR CHANGE OF SITUATION OF REGISTERED OFFICE FORM 32PARTICULARS FOR APPOINTMENT OF DIRECTORS AND MANAGERS ETC.;

STEP 9: PAY THE STATUTORY ABOVEMENTIONED DOCUMENTS;

FEES

ALONGSIDE

THE

FILING

OF

STEP 10: PROCURE CERTIFICATE OF INCORPORATION AND COMPANY SEAL BBPM LAW ASSOCIATES FROM ROC;

STEP 11: TAKE THE CONSENT OF THE PERSON WHO HAS BEEN PROPOSED AS A DIRECTOR OF THE COMPANY- FILL UP FORM 29.;

STEP 12: ARRANGE FOR PAYMENT OF APPLICATION AND ALLOTMENT MONEY BY DIRECTORS ON SHARES TAKEN AND AGREED TO BE TAKEN;

STEP 13: FILE THE STATEMENT IN LIEU OF PROSPECTUS WITH ROC IN SCHEDULE – III OF THE COMPANIES ACT [IF THE COMPANY DECIDES NOT TO ISSUE PROSPECTUS];

STEP 14: FILE A DECLARATION IN FORM 20 BY ONE OF THE DIRECTORS DECLARING THE COMPLIANCE OF SECTION 149(2)(b) OF THE COMPANIES ACT, 1956;

STEP 15: PROCURE THE CERTIFICATE OF COMMENCEMENT OF BUSINESS.

BBPM LAW ASSOCIATES



THE PROPOSED NAME OF A COMPANY TO BE INCORPORATED REQUIRES APPROVALFROM THE CONCERNED ROC.



THE APPLICATION FOR THE APPROVAL OF NAME GOES THROUGH A CLOSE SCRUTINY FOR THE FACT THAT NO TWO COMPANY SHALL HAVE IDENTICAL OR SIMILAR NAMES.



THE NAME OF A COMPANY MUST BE UNIQUE AND IN CONSONANCE WITH ITS OBJECTS.



FOLLOWING PROCEDURE IS TO BE FOLLOWED FOR GETTING THE NAME AVAILABILITY, PROMOTERS/SUBSCRIBERS TO FILE FORM-1A GIVING THE FOLLOWING RELEVANTPARTICULAR 1.

NAME OF PROMOTERS;

2.

REGISTERED PLACE OF A COMPANY;

3. COMPANY; 4.

STATE

WHETHER

THE

COMPANY

IS

A

PUBLIC/PRIVATE

PROPOSED NAME OF THE COMPANY; BBPM LAW ASSOCIATES

5. PREFERENCE;

ALTERNATIVES NAMES FOR THE PROPOSED COMPANY. IN TOTAL PROVIDE FOR SIX NAMES IN ORDER

6. STATE PROPOSED NAME;

THE

SIGNIFICANCE

OF

THE

KEY

WORD

7.

BRIEF OBJECTS OF COMPANY;

8.

PROPOSED DIRECTORS AND THEIR ADDRESSES;

9.

AUTHORISED SHARE CAPITAL

IN

OF

THE



FEES OF RS. 500 IS REQUIRED TO BE PAID ALONG WITH THE FORM;



THE PROCESS MIGHT TAKE 3-4 WORKING DAYS DEPENDING UPON THE EASY AVAILABILTY OF NAMES. IF THE PROPOSED AND THE ALTERNATIVE NAMES GET REJECTED THEN MORE ALTERNATIVE NAMES ARE TO BE PROVIDED FOR;



ONCE THE NAME IS APPROVED, THE ROC WILL INTIMATE THE SAME BY SENDING A LETTER AND WILL BLOCK THE NAME. BBPM LAW ASSOCIATES



THE MEMORANDUM OF ASSOCIATION & ARTICLES OF ASSOCIATION OF THE COMPANY;



DULY FILLED UP FOR FORM COMPANY;



DULY FILLED UP FORM 1 i.e. APPLICATION AND DECLARATION FOR INCORPORATION OF A COMPANY



DULY FILLED UP FORM 18 i.e. NOTICE OF SITUATION OR CHANGE OF SITUATION OF REGISTERED OFFICE



DULY FILLED UP FORM 32 i.e. PARTICULARS FOR APPOINTMENT OF DIRECTORS AND MANAGERS ETC.;

1A i.e. APPLICATION FOR NAME OF THE

BBPM LAW ASSOCIATES



OBTAIN DIN [DIRECTORS INDENTIFICATION NUMBER] FOR ALL THE PROPOSED DIRECTORS & ATLEAST ONE DIGITAL SIGNATURE CERTIFICATE FOR AT LEAST ONE DIRECTORS;



DULLY FILLED UP FORM NO. 29 i.e. CONSENT BY A PROPOSED DIRECTOR [ IN CASE OF A PUBLIC LIMITED COMPANY]



IN ADDITION TO THE DOCUMENTS MENTIONED HEREINABOVE THE FOLLOWING DOCUMENTS ARE REQUIRED WHILE INCORPORATION/REGISTRATION: A.

3 PHOTOGRAPHS OF EACH DIRECTOR;

B.

ONE IDENTIFICATION PROOF [DRIVING LICENCE/PASSPORT];

C.

ONE RESIDENTIAL PROOF [PASSPORT/BANK STATEMENT];

BBPM LAW ASSOCIATES

THE FEES REQUIRED TO BE PAID TO THE ROC FOR INCORPORATING A COMPANY IS HEREUNDER: AUTHORISED CAPITAL

INCREMENTAL CAPITAL

UPTO INR 1,00,000

FEE/INCREMENTAL FEE (INR) 4,000

FROM INR 1,00,000 TO INR 5,00,000

FOR EVERY INR 10,000

@300

FROM INR 5,00,000 TO INR 50,00,000

FOR EVERY INR 10,000

@200

FROM INR 50,00,000 TO INR 10, 000,000

FOR EVERY INR 10,000

@100

OVER INR 10,000,000

FOR EVERY INR 10,000

@50

BBPM LAW ASSOCIATES

BBPM LAW ASSOCIATES