What are the Top 10 legal formalities for starting a company in India???

The first step in getting your company registered is the approval of name for the Company. Generally, it takes about seven days to get the approval. The following steps are required for name approval.

You have to file an application in Form No. 1A with the Registrar of Companies (ROC) of the State in which the Registered Office of the Company is proposed to be situated. The application is to be signed by one of the promoters and must contain the following details:

Minimum 2 alternative names for the proposed Company. (The name can be coined names from the objects of the Company or the names of the directors, etc. but should definitely be indicative of the main object of the Company. Justification for the name needs to be specified along with the application).

Names and address of the members (minimum 7 for a public Company and 2 for a private Company).

Authorized Capital of the Company (Minimum Rs.5 Lac for a public Company and Rs. 1 lac for a private Company).

I would like to thank Veena for initiating this post, there would be many aspiring to start on their own..

The following documents are required to be submitted to the ROC (Registrar of companies):

Memorandum and Articles - These are required to be executed by the promoters in their own hand in the presence of a witness in quadruplicate stating their full name, father’s name, residential address, occupation, number of shares subscribed etc.

Form No. 1 - This is a declaration to be executed on a non-judicial Rs 20 stamp paper by one of the directors of the Company or other specified persons such as attorneys or advocates stating that all the requirements of the incorporation have been complied with.

Form No. 18 - This is to be filed by one of the directors of the Company informing the ROC of the registered office of the Company.

Form No. 29 - This is the consent obtained from all the proposed directors of the Company to act as directors of the Company. (Not required in case of private Company).

Form No. 32 - This states the appointment of the proposed directors on the board of directors from the date of incorporation of the Company and is signed by one of the proposed directors.

Name approval letter in original.

Power of Attorney signed by all the subscribers to Memorandum authorizing one of the subscribers or any other person to act on their behalf for the purpose of incorporation and accepting the certificate of incorporation.

Power of Attorney in case of a subscriber who has appointed another person to sign the Memorandum on his behalf.

Applicable filing fees.

These documents need to be filed online first and then a physical copy should be submitted to the ROC.

Directors for an Indian company, both Indian and foreigners, must register and get identification number under the new requirements. It is called Director Identification Number (DIN). The application needs to be filed online.

The form along with the supporting documents (PAN Card & Residence proof duly attested by CA, Notary or Gazette Officer) is to be sent to the offices designated by respective ROCs. The fee for obtaining DIN can be deposited online or deposited in banks authorized for this purpose.

EASIEST WAY TO COMPLETE ALL THESE FORMALITIES IS TO IDENTIFY A QUALIFIED,EXPERIENCED AUDITOR WHO WILL TAKE CARE OF ALL THESE TIME CONSUMING FORMALITIES AND WILL DO THINGS RIGHT AND WITH HIS CONTACTS DOES THINGS FASTER.ANYWAY ONE REQUIRES AN AUDITOR FOR EVER.

Starting a company need a great deal of knowledge and procedures.One of the key document is the constitution pf partnership duly probate.