Formation of a Company in India
Written by Utkarsh Anand Dt. August 30th, 2021
Company’s Formation means making Company a legal person in the eyes of Law or the process of making own identity of the Company. The procedure of registration has been clearly stated in Section 7 of the Companies Act, 2013.
Steps for forming a Company in India:
Formation of a Company in India is now easier by a new scheme name “Company with Zero fee”
Following are the procedures for Forming a Company in India:
Application for reservation of name: -Through SPICE+ PART A: SPICe+ Part A represents the section wherein all details with respect to name reservation for a new Company have to be entered. SPICe+ Part A can either be submitted individually for name reservation only or can be submitted together with SPICe+ Part B for both name reservation as well as formation and for availing other integrated services.
Application for Formation (Structure of the Company): – Through SPICE+ PART B: SPICe+ Part B represents the section wherein all remaining details required for formation of a Company has to be entered such as share capital, registered address, director details, and subscriber’s details.
Finalisation of Main Objects and Memorandum & Articles of Association of the Company: After filling SPICE+ PART B of the Company, next step is to finalise the eMoA and eAoA. Electronic Memorandum of Association (eMoA) which is a charter of the Company can be filed as a linked form to Spice+. Electronic Articles of Association (eAoA) which provide all the regulations related to internal affairs of the Company can be filed as a linked form to SPICe+. Both these forms must be digitally signed by subscribers to the Memorandum and Articles of Association.
SPICe+ eform for GSTIN / EPFO / ESIC / Profession Tax / Bank Account/Shop & Establishment Registration: – Through AGILE PRO S: Web form AGILE-PRO-S is required to be filed pursuant to Rule 38(A) of the Companies (Incorporation) Rules, 2014. The application for formation of a Company under rule 38 shall be accompanied by e-form AGILE–PRO-S containing an application for registration of the following numbers, namely
- Profession Tax Registration
- Opening of Bank Account
- Shop & Establishment Registration Number.
Registered Office: The Company is required to furnish to the Registrar verification of its registered office in eForm INC-22 within a period of thirty days from the date of its formation. The Company has also the option to specify the correspondence address of registered office at the time of filing SPICE+PART B eForm.
Director: For Forming a Private Limited Company, there should be at least two Directors and in case of Public Company at least three Director required to be appointed as director. In case of foreign Company, one director must be an Indian Resident.
Number of subscribers to form a Company: The law has provided minimum numbers of subscribers to a memorandum which must be there at the time of Company formation. For Private Limited Company minimum 2 subscribers is required, 7 in case of Public Limited Company and 1 subscriber is required for One Person Company.
Approval from ROC: Once the eForm is processed and found complete, Company would be registered and CIN would be allocated. Also DINs gets issued to the proposed Directors who do not have a valid DIN. Also PAN and TAN would get issued to the Company.
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