Company Registration in IndiaPosted on : Jun 2, 2014
A Company is:
- An invisible and artificial entity
- An association of persons who are associated voluntarily with an aim of doing business collectively but not affected by the illness or death of a single member
- Created under or by law, which means it is a discrete legal entity that is different from its constituting members
Important Measures for getting a Company registered in India:
Companies Act 1956 governs the registration of a Company in India and there are different types of companies registered under this Act, like Private Limited Company and Public Limited Company. To incorporate a company in India, there is no need of appointing a local director and foreign nationals can incorporate their company in India. Well! The extent of hold of equity share is a subject to the approval of Reserve Bank of India and Foreign Investment Promotion Board. It can be hundred percent or less, respective of the sector in which any company is going to operate.
- In this process of registering a company in India, first of all the Memorandum of Association and Article of Association are created which need to be stamped along with a stamp duty which depends on the authorized share capital.
- The main, supplementary or secondary and other objects are stated in the Memorandum of Association and the rules and procedures for the routine conduct, authorized share capital and the names of its first or permanent directors are stated in the Article of Association of the proposed company
- When it comes about the Shares- bearer shares are not allowed and these must be expressed in a fixed amount and in Indian currency.
- An appointment of auditor, who is qualified by the virtue of the Institute of Chartered Accountants of India Act 1949, is must every year at its annual general meetings.
- Its annual general meetings must be held once in a financial year and within the six months after its financial year is over.
- For public inspection, upon the incorporation of the company a company has to fill the personal details of the directors and secretary and registered office address etc.
Process of Registration
The Indian Companies Act, 1956, is the applicable law for the registration of a company in India. This act states that:
- Director Identification Number (DIN) must be generated
- Digital Signature certificate (DSC) must be acquired
- The name of the company must be approved by the Registrar of Companies (ROC)
Following Information is Required during the Process of Registration:
- Main objects, proposed names in order of preference and authorized share capital of the proposed company
- Along with personal details, three photographs, copy of passport and copy of proof of address of every proposed Directors and Shareholders of the proposed company
- Copy of Certificate of incorporation, Memorandum and Articles of Association and Board resolution of the existing company authorizing for shareholding in the proposed company