Incorporation of a Private Company in India is the process of registering a company under the Indian Companies Act, 2013. The name ‘Private Limited’ that we often see in the names of companies indicates the registration had been done as a private company. In this article, we look at the process on how to incorporate a private company:
How to Incorporate a Private Company
Getting approval for the name of your company falls as the earliest step for company formation in India. The name shouldn’t be familiar or resembling an existing company. Additionally, it can’t violate the rules of emblems and names under the Prevention of Improper Use Act, 1950. The applicant must check the availability of the name by applying to the RoC with the eForm1 A, which they can access on the portal. If the chosen name is not approved/available or already taken, they are to apply for a new name under the same application. After the approval of the name, the applicant must apply for the company’s registration by filling up the following forms:
- Form-1 (Declaration of Compliance)
- Form-18 (Notice of the situation of the registered office of the company)
- Form-32 (Particulars of the Director’s, Manager or Secretary)
After filling up the forms, the applicant must arrange the drafting of a Memorandum of Association, which consists of the information about the company’s scopes and objectives. At least two people should sign the Memorandum (if it is a private limited company) and stamp it. Apart from the memorandum, a private limited company must prepare and provide Articles of Associations. The document consists of the rules and regulations of the internal management of the company.
Every applicant has to pay the registration fee and filing fee of each document at the time of registration. You should pay the fee at the registrar’s office. Furthermore, before paying the fee, the applicants must arrange the following documents:
- The consent of Directors is to be filed with the Registrar of Companies.
- Memorandum and Articles of Associations.
- The applicant must elect and execute the Power of Attorney for their company.
- The company should possess a registered office. They should file the office address with the Registrar before 30 days from registration.
- They are to submit a statutory declaration that states that all the requirements for legal registrations have been complied. An advocate of the Supreme Court should attest the decision. On the other hand, an advocate of the High Court or a Chartered Accountant that is still in practice can also do so.
Once you submit the required documents, the registrar conducts thorough scrutiny of the documents. And once all the documents are as per the order, they enter the company’s name into the Register of Companies. They issue the Certificate of Incorporation after the process is complete.
In India, registering a company is easy with a India business service provider like 3E Accounting India. It is a legal entity with perpetual succession which has helped over hundreds of companies on how to incorporate a private company.