For the people who have a dream in their eyes, it is very tough for them to settle in a 9-5 job. Those people want to make their mark in this world and try to initiate their brand by establishing their ventures. For that, they have to go through the process of Company Formation in India.
Apart from the dream, the potentiality of the Indian market is another reason as this country has a diversified population with different tastes and socio-economic strata. For that, they are quite easily getting the reach of potential customers as the scope of success is quite high.
However, the first thing they have to do is form a company to run the business. To form a private limited company, it takes around 15 working days to execute all the required steps. According to the Companies Act 2013, all the steps will be taken to form a private limited company for financial planning.
What is the minimum requirement for Company Formation in India?
There are a few requirements that you have to meet to form a private limited company. These are:
- You need a minimum of 2 directors
- Up to 8 directors can create a company
- There should be at least 2 shareholders (they can be same as directors)
- The paid-up capital should be minimum Rs. 1,00,000
- Both the directors must have DIN
- You need a digital signature of both the directors
- You need consent from the director and subscriber
- Proof of the registered address
- The owner of the premise must provide NOC
- Name of the company
- You need to apply the company incorporation
- You must have the final certificate of the incorporation
Steps to form a company:
- Step 1: One of the directors must apply for the Digital Signature Certificate that is very important for the Company Formation in India. They may need scanned copies of a few documents along with other details.
- Step 2: All of the directors must apply for the Director Identification Number through DIR-3 form to the Central Government. They have to apply along with prescribed fees.
- Step 3: Another important part is the name of the company. For that, you have to select at least one name and a maximum of 6 names that will represent the objective of the company. You have to make sure that the name is not resemblance to any other registered company. You have to apply concerned ROC to find out the availability of the name in INC-1 of the General Rules and Forms along with fees.
There are certain rules regarding the availability of the name prescribed by MCA. The name will be valid for 60 days and the applicants have to register the name within the period.
- Step 4: In this step, you have to arrange and draft Memorandum and Article of Association by the solicitors and then do the stamping, signing by at least two subscribers and a few other things. Then you have to file documents with ROC (Registrar of Company).
- Step 5: You need to pay the prescribed fees after filing of the documents.
- Step 6: In this final step, ROC verifies all the documents and issues the Incorporation Certificate after satisfaction.