Company Formation in India
To form a company in India, you need to follow certain procedures and fulfill specific requirements. Here is a general overview of the process:
Decide on the type of company: The most common types of companies in India are private limited companies, public limited companies, and limited liability partnerships (LLPs). Choose the one that suits your business needs.
Obtain Director Identification Number (DIN): The proposed directors of the company must obtain a DIN from the Ministry of Corporate Affairs (MCA). This can be done by submitting an online application with the necessary documents.
Obtain Digital Signature Certificate (DSC): The directors also need to obtain a digital signature certificate, as various documents filed with the MCA need to be digitally signed.
Choose a unique name for the company: Select a unique name for your company, keeping in mind the guidelines and restrictions set by the MCA. You can check the availability of the name on the MCA website.
Prepare the Memorandum of Association (MOA) and Articles of Association (AOA): These documents outline the company’s objectives, rules, and regulations. They need to be prepared and signed by the directors and shareholders.
File incorporation documents: Submit the required incorporation documents to the Registrar of Companies (ROC) along with the prescribed fees. The documents include the MOA, AOA, Form INC-32 (SPICe) for company incorporation, and other necessary forms and declarations.
Obtain the Certificate of Incorporation: If all the documents are in order, the ROC will issue the Certificate of Incorporation, which confirms the formation of your company. This certificate contains the Corporate Identification Number (CIN) of your company.
Obtain Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN): Apply for PAN and TAN with the Income Tax Department, as these are required for tax purposes.
Register for Goods and Services Tax (GST): If your company’s turnover exceeds the prescribed threshold, you need to register for GST, which is a value-added tax system in India. This can be done through the GST portal.
Open a bank account: Once you have the Certificate of Incorporation and PAN, you can open a bank account in the name of your company.
Comply with ongoing requirements: After company formation, you need to comply with various ongoing compliance requirements, such as maintaining books of accounts, conducting annual general meetings, filing annual returns, etc.
Please note that this is a general overview of the company formation process in India, and the actual steps and requirements may vary based on the type of company and specific circumstances. It’s advisable to consult with a qualified professional, such as a Auditor or a lawyer, to ensure compliance with all applicable laws and regulations.