After Making your decision on the Right Legal Form for your Business, if you decide to float a Private or Public Limited Company, Find below the process involved.
Step – 1
- Select, in order of preference, at least one suitable name upto a maximum of six names, indicative of the main objects of the company.
- Ensure that the name does not resemble the name of any other already registered company and also does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950) by availing the services of checking name availability on the portal of the Ministry of Company Affairs
- Apply to the concerned RoC to ascertain the availability of name in eForm1 A by logging in to the portal. A fee of Rs. 500/- has to be paid alongside and the digital signature of the applicant proposing the company has to be attached in the form.
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If proposed name is not available, the user has apply for a fresh name on the same application.
Step – 2
- After the name approval the applicant can apply for registration of the new company by filing the required forms (that is Form 1, 18 and 32) within 60 days of name approval
- Arrange for the drafting of the memorandum and articles of association by the solicitors, vetting of the same by RoC and printing of the same.
- Arrange for stamping of the memorandum and aticles with the appropriate stamp duty.
- Get the Memorandum and the Articles signed by at least two subscribers in his/her own hand, his/her father’s name, occupation, address and the number of shares subscribed for and witnessed by at least one person.
- Ensure that the Memorandum and Article is dated on a date after the date of stamping.
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- Login to the portal and fill the following forms and attach the mandatory documents listed in the eFormDeclaration of compliance – Form-1
Notice of situation of registered office of the company – Form-18.
Particulars of the Director’s, Manager or Secretary – Form-32.
Step – 3
- Submit the following eForms after attaching the digital signature (You can get a digital signature from any of the issuing authorities like TCS, Sify etc. It would cost between Rs. 500/- to Rs. 1000/-), pay the requisite filing and registration fees and send the physical copy of Memorandum and Article of Association to the RoC
- After processing of the Form is complete and Corporate Identity is generated obtain Certificate of Incorporation from RoC.
Additional steps to be taken for formation of a Public Limited Company:
To obtain Commencement of Business Certificate after incorporation of the company the public company has to make following compliance
- File a declaration in eForm 20 and attach the statement in lieu of the prospectus(schedule III) OR
- File a declaration in eForm 19 and attach the prospectus (Schedule II) to it.
- Obtain the Certificate of Commencement of Business.
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Dear Mr. Robin,
I shall be thankful if I get clarification on the following points.
1. Can a private limited company be formed for any income-earning activity?
2. Is there any business activity prohibited for companies in India?
3. More specifically, can a company be formed for speculation activity in the markets?
Regards,
Devas.
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