Tag: company registration in india

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Documents Required for Private Limited Company Registration: A Detailed Guide

Documents Required for Private Limited Company Registration: A Detailed Guide

Starting a business is an exciting and crucial step toward your entrepreneurial journey. If you’re considering registering a Private Limited Company in India, it’s essential to understand the documentation required to complete the process smoothly. A Private Limited Company registration in India provides various advantages, such as limited liability, business credibility, and the potential to raise funds. However, before you can enjoy these benefits, you need to gather the necessary documents and complete the registration process.

In this blog, we’ll guide you through the documents required for Pvt Ltd Company Registration in India and help you understand what is needed to successfully register a company in India.

Why is Document Preparation Essential for Company Registration in India?

Proper document preparation is a crucial step in the Company Registration in India process. Accurate and valid documents ensure that your company is legally compliant, protects you from future legal issues, and establishes credibility with investors, clients, and financial institutions. With the increasing availability of company registration online in India, it is easier than ever to complete the process, but having the right documents ready is key.

Key Documents Required for Pvt Ltd Company Registration in India

Here’s a detailed list of the documents required for Private Limited Company Registration:

1. Identity Proof of Directors

Every director of the proposed Private Limited Company must submit a valid identity proof. This is a mandatory requirement to ensure the authenticity of the individuals involved. Acceptable documents include:

  • Aadhaar Card (for Indian directors)
  • Passport (for foreign nationals)
  • Voter ID
  • Driver’s License
  • PAN Card (if available)

The document should clearly show the full name, photograph, and signature of the director.

2. Address Proof of Directors

Along with the identity proof, you need to submit the address proof of all the directors. This helps to verify the residential address of the directors. The following documents are generally accepted:

  • Utility Bill (electricity, water, or gas bill)
  • Bank Statement or Credit Card Statement
  • Rental Agreement (if the director is renting the property)
  • Passport (if not already submitted for identity verification)

Make sure the address proof is not older than two months from the date of submission.

3. Proof of Registered Office Address

Your Private Limited Company needs a registered office within India. Whether it’s a commercial space or a home address, you need to provide the following documents to verify the office address:

  • Utility Bill (electricity, water, or gas bill)
  • No Objection Certificate (NOC) from the property owner (if the property is rented)
  • Rental/Lease Agreement (if you’re renting the space)
  • Property papers (if the office is owned by the company)

These documents confirm the physical location of your company’s registered office and must be submitted as part of the registration process.

4. Memorandum of Association (MOA)

The Memorandum of Association (MOA) is a critical document that outlines the company’s objectives, powers, and the scope of its operations. It serves as the foundation for your Pvt Ltd Company Registration in India. The MOA should include:

  • The company name
  • Registered office address
  • Objectives and business activities of the company
  • Subscriber details (name, address, number of shares held, etc.)

The MOA must be signed by all directors and shareholders of the company before submission.

5. Articles of Association (AOA)

The Articles of Association (AOA) defines the internal rules and regulations governing the company. It outlines how the company will be run, the powers of directors, and the rights of shareholders. Along with the MOA, the AOA should be signed by the company’s directors and subscribers.

6. Director Identification Number (DIN)

Each director of the company is required to have a Director Identification Number (DIN), which is issued by the Ministry of Corporate Affairs (MCA). To obtain a DIN, directors need to submit:

  • A recent passport-sized photograph
  • Identity proof (Aadhaar, Passport, Voter ID, etc.)
  • Address proof (Utility bill, Bank statement, etc.)

The DIN application can be completed online through the MCA portal.

7. Digital Signature Certificate (DSC)

The Digital Signature Certificate (DSC) is essential for filing electronic documents with the Ministry of Corporate Affairs (MCA). All directors and subscribers must have a DSC to sign the application forms online during the company registration online in India process. The DSC can be obtained from government-approved agencies.

8. Consent to Act as Director

A No Objection Certificate (NOC) from each director and their Consent to Act as Director must be submitted. This document confirms that the individual agrees to become a director and that they meet the necessary legal requirements to hold the position.

9. Shareholders’ Agreement (Optional)

While not mandatory, it’s a good practice to draft a shareholders’ agreement if there are multiple shareholders. This agreement outlines the rights and duties of shareholders and covers aspects like:

  • The number of shares held by each shareholder
  • Dividend distribution policies
  • Decision-making powers
  • Share transfer procedures

This agreement helps avoid disputes among shareholders in the future and ensures smooth business operations.

10. PAN and TAN Application

Once your Private Limited Company is registered, you must apply for the company’s Permanent Account Number (PAN) and Tax Deduction Account Number (TAN). PAN is essential for tax filings, while TAN is required if your company plans to deduct taxes at source.

You can apply for PAN and TAN online through the Income Tax Department’s website.

Conclusion

The documents required for Private Limited Company registration in India are essential for completing the process smoothly and ensuring that your company is legally compliant. Having the right documents in place not only helps you register a company in India but also protects your business from legal issues down the road.

Whether you’re wondering how to register a company in India or seeking advice on how to register a startup company in India, this list will guide you step-by-step. You can also register a company online in India through the Ministry of Corporate Affairs (MCA) portal, making the process more efficient and hassle-free.

Start your business journey today by ensuring that you have all the necessary documents for Private Limited Company registration in India. If you’re unsure or need assistance, consulting with a professional or Company Registration Consultant can help you navigate the process effortlessly.

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How to Register a Startup in India: A Complete Guide

India, with its burgeoning entrepreneurial ecosystem, has become one of the most attractive destinations for startups. The government’s push for a Startup India initiative, along with the rise of tech hubs like Bengaluru, Hyderabad, and Gurugram, has led to a significant increase in the number of startups across various sectors. If you are looking to launch your own startup, understanding the company registration process is essential to ensure your business operates legally and thrives in the long run.

In this blog, we will provide a complete guide on how to register a startup in India, focusing on the registration of a Private Limited Company, which is the most preferred business structure for startups due to its credibility, limited liability, and growth potential.

Understanding Startup Registration in India

Before diving into the specifics of how to register a startup company in India, it’s crucial to understand what constitutes a startup. According to the Indian government, a startup is a company that is:

  • Less than 10 years old from the date of its incorporation.
  • With an annual turnover not exceeding ₹100 crore.
  • Working towards innovation, development, or improvement of products or services that are scalable and have the potential to create jobs.

While the Private Limited Company registration in India is the most popular form of registration for startups, you can also choose other legal structures such as a Limited Liability Partnership (LLP) or a One Person Company (OPC). However, a Pvt Ltd Company Registration in India is usually the preferred choice for most entrepreneurs due to its advantages in terms of liability protection, funding options, and scalability.

Key Benefits of Registering a Private Limited Company

  1. Limited Liability Protection: As a shareholder of a private limited company, your personal assets are protected from any business liabilities.
  2. Access to Funding: Investors, including venture capitalists and angel investors, are more likely to invest in a registered private limited company due to its legal structure.
  3. Separate Legal Entity: The company is treated as a separate legal entity, distinct from its shareholders and directors, which adds credibility and helps in smoother business operations.
  4. Tax Benefits: Private limited companies benefit from various tax exemptions and incentives provided by the government, especially for startups under the Startup India scheme.

Steps to Register a Startup in India

Step 1: Choose the Type of Business Entity

The first step in the company registration in India process is to decide on the type of legal entity. As mentioned earlier, for most startups, a Private Limited Company is the best option due to its many benefits, including limited liability protection and easier access to funding.

Other options include:

  • Limited Liability Partnership (LLP): Ideal for small businesses with fewer partners.
  • One Person Company (OPC): Best suited for solo entrepreneurs.
  • Partnership Firms: Suitable for a group of people running a business together with shared profits and liabilities.

For this guide, we will focus on the Private Limited Company registration in India.

Step 2: Choose a Unique Company Name

The next step in how to register a startup company in India is to choose a unique name for your business. The name of your company should reflect your business activities, be catchy, and should not infringe on existing trademarks. The name must adhere to the guidelines set by the Ministry of Corporate Affairs (MCA).

To check the availability of your preferred name, you can use the MCA’s online portal to search for existing companies or trademarks with similar names. Once you finalize the name, you can move forward with the registration process.

Step 3: Obtain Director Identification Number (DIN) and Digital Signature Certificate (DSC)

Before you proceed with the company registration online in India, it’s necessary to obtain two key documents for the directors of your proposed company:

  1. Director Identification Number (DIN): This is a unique identification number assigned to individuals who wish to become directors of a company. The DIN is mandatory for all directors in India.
  2. Digital Signature Certificate (DSC): This is an electronic signature that is required to sign the company registration documents digitally. It ensures the authenticity of documents filed with the government.

Both the DIN and DSC can be obtained by filing an application on the Ministry of Corporate Affairs (MCA) website.

Step 4: Draft the Memorandum of Association (MOA) and Articles of Association (AOA)

The Memorandum of Association (MOA) and Articles of Association (AOA) are two essential documents for registering your company. These documents define the company’s objectives, rules, and regulations. They lay the foundation for how the company will operate, its powers, and the roles of its shareholders and directors.

  • MOA: The MOA outlines the company’s objectives and scope of activities. It is a fundamental document that governs the company’s operations.
  • AOA: The AOA defines the internal management rules, such as the rights and duties of members, the powers of directors, and how decisions will be made within the company.

Both of these documents are required for company registration in India.

Step 5: Register Your Company with the Ministry of Corporate Affairs (MCA)

Once you have all the required documents, you can proceed to the Company Registration Online in India. The Ministry of Corporate Affairs (MCA) provides an online platform called the MCA21 Portal for business registration. Here’s how the process works:

  1. Create an account on the MCA21 Portal.
  2. Fill out the forms: You will need to fill out forms such as SPICe+ (Simplified Proforma for Incorporating a Company Electronically Plus), which combines multiple procedures like obtaining DIN, PAN, and TAN into one form.
  3. Upload documents: Submit all the required documents, including the MOA, AOA, proof of office address, and identity/address proof of directors.
  4. Payment of Fees: Pay the registration fee online through the portal. The fees vary depending on the type of company and the authorized capital.
  5. Certificate of Incorporation: After successful submission and approval of your application, the MCA will issue the Certificate of Incorporation, which marks the official registration of your company.

Step 6: Apply for PAN and TAN

After completing the Pvt Ltd Company Registration in India, you must apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN). These are necessary for the company’s tax-related activities, including opening a bank account and deducting tax at source.

You can apply for PAN and TAN online through the MCA portal or the Income Tax Department website.

Step 7: Open a Corporate Bank Account

Once you receive the Certificate of Incorporation, PAN, and TAN, the next step is to open a corporate bank account in your company’s name. This account will be used for all business transactions and must be in the name of the company, not the individual directors.

Most banks in India provide dedicated services for startup companies, and they usually require documents like the Certificate of Incorporation, PAN, and proof of address to open the account.

Step 8: Register for GST (if applicable)

If your company’s turnover exceeds the GST threshold limit or if you are dealing in inter-state sales, you will need to register for Goods and Services Tax (GST). GST registration can be done online through the GST Portal.

Step 9: Comply with Other Legal Requirements

Depending on the nature of your business, you may need to comply with other regulatory requirements such as:

  • Employees’ Provident Fund (EPF) Registration
  • Employees’ State Insurance (ESI) Registration
  • Import Export Code (IEC) for international trade

Conclusion

Starting a business in India has become a lot easier with the advent of online platforms for company registration online in India. The Private Limited Company registration in India is the most preferred structure for startups, offering advantages like limited liability protection, ease of raising funds, and more credibility in the market.

By following the steps outlined in this guide and ensuring compliance with legal and regulatory requirements, you can successfully register your startup in India and begin your entrepreneurial journey. If you find the registration process daunting, you can always consult a professional Company Registration Consultant to help you with paperwork, filings, and legal formalities.

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Company Registration Online – How to Register a Private Limited Company in India

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In today’s fast-paced business world, registering a company is the first step toward establishing a legitimate business entity. With the rise of online services, the process of company registration has become more accessible and streamlined. This blog will take you through the essential steps involved in registering a Private Limited Company in India, covering everything from the required documentation to the benefits of company registration online in India.

What is a Private Limited Company?

A Private Limited Company (Pvt Ltd) is a business structure that is privately owned and offers limited liability to its shareholders. The main advantages of forming a Private Limited Company include limited liability, easy transfer of shares, and the ability to raise capital. This business model is particularly attractive to small and medium-sized businesses and startups, providing them with an ideal legal structure to scale up.

Why Should You Register a Private Limited Company in India?

Before diving into the steps, let’s explore why you should consider Pvt Ltd company registration in India:

  1. Limited Liability: Shareholders are only liable for the company’s debts up to the value of their shares. This means personal assets are protected from business liabilities.
  2. Separate Legal Entity: A Pvt Ltd company is considered a separate legal entity, meaning it can own property, sue, and be sued in its own name.
  3. Better Access to Funding: Registering a company can enhance credibility with investors and banks, making it easier to raise capital through equity or loans.
  4. Tax Benefits: Private Limited Companies enjoy various tax exemptions and benefits, including lower tax rates on corporate income.
  5. Continuity: A Pvt Ltd company continues to exist even if the owner or shareholder dies or leaves the business. This makes it an ideal choice for long-term business planning.

How to Register a Company in India – Step-by-Step Process

Now that we understand the advantages, let’s explore the steps involved in how to register a company in India. Registering a company can be done online through the Ministry of Corporate Affairs (MCA) portal, making it a straightforward process.

Step 1: Obtain Digital Signature Certificate (DSC)

The first step in the company registration online in India process is to obtain a Digital Signature Certificate (DSC). The DSC is required for signing documents online during the registration process. It is a crucial part of the process and ensures that the documents are legally valid.

You can apply for a DSC through government-approved certifying agencies. The DSC is typically required for all directors and shareholders of the company.

Step 2: Obtain Director Identification Number (DIN)

The next step is to obtain a Director Identification Number (DIN) for the directors of the company. The DIN is a unique identification number assigned to individuals intending to become directors of companies. It is necessary for both the company’s directors and shareholders.

You can apply for the DIN through the MCA portal. This is done by filling out the SPICe+ form (Simplified Proforma for Incorporating Company Electronically), which includes the details of the company’s directors and other mandatory information.

Step 3: Choose a Company Name

One of the most crucial steps in Private Limited Company Registration in India is selecting an appropriate name for the company. The name must adhere to the guidelines set by the MCA, ensuring that it is not identical or similar to an existing company name or trademark.

The name should reflect the nature of your business, be unique, and easy to remember. You can also check the availability of the name through the MCA portal by conducting a name search.

Once you’ve selected a name, you must file an application with the MCA to reserve it. The name approval process can take around 1-3 days, depending on the availability and compliance of the chosen name.

Step 4: Drafting the Memorandum and Articles of Association (MOA and AOA)

The next step in the company registration in India process is drafting the Memorandum of Association (MOA) and Articles of Association (AOA).

  1. Memorandum of Association (MOA): The MOA defines the scope of the company’s activities, its objectives, and the powers of its directors and shareholders.
  2. Articles of Association (AOA): The AOA lays down the rules and regulations for the internal management of the company. It includes procedures for meetings, the powers of directors, and other essential operational details.

Both documents must be signed by the company’s directors and shareholders.

Step 5: Filing the Incorporation Application

Once you have the necessary documents, you can now proceed with filing the incorporation application. The MCA has made the process easier by introducing the SPICe+ (Simplified Proforma for Incorporating Company Electronically) form, which combines multiple procedures into a single form. The SPICe+ form is a one-stop solution for Pvt Ltd Company registration in India.

This form includes:

  • Details of directors and shareholders
  • The company’s registered office address
  • The company’s capital structure

Once the form is filed, the registrar of companies (RoC) will review the application. If everything is in order, the company will be registered, and you will receive the Certificate of Incorporation (COI).

Step 6: Certificate of Incorporation (COI)

After the approval of your application, you will receive the Certificate of Incorporation (COI). This certificate is a legal document that confirms the formation of your company. It contains your company’s name, registration number, and the date of incorporation.

Once you have the COI, your company is officially registered, and you can begin operations.

Documents Required for Private Limited Company Registration in India

The following documents are required for Pvt Ltd Company registration in India:

  • Identity Proof: Aadhar card, passport, voter ID, or driving license of all directors and shareholders.
  • Address Proof: Utility bills or bank statements that confirm the residential address of directors and shareholders.
  • PAN Card: The Permanent Account Number (PAN) of the directors and shareholders.
  • Photographs: Recent passport-size photographs of the directors.
  • Registered Office Address Proof: A rent agreement (if rented) or ownership documents (if owned) along with a NOC from the landlord.

Benefits of Registering a Private Limited Company Online in India

The process of company registration online in India offers numerous benefits, making it a popular choice for entrepreneurs. Some of the key advantages include:

  1. Convenience: You can complete the entire registration process from the comfort of your home or office, saving time and effort.
  2. Time-Saving: Online registration is faster than traditional methods. Once you submit the documents and forms, the approval process is quicker, reducing delays.
  3. Cost-Effective: By registering your company online, you can avoid physical visits to government offices and save on travel costs.
  4. Transparency: The online system is transparent and provides updates on the status of your application, making it easy to track the progress.
  5. Expert Guidance: Many platforms offer expert assistance and support during the company registration process online in India, ensuring that everything is done correctly and in compliance with legal requirements.

How to Register a Startup Company in India

India has a growing startup ecosystem, and many entrepreneurs are keen to explore new business opportunities. The process to register a startup company in India is similar to registering a Private Limited Company. However, there are additional benefits and incentives for startups.

The government of India offers various schemes for startups, including tax exemptions and funding opportunities. To register a startup, you need to:

  • Ensure that your business is an innovative and scalable model.
  • Register your startup on the Startup India portal.
  • Apply for recognition from the Department for Promotion of Industry and Internal Trade (DPIIT).

Once your startup is registered, you can avail of government benefits and funding options.

Conclusion

Registering a Private Limited Company in India is a crucial step for anyone looking to start a business in the country. The process of company registration online in India has made it easier than ever to incorporate a company, whether you’re a startup or an established business.

By following the steps outlined in this blog, you can ensure a smooth and successful registration process. Additionally, with the assistance of professionals and online services, the entire process becomes more efficient, transparent, and hassle-free.

If you’re still unsure about how to proceed with Pvt Ltd company registration in India, it’s a good idea to consult with legal or financial experts to guide you through the process. With the right steps in place, your business can grow and thrive in the dynamic Indian market.

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Decoding the benefits of registering a Business

Decoding the benefits of registering a Business

There are lots of benefits which are there of registering a business in India and they are as follows-

  1. It gives you a structure- By forming a new company, it gives you a better structure of business, like suppose if you want to open a one man company then you can go for One person company formation, or if there are Partners in your company then you must opt for a Partnership Firm and by forming a company, it helps in smoothly running of a firm.
  2. Without structure there is no order in the company and therefore it affects the profit margin of the company. Therefore when we talk about business then we must focus on how must give a properly organized structure to your business idea.
  3. By opting for a registration of company, it gives a separate entity to your business, as you get certificate of incorporation which can be called as a Birth Certificate of your newly formed company.
  4. There is perpetual existence of a company, like when we open a startup , then everyone one only wants to make money but also they want to establish a legacy. When a business is registered it gives a separate entity. If and when the owner of the business dies the business can continue to exist. Its ownership can be transferred to another Director, or it can lie dormant.
  5. Registered business are more trustworthy, basically unregistered business is worthless as before doing any business, anyone wants to have safe business and they do not want to lose in their services, therefore registered business are termed as more understandable as compared to the unregistered one.
  6. Limited liability partnership is probably the most overused terms when it comes to “ benefits of Business Registration”, however people are still fuzzy about its meaning. So Limited Liability means that a company is a separate legal entity and it has to bear its own losses.

Conclusion

When it comes to business registration, there are many but when we talk about its benefits, there we lack, I hope that through this blog we have enlightened you with the understanding of what the benefit actually means.

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Decoding the benefits of registering a business

Decoding the benefits of registering a business

Incorporating or Registering your business idea is not a bad idea in India as it gives a strong foundation to your business aspirations so that you don’t come crashing down.

Benefits of Business Registration in India

Registering a business has importance everywhere in the world, but it is India where it is more significant. The major benefits of registering a Business in India are as Follows-

  1. It Gives you Structure- when you register a business in India then you give a proper structure to your business. As without proper structure there is no order in Business and therefore, there is hardly any profit. Without a proper business criteria there is no business conducted properly. Therefore, it is always advisable to register a business for the proper and smooth brunning of your business.
  2. Separate Entity- It forms a separate entity once you form a separate business.  Once you get the certificate of incorporation, you apply for PAN card in the name of the company which is considered as a Valid ID of the company. 
  3. Perpetual Existence- we live in an era of startups, everyone not only wants to make money, they want to establish a legacy. When an entity is registered then it becomes a separate entity. Therefore, if and when the owner of the business dies , the business can continue to exist.
  4. Registered Business are more trusted- generally a business which is a registered one is trusted more are compared to the unregistered one. We are not saying that unregistered business are worthless, but they are hidden more,less advertised, less marketed and therefore, less trusted. However once you have registered your business 

, you are free to reveal yourself and market yourself.

      5.  Trust then leads to more funds- If you have trust of the people then you would have more trust of the investors and Financial institutions as well. A business cant survivev on the personal assets of its owner, it needs outside funding for expansion, diversification. Being a registered business attracts more investors towards you, who see your business a legitimate one. 

       6. Limited Liability-  Limited liability is probably the most used terms when “Benefits of Business Registration” is the topic. however , people are still fuzzy about its meaning.

A company is a separate legal entity, then is its own person has only has to bear its own losses.

The above statement basically means that if the company goes through any loss on finances, personal finances or assets of the Directors of this company are not affected. 

Conclusion

When it comes to the business registration benefits there are any, but what is lacking is the understanding of these benefits. Hope that through this blog we have enlightened you with the understanding of what the benefit actually means. For Registration of Business please contact BIATconsultant.com.

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Companies 2nd Amendment Rules 2019 for Appointment and Qualification of Directors

Companies 2nd Amendment Rules 2019 for Appointment and Qualification of Directors

INC 22A is an active form introduced by MCA as compliance back in January of this year. Under this compliance, every company which is formed or which is registered on or before 31st December, 2017 has to file the e-form active INC-22A. It tags the companies that are active and currently doing business. At the same time MCA takes their eyes on the working of the companies. Cobimining with this rules for Director Qualification and appointment, MCA has released a new notification for companies 2nd amendment of 2019, it states as follows-

“Where a company governed by Rule 25A of Companies (Incorporation) Rules, 2014, fails to file the e-form ACTIVE within the period specified therein, the Director Identification Number (DIN) allotted to its existing Directors, shall be marked a Director of ACTIVE Non-compliant company.

Let’s talk about Director Disqualification

As per Rules of Companies Act, under certain circumstances, a director of a company can be disqualified by the MCA. when that happens, the Director’s DIN is removed from the registry. As a result, the Director can no longer be associated with the company. Where you can definitely remove the Director disqualification by filing a Petition o the Court, what if the Director of a company is appointed to again goes non-complaint because of Non- filing of INC-22A.

ACTIVE e-form INC 22A

MCA introduced this form back in january. Important and mandatory for companies that were registered before 31st December, 2017, this form’s main reason was to tag companies that are active (Currently doing business), through active tagging and verification it tries to locate shell companies. If the companies does not file INC 22A within the extended period of due date, it is marked in the MCA registry as “ACTIVE non compliant. It means that the company is active but has not filed the ACTIVE e-form.

Director of Non-compliant company

Before the mentioned notification, it was only the company that was marked as non- compliant. However, with the announcement of companies act, 2nd amendment notification, the meaning is this,

“ If the company is marked as Non- compliant in the mCA registry because INC 22a was not filed the DIN of the Director of that company is marked as “ Director of ACTIVE Non- compliant company”.

The notification further states that when the Director’s DIN is marked as  Director of ACTIVE Non- compliant company, then they have to take all the necessary steps to file the complaint and to remove this mark. In this case the step would be to file INC 22A.

Further the notification states that once the Director files the Compliance INC-22A their DIN will be marked as Director of ACTIVE Non- compliant company.

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MCA announced- Companies (Incorporation) Fifth Amendment Rules, 2019

MCA announced- Companies (Incorporation) Fifth Amendment Rules, 2019

In its latest update to the Companies Act, MCA has come up with new amendment with companies (Incorporation) fifth amendment rules, 2019. It establishes a rule for naming a company. This amendment [provides details about name similarity, undesirable names and names that are not allowed for company incorporation.

 

Contents of Companies (Incorporation) Fifth amendment rules, 2019

 

The following notifications were issued by Companies Incorporation are as follows-

 

  1. The first part establishes rules for names which resembles too nearly with the name of the existing company- in this rule the company name which has been applied incorporation would only be considered similar to the ones Only registered under the newly established rules. Under this part there are 12 rules established. It says that under sub rule 1 the contents or the 12 rules are to be disregarded when a comparison is made between the names of the company.
  2. The second part establishes parameters of what are considered to be undesirable names. There are 19 different rules under that establish the types of names that are not desirable for the purpose of Company Incorporation in india.
  3. The third part is the part of the previous section. It establishes the words and expressions that cannot be used for company registration. There are over 27 such words that cannot be used within the names of the company if the company wants to be registered.

 

The Ministry has elaborated a variety of illustrations under this rule while determining the name of the company and companies (incorporation) fifth amendment rules, 2019 has divide the rule into two parts-

 

  • Rule 8A
  • Rule 8B

 

What is Rule 8A?

 

These rule specifies the list of undesirable names, and

 

What is Rule 8B?

 

These rules are for the word or expression which can be used only after obtaining a previous approval of central government.

 

Key Highlights of Company incorporation Fifth amendment, 2019

 

The following matters are to be disregarded while comparing the names

 

  1. The words like private, co, Unlimited, Limited, OPC pvt. Ltd, IFSC Limited etc.
  2. The plural or singular forms of words in one or both names.
  3. Use of different tenses in one or both names.
  4. The order of words in the names.
  5. Addition of the name of the place to a current name which does contain name of any place.
  6. addition , deletion, or modification of numerals or expressions denoting numerals or expressions denoting numerals in an existing names, unless the numeral represents any brand.

 

Provison

 

Provided that clause (f) to (h) and (I) shall not be disregarded while comparing the names if an existing company has provided a no objection by way of a Board resolution.

 

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How To Register A Company In India From USA

How To Register A Company In India From USA

In this blog we will discuss that how a Foreigner/ Non resident Indian can register a company easily in India .  

 

An Applicant can apply for Company Registration in India either Online or Virtual , and can easily get its company incorporated in India .

 

How to register a company in India from USA

 

The very first step to start with the registration process of  company is to decide the name of your  business entity i.e. firstly name of the Business Entity is to be chosen before applying for company registration. You can Register Private Limited Company, LLP, Partnership etc in India from USA completely online. According to BIATConsultant , it is advisable to register a LLP or a Private Limited Company in India since these requires very minimal legal requirement in India , and can be carried on in India with minimum requirement .

 

Conditions for Registration of a Company in India from USA

 

There are certain conditions which needs to be fulfilled in order to start a Company in India right from sitting in  USA:

  • Firstly  you need to make sure that there should be One Indian Resident to be a Director of the said company ( in case you don’t have , don’t worry , BIATConsultant will provide you with sleeping director for the same at initial stages) along with his/her  documents and KYC details in order to get  DIN Number and DSC (Digital Signature ) Number in India.
  • Secondly, Foreign Direct Limit is to be checked, as in case of formation of a company. If the sector comes in Automatic routes, it will not require any prior permission of RBI. however, if the sector belongs to 100% FDI route, prior permission of concerned ministry of Central Government or RBI is required to start a business and name application needs to be done for company along with the preparation of MOA, AOA of the company.
  • Thirdly , you have to make sure that you have all the documents in place for company registration and all documents are notarised from your local country and you must send all the necessary documents in well scanned format to a business consultant who is applying for the same .

 

Documents required to Register a Company in India from USA

 

Here are the list of documents which are required to register a Company in India from USA:-

 

  • Valid Passport
  • Driving License from issuing country
  • Voter Id of the issuing country.
  • Social security Number(SSN)
  • Bank Statement of last 6 month 
  • Photographs
  • A resident permit issued by an Indian embassy ( in case you want to reside )
  • Copy of valid business visa issued by foreign national 

 

Documents required if a foreign company is trying to register a company in India ( Subsidiary of Company ) :

 

If any Foreign Company wants to register a company in India then following documents are required and they are follows:

 

  • Certificate of incorporation that proves that a company is legally formed and registered.
  • Board resolution of foreign company
  • Copies of valid address proof of foreign company

 

The process of registration of Company in India  from USA : 

  1. The Applicant must have a valid account with the MCA  portal in India ( It is preferred to get help of business consultant to do the same ). And if you are not having a account with MCA portal then you can easily sign up with the portal in order to process the company registration in India.
  2. Firstly, you need to apply form DSC ( Digital Signature Certificate), for this you can directly approach the certified authorities to get DSC registered or otherwise you can directly take help of a professional like BIATConsultant for the DSC.
  3. Once you have made an account with MCA Portal and also DSC is prepared, then you can visit this link of MCA , after which you can apply for the name of the company through Run Form.
  4. The applicant after logging into the account, by entering the name of the business entity he must check that whether that name is available or not, and after choosing the name it has to be submitted through Run form along with the prescribed fees of Rs. 1000/-, after which MCA or personnel of central registration will check for the name, and if the name is unique then they will sanction through MCA within 1 to 2 weeks.
  5. After the Application for Name approval, applicant must apply for DIN Number or Director Identification Number. In order to obtain the DIN Number, you have to fill SPICE Form, and there you need to submit the details of the Director for whom the DIN Number is to be allotted along with the PAN card and passport.
  6. And after the above steps your company will be incorporated and certificate of Incorporation will be issued to you and your company will be formed in India from USA.

 

The company registration in India is only possible with the help of CA/CPA in India who is registered with MCA Portal , and can aids you with all the documentation process along with after company formation compliance service  at nominal cost . Check BIATConsultant.com to know more about it

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What is the commencement of certificate of business?

What is the commencement of certificate of business?

There used to be a certificate for the commencement of the business. It was put into the full force until the Companies (Amendment) Ordinance, 2018. Under this ordinance until and unless a company has not filed a declaration within 180 days from the Company Registration that company  cannot commence their business. This declaration states all the shareholders of the company and have paid the values of shares as what stated in the MOA of the company. So here in this blog we will discuss the format of this declaration, and documents required for this declaration and fees and penalties for complying with the orders.

 

Format

 

I am authorised by the Board of directors of the company through resolution Number______ dated_____ to sign this form and thereby declare that all the requirements of the Companies Act, 2013 and the Company Ordinance Amendment, (2018) and the rules made thereunder in respect of the subject matter of this form and matters incidental thereto have been complied with. I further declare that:

 

  1. Whatever is stated in this form and in the attchments thereto is true, correct and complete and no information material to the subject matter of this form has been supressed or concealed and is as per the original records maintained by the company.
  2. All the requierment attachment have been completely and legibly attached to this form.
  3. Every subscriber to the MOA has paid the values of share agreed to be taken by him.
  4. The company has filed with the Registrar a verification of its registered office as provided in sub section (2) of section 12.

 

Documents that have to be attached-

 

  1. COI of the Company
  2. PAN of the company
  3. List of directors and shareholders of the company
  4. Bnak statements of the Directors and shareholders of the company
  5. ID proofs of the same
  6. Receipt proof (if any)

 

Fee structure of the share certificate

 

Share capital involved Fee to be paid

 

Less than 1 lakh Rupees 200
1,00,000- 4,99,999 Rupees 300
5,00,000- 24,99,999 Rupees 400
25,00,000- 99,99,999 Rupees 500
1,00,00,000  or more Rupees 600

 

What if you don’t comply with the Declaration

 

 

  • Penalty on the company- if the company do not file the declaration then there is a penalty of Rs. 15000/- on the company.
  • Penalty on directors- the defaulted Directors have to pay the penalty of INR 1000/- per day after the 180 days limit has been passed.
  • Company removal- if the registrar has the reasonable cause after the 180 days of incorporation then he can also strike off the company from the companies register.

 

 

Not filing a declaration according to the new amendment in the year 2018 is a hassle. Therefore to get relief from the hassle you can get in touch with BIATConsultant for further assistance and we can ensure that your company is registered hassle free and also ensures for its commencement declaration.

 

 

 

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Is Independent Director really an independent person?

independent director

In the age of start-ups there are Directors who take up the charge of the company as they manage and controls the whole of the undertaking efficiently.

 

Directors are the representatives of the investors and ensures that the company is moving inna right direction to achieve its objectives. For every startup Board of Directors takes necessary steps to ensure that there is no mismanagement in the company.

 

Independent Director

 

Independent Directors are the Directors who are brought from outside to participate in Board Meeting of a company and must not be having any material or pecuniary interest in the Company. Only those who are not having any material or Pecuniary interest in the Company determined by the Board to Directors to become Independent Director of the Company. He is given sitting fees in the Board meetings of the Company.

 

Appointment of Independent Directors

 

Appointment of Independent Directors in a Listed and Unlisted Companies is very easy and the same is approves in the meeting of shareholders and Independent Directors are appointed as per the provisions under Companies Act, 2013 and they are as follows-

 

For Listed Companies-  at least one third of the total Directors should be independent Directors.

 

For unlisted Companies-  At least there should be two Directors who are Independent in case of unlisted companies.

  • Public companies should be having paid up share capital of 10 crores or more.
  • Public companies must be having turnover of Rs. 100 crores or more.
  • And public companies who should be having in aggregate, outstanding loans, debentures, and deposits exceeding 50 crore Rupees or more.

 

Term of Appointment

 

The appointment is for a term of 5 years commencing from the date of appointment and ending on 6th Annual general meeting of the company following the date of appointment. Such appointment can be terminated at any point of time according to the Companies Act, 2013.

 

The time period of the Independent Director must not exceed two consecutive periods of 5 years each and can be extended for a second term only after passing a special resolution.

 

Re-appointment of Independent director

 

According to the companies Act, 2013 Independent Directors can be reappointed only after the expiry of the second term but such reappointment can be done only after the expiry of three years.

 

Independent Directors always makes sure that the affairs of the company are conducted in a best way so that organisational objectives can be achieved easily.

Want to form a company or get appointed in a company as a director , consult BIATConsultant – #1 Business Consultant In India

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