Overview of Companies Act
Companies incorporated or registered in India are governed by the Companies Act 1956.
Shareholders and Directors
- There is no need to appoint local director to incorporate a company in India.
- Foreign nationals can incorporate company in India and hold foreign equity to the extent of 100%, which is dependent upon sector in which company will operate and is subject to approval from either Reserve Bank of India (RBI) or Foreign Investment Promotion Board (FIPB).
Company Registration
How to setup a company in India Steps to be taken to get incorporated a private limited company:-
- Ensure that the name does not resemble the name of any other company already registered.
- Apply to the concerned ROC to ascertain the availability of name in Form-1 A along with a fee of Rs.500/-. If proposed name is not available apply for a fresh name on the same application.
- Drafting of the Memorandum and Articles of Association, vetting of the same by ROC and printing of the same.
- Stamping of the Memorandum and Articles with the appropriate stamp duty.
- Get the Memorandum and Articles signed by atleast two subscribers in his own hand, his father's name, occupation, address and the number of shares subscribed for and witnessed by atleast one person.
- Get the following forms duly filled up and signed:-
- Declaration of compliance - Form-1
- Notice of situation of registered office of the company - Form-18.
- Particulars of Director, Manager or Secretary - Form-32.
- Present the following documents with ROC with filing fee and registration fee:-
- Declaration of compliance - Form-1
- Form-1, 18 & 32 in duplicate.
- Name availability letter issued by ROC.
- Power of Attorney from the subscribers in favour of any person for making corrections on their behalf in the documents and papers filed for registration.
- Obtain Certificate of Incorporation from ROC.
