how to form a company

HOW TO FORM A COMPANYDOCUMENTS REQUIRED TO FORM A COMPANY

Forms of business

Sole Proprietorship A business run only by you, which mostly do not require registrations

Partnership A business run by more than one person, with responsibilities and revenues shared between them

Limited Liability Partnership A partnership business run by multiple people, with individual and limited responsibilities but not liable for others’ decisions

Private Limited CompanyA business held privately by you and/or your partners and cannot have:

More than 50 shareholders Public trading of shares.

Public Limited Company A business registered under the Companies Act (1980) having:

Necessary capital requirements Public trading of shares

Forms of business

How to go about starting a small business

1. Digital Signature CertificateDSC can be obtain from any of the MCA-authorized agencies, which will take 2-5 days.The Information Technology Act, 2000 has provisions for use of Digital Signatures on the documents submitted in electronic form in order to ensure the security and authenticity of the documents filed electronically. This is secure and authentic way to submit a document electronically.

2. Company IncorporationOnce you have received the DSC, it is time to prepare the

incorporation of the small business.Steps to be taken to obtain Certificate of

Incorporation1. Obtain Director Identification Number (DIN).2. File the desired company name with the Registrar of Companies.3. Submit the main objective of company to the ROC.4. Finalize the following documents:

1. Memorandum of Association2. Article of Association3. Register your office address, submit letters of declaration and

appointments of Board OF Directors.

3. Payment of FeesAfter preparation of your business incorporation, you will

have to pay necessary fees and stamp duties before filing for the Certificate of Incorporation. The fee structure on the basis of the capital

Capital Fees

1,00,000 5 % of 1 Lac

1,00,000 - 5,00,000 4 % of 1 Lac

1,00,000 - 50,00,000 3 % of 1 Lac1,00,000 -

1,00,00,000 1% of 1 Lac

1,00,000 – 10,00,00,000 0.75 % of 1 Lac

4. Certificate of Incorporation You have to submit digital and physical copies of the following documents to the ROC to get your Certificate of Incorporation: 1. Form INC-72. Form INC-223. Form DIR-124. Signed and stamped forms of Memorandum and Article of

Association5. Initial consent of directors6. Original approval of name letter7. Stamped power of attorney documents.

5. Income Tax RegistrationOnce you have incorporated your small business, you will

need to register with the relevant tax authorities that would help you with starting a small business.For that you have to fill application with the Income Tax Department1. Obtain the Permanent Account Number (PAN).2. Obtain the Tax Account Number (TAN).3. Register for Value-Added Tax (VAT), Professional Tax and Service

Tax

6. Labor Law proceduresThese rules define the basic employee policies which

need to be in place at any business.

Registration with the Office of Inspector, Shops and Establishment Act.

Registration with the Employees’ Provident Fund Organization if you have more than 20 employees.

Registration with the Employees’ State Insurance Corporation, a social scheme to provide protection to workers.

Requirements needed to start a company

1st Step:-Apply for DIN of each director. DIN means Director Identification

Number. Documents required from each director:- (a) Digital Signature (Each Director)(b) PAN (Each Director) (c) 1 Photograph(d) Address Proof (Each Director)(e) Affidavit as per DIR 4

Affidavit as per DIR-4

After arranging all these documents Fill in Form DIR-3 and make all attachments. Valid documents for address proof:-

(a) Passport (b) Election (Voter Identity) Card (c) Ration Card (d) Driving License (e) Electricity Bill (f) Telephone Bill (g) Aadhar Card Documents should not be older than 2 months.

Apply for DIN in form DIR-3 and DIN will be allotted at the same time.

Form DIR - 3

2nd Step:- Apply for reservation of name in the form INC-1:- No Attachment is required in this form except in some cases.

Form INC - 1

3rd Step:- After getting name approval from MCA you need to apply for

certificate of incorporation. There are 3 forms which are required to be uploaded:- (a) INC-7 (b) INC-22 (c) DIR-12

These Forms will require a lot of attachments which are listed below(a) INC-8, INC-9, INC-10 and DIR-2 (b) Memorandum of Association and Article of Association as per

new Companies Act, 2013

(c) SEBI clause acceptance of deposit (d) Electricity bill of Registered Address of the company (e) Rent Agreement/NOC along with rent receipts(f) Please be noted that we need to attach photographs in MOA and AOA as well as per the requirements of the companies act 2013 and changes made by MCA till now (g) Valid documents for address proof.

- Voter ID- Passport- Bank Statement- Telephone Bill etc.

Form INC - 7

Form INC - 22

Form DIR-12

Memorandum of Association

Article ofAssociation

Certificate of Incorporation

4th Step :-

Apply for Certificate to Commence business.

It will be required for both Public Limited Company as well as Private Limited Companies as per section 11 of Companies Act 2013.

INC-21 will be required to be filed within 180 days of receiving Certificate of Incorporation.

Certificate of Commencement

Priyank Srivastava

how to form a company

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