(1888PressRelease)
May 01, 2006 - Steps to be taken to get incorporated a private limited company
A article by law firm at Delhi in India :-
1. Select, in order of preference, a few suitable names, not less than four, indicative of the main objects of the company.
2. Ensure that the name does not resemble the name of any other company already registered and also does not violate the provisions of Emblems and names (prevention of improper use) Act, 1950.
3. Apply to the concerned ROC to ascertain the availability of name in Form-1 A of General Rules and Forms along with a fee of Rs.500/-. If proposed name is not available apply for a fresh name on the same application.
4. 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.
5. Arrange for stamping of the Memorandum and Articles with the appropriate stamp duty.
6. Get the Memorandum and Articles signed by at least two subscribers in his own hand, his father’s name, occupation, address and the number of shares subscribed for and witnessed by at least one person.
7. Ensure that the Memorandum and Article is dated on a date after the date of stamping.
8. Get the following forms duly filled up and signed:-
a. a. Declaration of compliance – Form-1
b. b. Notice of situation of registered office of the company – Form-18.
c. c. Particulars of Director, Manager or Secretary – Form-32.
1. 1. Present the following documents with ROC with filing fee and registration fee:-
i. i. The stamped and signed copies of Memorandum and Articles of Association (3 copies).
ii. Form-1, 18 & 32 in duplicate.
iii. Any agreement referred to in the M&A.
iv. Any agreement proposed to be entered into with any individual for appointment as Managing or whole time Director.
i. i. Name availability letter issued by ROC.
ii. Power of Attorney from the subscribers in favour of any person for making corrections on their behalf in the documents and papers filed for registration.
1. 1. Pay the Registration and Filing Fee by Demand Draft/Banker’s Cheque if it exceeds Rs.1000/-.
11. Obtain Certificate of Incorporation from ROC.
Additional Steps to be taken for formation of a Public Limited Company
12. Consent of Directors to act as such in Form No.29.
1. 1. Arrange for payment of application and allotment money by Directors on shares taken or agreed to be taken.
2. File the statement in lieu of prospectus with ROC in schedule-iv of the Companies Act.
3. File a declaration in Form-20 duly signed by one of the Director.
4. Obtain the Certificate of Commencement of Business.
o o As per Citizens Charter name availability will be disposed of in 3 working days.
o Application for registration of a company – 10 working days.
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What is the minimum authorised capital for a company?
The minimum authorised capital for Private Limited Company – Rs.1,00,000/-
For Public Limited Company – Rs.5,00,000/-
For the use of some key words as part of name, the minimum authorised capital is given in the table below:
Sl.No. Key words Required minimum authorised capital
1 Corporation 5 Crores
2 International, Globe, Universal, Continental, Inter-Continental, Asiatic, Asia, being the first word of the name 1 Crore
3 If any of the words at (2) above is used within the name (with or without brackets) 50 Lakhs
4 Hidustan, India, Bharat, being the first word of the name 50 Lakhs
5 If any of the words at (4) above is used within the name (with or without brackets) 5 Lakhs
6 Industries/ Udyog 1 Crore
7 Enterprises, Products, Business, Manufacturing 10 Lakhs
What is the minimum number of directors required to form a company?
Minimum no. of directors for Private Limited Company – Two.
For Public Limited Company – Three.
What is the minimum Paid-up Capital at the time of registration of a company?
The minimum paid up capital for Private Limited Company – Rs.1,00,000/-
For Public Limited Company – Rs.5,00,000/-
What is the difference between Authorised capital and Paid-up capital?
Authorised capital is the capital with which the company is registered. The company can issue shares upto the level of Authorised Capital. Paid up capital means the amount of capital actually paid by the shareholders in respect of shares allotted to them.
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