Steps for Company Formation in India

by Enterslice ITES Pvt. Ltd. Start and Manage Business

Company formation means a right given by the Authority to do lawful business. In India, company formation is also termed as company registration or company incorporation. A business organization that makes sales, purchase, manufacture and to all such activity in exchange for money is known as a company. Such company can engage in the product or in service. In short, we can say that company is a simple mode of doing business. Before doing any business the proposed members should decide the form of business operation or structure. Choice of business structure will help the entrepreneur to achieve the organizational goals. Facts such as expansion plans, manpower requirement, funds etc. should be considered before deciding the structure.

There are different types of the structure through which entrepreneur can enter the market and operate the business in India.

·    Private Limited Company – This is beneficial for Start-ups and Growth companies.
·  Public Limited Company – In such type of companies, the investment amount is huge and more compliance than private limited.
·     Limited Liability Partnership – This type of structure is suitable for Consulting companies and Professional Firms
·   One Person Company – Such entrepreneur wanting to run the corporate business solely.
·     Partnership Firm – This type of structure is good for traditional business for a limited period.
·       Sole Proprietorship – Small trader and shop owners normally opt this type of business structure.

The reason why an entrepreneur should register a company

·  Company protect you from personal liability for business risks and losses
·  Makes the brand of the company and increase credibility in the market
·     It helps to represent a person on behalf of the company
·     Easy availability of funds and investments
·      Creates reputation in market and faith in employees
·      It is easy to wind up or sell up the business

Documents required for Company Registration

·         Passport Size colored photograph of all directors for obtaining DSC
·         PAN Card copy
·         Proof of identity (Any one of below)
1.   Passport
2.   Aadhar Card
3.   Driving License
4.   Voter’s ID
·         Proof of identity (Any one of below)
1.   Bank Statement
2.   Electricity Bill
3.   Telephone Bill
4.   Mobile Bill
·         Registered Office Proof documents
1.   Electricity Bill
2.   Telephone Bill
3.   Any other Utility bill

Steps for Company Formation

·   Arrange for Documents of all proposed Directors and members.
· Name search on MCA database and Trademark search and then make application for name reservation on MCA Portal through the RUN system.
· Make an application for Digital Signature Certificate of all Directors and Members.
·  Preparation of necessary documents for incorporation (DIR 2, INC 9, Declaration and NOC).
· Preparation of Memorandum and Articles of Association of the company as per the business activity.
· File eForm SPICe with necessary attachments for company formation.
·  PAN or TAN application need not be made separately, as SPICe form include this too.
· Once approval is given by Ministry, Certificate of incorporation is received at the registered email address.

The time period for Company Formation takes 7-10 working days. The certificate of incorporation contains the Name of the company registered, Date of incorporation, the registered office of the company, PAN and TAN allotted to the company.

Source by: http://www.sooperarticles.com/business-articles/consulting-articles/steps-company-formation-india-1651934.html