Everything You Need to Know About Company Incorporation in India

Company incorporation in India refers to the legal process of forming a corporation, giving it recognition under the Companies Act, 2013, and allows it to operate as a distinct legal entity with its rights and obligations.

Key Stages of Company Incorporation

Company formation includes four main stages:

• Promotion
• Incorporation
• Capital Subscription
• Commencement of Business.

The process typically starts with determining the kind of company registration in Delhi (private, public, or One Person Company) and its objectives.

Promotion 

• Initiated by promoters who conceptualize the business and define its purpose.
• Primary documents prepared here are the Memorandum of Association (MOA) and Articles of Association (AOA), followed by written consent from directors and any agreements regarding their appointments.

Incorporation Procedure

• Apply for Director Identification Number (DIN) for proposed directors.
• Name approval: Check and reserve a unique company name with the Ministry of Corporate Affairs.
• Document drafting: Prepare MOA, AOA, and other required documents stating the constitution, objectives, and rules of the company.
• Submission to Registrar of Companies (ROC): File e-forms (such as INC-7, INC-22, DIR-12) and pay necessary fees and stamp duty.
• The ROC will verify documents and, upon satisfaction, issue a Certificate of Incorporation. This certificate legally establishes the existence of the company. 

Type of Companies

• Private Company: Requires a minimum of two members, restricts transfer of shares, and prohibits public share offerings.
• Public Company: Needs at least seven members and can invite funds from the public by issuing shares and debentures.
• One Person Company: Permits a solo entrepreneur to register a company, a simplified option introduced under the Companies Act, 2013.

Post-Incorporation Formalities

• Private companies may commence business as soon as the Certificate of Incorporation is received.
• Public companies need an additional Certificate of Commencement of Business after raising minimum capital via share subscription.
• All companies must comply with FDI rules, licensure, intellectual property audits, tax compliance, and appointment of statutory auditors as applicable.

Importance of Certificate of Incorporation

• It is definitive proof of the company’s legal existence.
• The company gains the right to conduct business, enter into contracts, and is subject to compliance requirements as stipulated by law.

Summary Table: Incorporation Steps

Company incorporation in India is a structured and legally significant process by CA Services in Delhi, providing entrepreneurs and investors with defined steps and safeguards for establishing a robust business entity.

Taxcellent helps you in incorporating companies within 15 Days subject to complete documentation at very reasonable prices.